Digi Power X receives US$200M debt commitment for Alabama AI campus
The proposed project debt awaits lender diligence and final documents as Phase 1 completion remains targeted for December 2026.
Ines Halvorsen
Closing within 90 days is the target for US$200 million in Alabama construction debt, Digi Power X Inc. NASDAQDGXX said on Tuesday. The proposed borrowing would help finish its 40-megawatt Columbiana AI campus and cover related project costs, according to the Oct. 13 release. An unnamed major lending institution issued the commitment letter, with closing subject to its due diligence and definitive documentation.
The debt would sit in a project special purpose vehicle, supported by an unsecured company guarantee through completion and in other limited circumstances. Digi Power X operates AI data centres and power assets, providing colocation and graphics-processor rental services.
As of Oct. 13, the company reported approximately US$135 million in cash and US$153 million in year-to-date capital expenditure. It reported no share issuance through its at-the-market equity program in the third quarter of 2026.
Shares traded at US$3.00 at 8:03 a.m. EDT on Tuesday in Nasdaq premarket trading, according to Nasdaq's quote page. Digi Power X kept its construction targets at December 2026 for Phase 1 completion and March 2027 for Phase 2.
The Oct. 13 release does not disclose an interest rate, repayment term or drawdown schedule. It also gives no remaining construction-cost estimate, so it does not establish whether the commitment covers the entire funding requirement.
Digi Power X says the intended use of proceeds would help preserve corporate liquidity and mitigate shareholder dilution. The announced financing remains a commitment subject to closing conditions, with definitive documents still required before the expected closing.
"This financing commitment is an important step toward completing our Alabama campus while limiting dilution for our shareholders," Digi Power X chairman and chief executive Michel Amar said in the Oct. 13 release.
Phase 1 Equipment Commitments Are In Place
In a July 7 update filed with the U.S. Securities and Exchange Commission, Digi Power X said commitments were in place for every major long-lead item required for Phase 1. These included electrical and switchgear infrastructure. Tuesday's update provides no revised equipment delivery timetable.
The July release also identified adequate financing as a condition for Phase 2 deployment. The October commitment sets out a proposed source of project debt, while lender checks and final documentation remain outstanding.
Bitdeer Technologies Group NASDAQBTDR provides another dated example of future AI capacity under contract. Its Oct. 12 announcement disclosed an eight-year services agreement for 60 megawatts of critical IT load at A103 in Malaysia, with energization expected in the first quarter of 2028. Bitdeer said no customer offtake commitments had been entered into for that capacity.
Read more: Bitdeer Technologies Group signs eight-year deal for 60 MW AI facility
Digi Power X's New York conversions remain in the planning phase, with no completion date given in Tuesday's release. The company separately plans further modular computing capacity after its first modular data centre began operating in May 2026.
The next Alabama construction milestone is Phase 1 completion in December 2026, followed by Phase 2 in March 2027. The proposed debt is expected to close within 90 days of the Oct. 13 announcement, subject to lender diligence and final documents.
