AI data center operator Digi Power X Inc. (Nasdaq: DGXX) is upsizing its equity offering program by $100 million to a total of $175 million, signaling an aggressive push to fund the expansion of its AI infrastructure amid soaring demand for computing power.
The company intends to use the net proceeds for "general corporate purposes, including funding ongoing operations and/or working capital requirements, completing construction on the Company’s Tier 3 data center facilities, repaying indebtedness outstanding from time to time, and completing potential acquisitions," according to a company press release on May 8.
Under the amended agreement with agent A.G.P./Alliance Global Partners, Digi Power X can sell subordinate voting shares directly on the Nasdaq Capital Market at prevailing prices. The at-the-market, or ATM, program allows the company to raise capital incrementally as needed, providing financial flexibility. No shares will be offered or sold in Canada under the program.
The capital raise is critical for a company in a high-growth, capital-intensive sector. While the offering provides necessary funds to scale its operations and compete with larger players, selling new shares on the open market could lead to dilution for existing shareholders. The $20.75 billion company maintains a relatively balanced capital structure with a debt-to-equity ratio of 0.87, according to data from InvestingPro.
This financing expansion follows several major strategic moves by Digi Power X aimed at cementing its position in the AI infrastructure market. The company recently announced a 10-year, $1.1 billion agreement with Cerebras Systems to build out a 40-megawatt AI data center campus in Alabama.
Furthermore, Digi Power X launched its NeoCloudz GPU-as-a-Service platform with a $19.6 million, 24-month rental deal with SubQ AI for access to Nvidia’s latest Blackwell GPUs. To further accelerate its infrastructure build-out, the company also recently launched an independent capital raise for its subsidiary, US Data Centers, Inc., bringing on former Verizon CEO Hans Vestberg as a co-founder and senior advisor. The company operates across Alabama, New York, and North Carolina with approximately 400 MW of secured power.
This article is for informational purposes only and does not constitute investment advice.
