Digi Power X Secured $200 Million Debt Financing
The funding will support the construction of an AI-focused data center campus in Alabama.
Updated on Oct. 13, 2026 in Data Centers
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Digi Power X has received a $200 million debt financing commitment led by Goldman Sachs to fuel its Alabama expansion. The capital is designated for the completion of an AI data center campus to preserve corporate liquidity.
Why it matters
The financing allows the company to continue infrastructure development while minimizing shareholder dilution. It provides the necessary capital to meet upcoming completion deadlines for the Alabama project.
The Alabama AI data center is designed to support 40 MW of capacity. The company reported $153 million in year-to-date capital expenditures for 2026.
The players
Digi Power X
This is a technology firm focused on the development and operation of modular data center infrastructure.
Goldman Sachs
This is a global financial institution serving as the lead syndicator for the debt financing arrangement.
US Data Center
This is a data center entity in which Digi Power X maintains a majority ownership stake.
The details
The debt will be structured at the project special purpose vehicle level with an unsecured company guarantee. Digi Power X maintains a majority stake in US Data Center and has utilized its modular ARMS 200 units since earlier this year.
Timeline
The first ARMS 200 modular data center began operating in May 2026.
The company recorded no share issuances during the third quarter of 2026.
The debt financing commitment was announced on October 13, 2026.
Phase 1 of the Alabama campus is expected to be finished in December 2026.
Phase 2 of the Alabama campus is expected to be finished in March 2027.
The Tech Race
The deployment of modular hardware represents a strategic shift toward rapid, scalable infrastructure to meet rising AI compute demands. This approach positions the company to compete against larger rivals by accelerating time-to-market for data capacity.
While the deal focuses on corporate infrastructure, the construction of this facility in Alabama supports local industrial growth and regional AI compute availability. Residents may see increased activity at the construction site as the project moves toward its phase completion dates.
The takeaway
The company has secured significant capital to advance its physical infrastructure without tapping into equity markets. This move demonstrates a strategy to build critical AI compute capacity while protecting existing shareholders from further dilution.
What happens next
The financing commitment is expected to officially close within 90 days of the October 13 announcement. Following the closing, the company plans to finalize Phase 1 of the Alabama campus in December 2026, followed by Phase 2 in March 2027.
Further reading
For more information on the industry, visit the Data Centers section.
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Do you trust the long-term stability of data center projects heavily funded by debt?
