The deal builds on a January letter of intent for EVTV to acquire AZIO AI, signaling a strategic pivot to integrate energy infrastructure with high-density computing.
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EVTV Deepens AI Push With 5 MW Data Center Order From AZIO AI
Envirotech Vehicles Inc. is moving forward with its push into artificial intelligence infrastructure, placing an order for approximately 5 megawatts of modular data center capacity from its potential acquisition target, AZIO AI Corp.
"Through this process, both parties have identified a shared opportunity to address one of the most significant constraints in AI infrastructure today—access to reliable, scalable power," AZIO AI said in its May 11 press release.
The order will expand an existing deployment in South Texas that pairs high-density AI compute directly with behind-the-meter natural gas power generation. This follows a non-binding letter of intent announced in January 2026 for EVTV, a Nasdaq-listed vehicle manufacturer, to acquire 100 percent of AZIO AI's shares.
The move positions EVTV to capitalize on the extreme power demand from the AI sector, a strategy validated by giants like Nvidia, which has invested over $40 billion this year to secure its own supply chain. However, the final terms and timing of the merger remain under evaluation and subject to board and shareholder approvals.
A Strategy Driven by Power
The core of the joint strategy is to address the primary bottleneck for AI expansion: access to power. By integrating AZIO AI’s modular data centers with dedicated, behind-the-meter energy sources, the companies aim to create a more scalable and cost-effective model for AI compute. The South Texas site serves as the initial platform for this "Power + Compute" model.
This approach mirrors a broader industry trend. The race for AI dominance has created a scramble for not just chips but also the power and infrastructure to run them. Nvidia, the leader in AI chips, has committed over $40 billion in 2026 alone to investments in data center operators like IREN, component makers, and cloud providers. This has raised analyst concerns about "circular investments," where a company effectively funds the purchase of its own products.
While the EVTV-AZIO AI deal is on a smaller scale, it reflects the same underlying dynamic. With EVTV as both a customer and the potential acquirer of AZIO AI, the partnership aims to create a vertically-integrated player in a market constrained by energy availability. The success of the merger will depend on executing this vision, from manufacturing and delivery to commissioning the new infrastructure.
This article is for informational purposes only and does not constitute investment advice.
[1] AZIO AI and EVTV Progress with an additional 6 MW of Behind-the-Meter Power and Multi-Megawatt AI Infrastructure Order[2] MP Auguste announces up to $3.25 million for Zone Agtech to help accelerate clean technology innovation across agriculture in Quebec[3] The Conference Board Employment Trends Indextm (ETI) Increased in April[4] Nvidia embraces role of AI investor, pushing past $40 billion in equity bets this year
