Digi Power X reports US$12.25M revenue as AI sales reach US$5.66M

AI sales have reached nearly half of quarterly revenue before a major Alabama colocation project starts billing. Digi Power X Inc. NASDAQDGXX, an AI data-centre operator developing a 40-megawatt Alabama campus, reported on Friday that third-quarter revenue reached US$12.25 million, up 85 per cent from the second quarter.

The year-over-year revenue increase was 50 per cent for the period ended Sept. 30, a different comparison from the headline sequential gain. AI revenue reached US$5.66 million, or 46 per cent of sales, while Columbiana colocation billing is expected to begin in January 2027.

Digi Power X ended September with US$119.6 million in cash, cash equivalents and digital currencies, and no outstanding borrowings, according to the Nov. 13 release. Its expansion still requires financing: planned capital expenditure for 2027 is approximately US$350 million.

Digi Power X shares NASDAQDGXX closed at US$2.21 at 4 p.m. EST on Nov. 12, before Friday's results. That price establishes the market level entering the announcement; it does not measure a response to the earnings release.

GPU Rentals Supplied Less Than Half Of AI Revenue

The Nov. 13 results put AI revenue growth at more than 400 per cent against the second quarter. The company reported no AI revenue in the corresponding quarter of 2025, so the sequential comparison measures the expansion of a newly established business.

GPU rentals generated US$2.46 million in the September quarter, increasing 127 per cent sequentially, according to the release. Rentals represented less than half of reported AI sales, so the broader AI growth rate does not describe rental growth alone.

The company also said on Nov. 13 that its NeoCloudz Token Factory was live, selling AI inference directly to customers using its own power, data centres and GPUs. The reported rental revenue and the broader AI total provide separate measures of sales as that business develops.

Third-quarter net income was US$1 million, compared with US$0.1 million a year earlier, according to the Nov. 13 release. Digi Power X said digital-currency and warrant valuation gains materially supported the profit, separating the bottom-line result from revenue growth.

Adjusted EBITDA, a non-GAAP measure, was US$0.6 million for the September quarter, compared with a US$1 million loss a year earlier. The company also reported US$6.5 million in unadjusted EBITDA in its Nov. 13 results.

Columbiana Billing Is Expected In January

Digi Power X's first Columbiana phase covers 15 megawatts, with tenant access and commissioning expected on Dec. 15. The Nov. 13 release puts billing after commissioning, in January 2027, so the quarter's reported AI sales preceded that planned colocation contribution.

The first phase carries approximately US$402 million in contract value over an initial ten-year take-or-pay term, according to the Nov. 13 release. That multiyear amount is separate from revenue already recognized in the September quarter.

Construction of the second phase is underway, with tenant access targeted for March 2027, subject to conditions. Its 25 megawatts bring the two-phase development to 40 megawatts, with the first phase still approaching commissioning.

"Our next priority is execution: bringing Columbiana into service, expanding our compute capacity and converting our power assets into long-term contracted revenue," Digi Power X chairman and chief executive Michel Amar said in the Nov. 13 release.

Expansion Funding Remains Conditional

Digi Power X announced a US$200 million debt-financing commitment on Oct. 13 for its Alabama development. The Nov. 13 results say the proposed facility is expected to close in the fourth quarter, subject to definitive documentation and other conditions.

The company's September liquidity total combines money and digital currencies, so the full US$119.6 million is not described as cash alone. Its Nov. 13 plan calls for approximately US$350 million of capital spending in 2027, funded principally through customer deposits and contract-backed debt.

Those intended funding sources remain part of the expansion plan, while the credit facility still requires closing. The distinction between operating sales, contracted business and expansion funding also runs through Mugglehead's coverage of the shift from mining into AI cloud services.

Read more: HIVE Digital Technologies reports US$84.9M revenue and US$139M cash

Digi Power X's Nov. 13 outlook anticipates an annualized revenue run-rate of approximately US$250 million to US$300 million by the end of the third quarter of 2027. That target is subject to adequate financing and market conditions, rather than a forecast of revenue already earned.

The next operating test is Dec. 15, when Digi Power X expects to provide access to Columbiana's first phase and begin commissioning its cooling and power systems. The subsequent test is whether billing starts in January 2027 as planned.