TrendGPS - I suggest you listen to this interview about $DGXX (even just the key...

Hosted by @TrendGPS · 2026-07-18 · 30 min · Tags: DGXX

TLDR

Michelle Amard, CEO of DigitPowerX, discusses major milestones including a $1.1B ten-year colocation contract with Cerebras Systems scalable to $2.5B. The company is executing on Alabama data center construction, GPU bare metal rentals, and full-stack AI infrastructure while navigating New York moratoriums through grandfathered status and geographic diversification.

$1.1B Cerebras contract with scale to $2.5B over ten years
Alabama 40MW data center phase one due December, phase two March
Self-funded $100M CapEx with $150M cash and zero debt
Grandfathered in New York with 50-60MW existing capacity
GPU bare metal and GPU-as-a-service revenue streams live
Alabama asset valued at $500M-$1B alone vs current market cap
Upcoming catalysts include debt financing and North Carolina expansion
Full-stack positioning from power to AI software services

Speakers

Frank — Host conducting interview, highlighting deal scale, stock movements, power demand, and catalysts while expressing bullish views on execution and valuation disconnect.
Michelle Amard — CEO detailing contract wins, construction progress, revenue generation, financial strength, and future plans with emphasis on value creation and AI positioning.
Speaker 2 — Delivers standard production disclaimer at end of broadcast.

Notable quotes

“this is a ten-year colocation contract, with, with Cerabras Systems worth one point one billion, with the ability to scale to two point five billion” — Frank
“we CapEx close to a hundred million dollars, all self-funding, in Alabama” — Michelle Amard
“the data center finish Is worth a billion to a billion two” — Michelle Amard
“we are definitely grandfathered” — Michelle Amard
“we are actually, getting AI revenues, and we are actually capable Of running, tier three GPU, bare metal rental vertically” — Michelle Amard
“from one location, one project, then we have a bare metal rental, additional EBITDA, and then we have the platform today And the credibility to do more business for '27 and '28” — Michelle Amard
“your Alabama asset alone is worth over five hundred million dollars” — Frank
“we are one of a few And so we generate power, we convert power to a, to a, a setup, a data center, and then we process with the GPU servers” — Michelle Amard

Transcript

Frank: Michelle Amard, CEO of DigitPowerX, thanks so much for joining us on Wall Street Unplugged again. Good morning, Frank. How are you today? I'm doing okay today. So, I'm looking forward to getting an update. The last time I think we did this was a couple of months ago, and I know you just, announced the US, data centers and the stock fell, and you came out and had a great report, and the stock went up tremendously since then, but I, I wanna talk about So much that has happened, including the Cerabras mega deal. And this is a ten-year colocation contract, with, with Cerabras Systems worth one point one billion, with the ability to scale to two point five billion, right? So, talk about that, you know, I, I guess I'd love to learn the insides of it, right? It's an amazing deal, but was there, is there a lot of people out of bidding for this? Are you seeing demand for hyperscalers? And how did you decide where Cerabras is, is,

Michelle Amard: Good morning. So, so yes, we are very, very, pleased with what we accomplished, so far this year. it was definitely a milestone and a pivoting moment for us. We worked very hard to get this, contract. now we get the validation that we are in play in the AI infrastructure build so far this year, we CapEx close to a hundred million dollars, all self-funding, in Alabama and We are in very good shape to deliver phase one, December this year, which will be a Incredible accomplishment, considering we signed in May. we locked in all the long-term equipment. we are, as we speak now, building the data hall we should be in good shape for, for December, and, we will address phase two, and deliver phase two by the end of March next year, and then we have a Forty megawatt IT load, state-of-the-art data center, with the latest, chips from Cerebras. which is one of the best chip maker for inference, these days. we believe that the data center A loan, is worth anywhere from twenty-five to thirty million dollar megawatt. So the data center finish Is worth a billion to a billion two. I read that, Blackstone paid twenty-seven million dollar megawatt, a month ago for data center. So, so Basically every dollar we diluted in, every stock we diluted in the past is serving a purpose and creating added value three x to four x So I think it's very important, for the investors to understand that, we are creating tremendous value, by building that data center. Then You have a contract that has an additional value, a, a billion won to two and a half billion dollar contract, as Also a tremendous value, on top and beyond the data center, physical value. so we're, we're, we're very, very, proud Happy about what we are doing now. We are getting into the, the world of AI infrastructure and we found a very, a solid partner that we can develop for future, project as well.

Frank: It's a, it's a huge difference between one point one billion and two and a half billion, right, with extensions. Will the extensions include, is it further billing out the Alabama plan? Is it, you know, how do you get that contract to two point five billion? It's literally more than double the one point one. It's, it's a huge deal, right? And it says, you know, and I see this with a lot of these contracts that are going on with some of the companies where, you know, they'll sign and say, okay, with the extension of a possibility Ten to two point five billion.

Michelle Amard: So basically, a-after ten years, when you have, you know, Cerebras is the tenant, having billions of dollars of GPUs inside that data hall, a full organization trained they'll go nowhere, they'll stay there because it's much, more convenient for them to renew than to change a location. Yeah. So, so, an happy, happy tenant Will never leave the location. they'll stay there for, for economic reasons, for, for efficiency, and convenience, so they'll stay there. and, and usually that's what happened to a, to a tenant that has billions of dollars of, equipment inside the data hall

Frank: Now, let's talk about, you know, your stock price has been coming down. You had great news on it, right? I mean, we're in early for our subscribers under a dollar seventy, right? So, but the stock has run up after this news tremendously to eight dollars, and now it's come back down. And I think recently, people are talking about, you know, New York, which, which accounts for, you know, I'm not too sure if it's a third of it of, or maybe twenty-five percent of the total maximum, right? Or a pause in construction of, of data centers for one year, again, a lot of political reasons, they, they say that to see the effects of, of environment, energy, and stuff like that. Talk about that, are you guys grandfathered? Did that impact you? Because that has hurt your stock in the past few weeks, and I'm interested to see, are you guys grandfathered in? You guys been talking about this for a while, you know, how does that work for you guys? Does it impact you?

Michelle Amard: So, so two, two, two, full process here. First, we've always been on the moratorium in, in, in the state of New York. There's always a moratorium. I think in twenty twenty-two there was one, and, we are definitely grandfathered. if you read the moratorium, the state moratorium, it's for Two, specific, type of, data centers, new, brand new data centers application, so the one that are pre-existing aren't affected by the moratorium at all. Wow. And two, for the new one Anything that's twenty megawatts and up. So you, you have two, condition. So we, we've been running, we have two location in New York one in Buffalo, one in, North Town, Rwanda. We've been running in Buffalo for ten years, or even maybe, yeah, ten to eleven years, so we are definitely grandfathered, and we've been running for almost five years in North Town, Rwanda, so we are definitely grandfathered. Now, what we can't do with that, Moataya? Is expand our footprint of energy. So if we are using, fifty megawatt, or sixty megawatt in New York, we can't use hundred megawatt for next twelve months So, but if we use fifty, sixty megawatts in New York, it will result in a one and a half billion dollar contract, as a colocation, and if you do GPU as a service, ten x It will result in, in, in multiple, billion dollars contracts. So, so we are okay for the next twelve months to develop what we are allowed to develop Okay. And, meet our plan. so I want everyone, that's very concerned by New York State, that we've been dealing with this type of, moratorium Forever. And, and it's always there, we always renew it, now we try to control newcomers, i-it's actually The state is eliminating the competition in New York State. So the people that are in place, stay in place, and we're not the only one, by the way. A lot of data centers That are known companies like Terra Wolf, is in New York, Art Eight is in New York, a lot of our peers are actually, data processing in New York as we speak, very large companies, so we are not the only one we are all grandfathered, we can't expand in New York State temporary for twelve months. And, and which come to my second point that, it was pretty, you know Smart to geopolitically diversify ourselves and expand to different states like Alabama, like North Carolina, like Texas. So, so we, we, we are looking at Different states so we can diversify our risk or risk.

Frank: What are you hearing is someone has been in the room with, with a server, so these hyperscalers, and I think server has to guarantee seven hundred and fifty, I believe it's seven hundred and fifty megawatt of power for, for open AI. What is, what are you hearing out there? 'Cause what I see is sixty percent of these projects are being delayed, and, and, and, you know, I've been arguing that people who have the data, and have the, the, you know, the data centers in place and have the actual power right now, it has to put you in a significant advantage, right? I mean, AI's not slowing down, right? But they need power, yet a lot of these things are getting delayed. Now you're seeing things in New York happen. I mean, doesn People with power, they're in dire need of this power. are you hearing those conversations as well as saying, "Hey, you know what, Michelle, what about the future of North Carolina? Let us know what's going on." I mean, are you hearing things like that?

Michelle Amard: Absolutely, and, and we are in a, in a much better position today because we got the validation o-on, on two level. Level one, we got a major player like Cerebras. Slash OpenAI. And B, we are involved in all slacks vertically. We are running now, as we speak GPU bare metal rental. So, so we are, we are not a, you know, a project, future project, chat here. We are actually, getting AI revenues, and we are actually capable Of running, tier three GPU, bare metal rental vertically, power, infrastructure and, delivering, data, data processing. So, we're in a very good spot, we get a lot of demand, but of course, you always have to cope with demand with the execution, and, and part of the execution is the financial aspect of it. We can't keep on, and, and, and diluting to grow our business. It has to be a, you know, a fair, combination of, equity and debt financing, which we are working on.

Frank: So, talk a little bit more about that, maybe you can explain to people, 'cause sometimes people who know your company are familiar with it, with NeoClouds, and you call it bare metal rental, and congratulations, you guys are generating revenue off of this. Now, again, y-y-it's, this is proven, right? You sign a contract with Sarah Brass, it means that, you know, now the AI transition is here, and now you have, you know, NeoClouds. Could, could you explain that part of the business, like who maybe your clients would be on the GPU But just for, for every investor just looking at this for the first time, how big of a deal that is for you guys?

Michelle Amard: So, so, so, I'll, I'll, I'll explain a little bit the, the, the total picture. So You start AI as a real estate and you rent a space, then you go to the next step, a little bit smarter, you do a colocation deal, meaning you are in AI, you build a data center, you maintain the data center, and you find a partner, a, a, a co-location tenant that will sign a deal and will handle from the CDU to the rack the management of the GPUs, and then you go to the next step, which is GPU bare metal, you buy the GPUs, you, set up the infrastructure, and you run the GPUs and rent GPU bare metal. And then next step, which we are implementing as, as we speak, we are opening an office in Silicon Valley and, we gathered tremendous talents to do GPU as a service. So now that's the last layer. So if you put it on top of, of a layer of a software, then, GPU that you rent Four dollar an hour, GPS as a service, you can rent it for ten, twelve, fifteen dollar an hour, and it's tremendous margins, in that business. So, so we are setting ourselves up to be All stacks on, from power to building, to colocation, to bare metal, to GPS as a service. We are, we are a full stack, company today, which has, has, a much bigger value than just a real estate play.

Frank: Yes. Now, when I look, people like us, a-and even, you know, our subscribers got into your, your stock very early, a-and knew the story early on. I know that Peter Lynch, Ken Griffin are a-a-also investors now I'm looking at your stock here, and, and it's around a hundred and fifty million dollars, might be a little bit lower than I'm too sure, in cash and equivalents, right? No long-term debt. your Alabama asset alone is worth over five hundred million dollars. You, you signed a one point two billion dollar contract that could scale up to two point five billion, and you're predicting two hundred and fifty, three hundred, million run rate starting next year, yet your market cap now is fallen to what, three seventy, even below that, that mark. What All this cash on your balance sheet, you guys are in perfect position. I, I would think existing i-investors right now and, and guys like me would be, you know, I'm buying more as well, but it just seems like, you know, there's, there's a big disconnect here, isn't there?

Michelle Amard: So, so, so a couple things. I, I think that the last, three, four weeks, the market AI in general has been, down, and I believe that, a lot of investors got a little bit scared about New York, even though Alabama has nothing to do with New York, Alabama on its own is worth, as you mentioned or stated earlier, when the project is, done, in my opinion a billion dollars on its own. So Alabama on its own is worth more than our market cap for sure, and, and New York, we are grandfathered. So I think that there's, the also the introduction of these big companies, SpaceX, going public, drew a lot of money from a lot of, you know, small caps. we're, we're, we are still a small cap. we still are, a tremendous growth from the beginning of the year, I believe that, you know, investors are looking for new catalyst debt financing, you know, approvals, new contracts, and, and, you know, we are in a business that, you can't bring catalyst every week. You have to execute as you bring a catalyst. We brought an incredible, contract And we are executing that contract, and, I'm planning to do an event actually on site and interviews, and I will invite, you know, analysts and you, Frank, if you want to come,

Frank: absolutely,

Michelle Amard: and to see the, to see the site, the actual site, it's very impressive. To see the accomplishment. So we, we have a site that is gonna bring about basically fifty to sixty million dollar EBITDA a year That's tremendous. Okay, from one location, one project, then we have a bare metal rental, additional EBITDA, and then we have the platform today And the credibility to do more business for '27 and '28. And that's where we stand, and we're in a very, very good position compared to our peers. We must be one of the Basically only, AI company today that has zero debt, that self-funded close to a hundred million dollars in CapEx, but has-- but is worth three X, and that still remain with a hundred and fifty-five million dollars cash on their balance sheet. Okay, so, we are strong, no pressure, no debt. The market volatility is, it, it is what it is. The, the real value of our company is there and it's real. It's, it's, it's, it's translated by this data center that has a, a, a great value, that I stated earlier, it's translated by the contract value as well, and also our credibility now as a AI infrastructure, business. So, so we're very pleased, we're not gonna get, distracted by the volatility temporary of, of, of a market, and we work harder We build and we create value.

Frank: And you have, you have executed on every level. What, what is some of the catalysts? I mean, I know you, you know, we talked about them, right? Where, where, all right, get New York developed. What about North Carolina? What are some of the catalysts that, that investors can look forward to because that, that maybe isn't priced in? So, I mean, we know, okay, hey, you're building this twenty twenty-seven. You talked about EBITDA coming, you know, with the contract with Sarah Pretty much double of, of your value, of your stock price right now in terms of market cap. But what are some of the things like in the next six months, because I think that's what people are looking for and saying, okay, why am I gonna invest in this? What could happen? 'Cause now that the deal's been signed, I, I, you know, I think everyone's like, okay, that, there's a news and now they're executing. But what about North Carolina? What about like in the short term to six, nine months that people could look forward to?

Michelle Amard: So, so in the next six months, and before the end of the year, the catalysts are, are as follows: A, a debt financing partner. To finance our growth so we mitigate dilution, that's very important, and, and I'm working very hard on it and I'm very, optimistic. Then, how do we ex-put The footprint of power we have in our pipeline, we have New York, we know we're grandfathered for fifty, sixty megawatts, so that converted is another couple billion dollars of contract, okay? And it's, it's meaningful. North Carolina, it's a twenty-eight, twenty-nine item waiting for the load study, and that will be a two hundred megawatt Diversified, different state, and then we had this LOI we signed with West Virginia, power plant, yeah, that, that belongs to, Few partners, one of them is on my board, Aj Gupta, and, Aj Gupta is partner with, Tony Robbins, and, we are trying to formulate a A cooperation or partnership at the power plant, but it's a huge, you know, huge project, one point three gigawatts. So, I want to make sure I don't rush To a big project that I can't finance, okay? I have to be able to finance, the growth. So, so step one, we find our financial partner for debt financing, we reinforce, we validate and execute, our data center with Cerebras. We expand our bare metal rental and we move up a, a layer software with GPU as a service. Now we are full stack, service company, and then we- Set up our twenty twenty-seven and twenty twenty-eight platform, and we grow from there. And, and we have, we have a very incredible upside potential for the next three years Because if you think about forty megawatts, in my opinion, that doesn't have forty megawatts is worth a billion dollars, okay? Plus the contract value that's worth, you know, X Plus the bermetal, and we can grow that business three x, four x in the next three years. So, so from there, I believe that we have a good shot of being comparable to our peers. A-and you saw the, you, you see the market value of our peers, per megawatt We are, we are way, way undervalued.

Frank: So you have, yeah. And, and you have, you know, contracts in place generating AI revenue for the first time. So

Michelle Amard: exactly. And, and, and I, I would add to, to, you know, certain investors called me and said, "Yes, but there's an execution risk." I said, come to my site and, and look at the beautiful tier three running hundred percent twenty-four seven, successfully, and we are printing AI revenues now as we speak. It's not true for everyone, you know? We-- so we're a little bit more advanced than, than, than a lot of, of our peers. we also are going live on a colocation This year, where our peers, got contracted earlier and will deliver later. So, so we are, we are doing a very good job. I'm not worried about the, the level of the market cap now. You know, it's, it's, it's part of a volatility in the last few weeks. I, I think that we have Serious assets, and value, and we're adding a lot of value for our shareholders.

Frank: You, you know, you have such a strong runway, I wonder, and this is one of the sectors, 'cause when I do, you know, you, you, you comparative analysis to some of the companies, again, some of them are signing deals, but they're not gonna be available for, for that longer than yours. Do you ever see consolidation in this space? I mean, there's one space I don't think anybody's talking about where, you know, it, it does make a lot of sense where, you know, you might be able to save costs, but there's a lot of companies that aren't in your position that have these contracts or it's gonna take a lot longer. I'm just curious, have you heard anything about that? I don't know if you could say it, but it just seems like this industry is pretty much ripe for consolidation. There's just so See, yeah, I just wonder if one of these other guys will come to you and say, "Hey, you know what? If we're together, it'd be good because, the value that you have i-in that future, the next couple years, I mean, it's, it's, it's there, right? You have that contract in place, you have the power, you have all these companies in dire need of it. It's just a surprise to see that, you're in better shape than a lot of companies." Yeah. I don't know, maybe

Michelle Amard: Days basically, we, we'll get the, the attention of not only, larger companies but funds that are investing in the, in the space. So We, we are in a, in a great position today because we are just after the validation that We are credible and we are getting AI revenues, and just before the final execution where we're gonna get granted the, all the risk validation, a-and therefore the attention from, a-and then I think we'll get, our worth, in terms of, valuation

Frank: And I guess last question here is when it comes to these hyperscalers, we've seen Microsoft with Three Mile Island and say, "Hey, we wanna restart that, that's gonna take four years." I mean, the risks on that to get state, local, federal approval alone is gonna be difficult, and then they're buying out energy twenty years from now. So these guys aren't looking at tomorrow, they're looking at, anyone that has energy pretty much that could get online in the next five years, we'll sign long-term contracts. Are you seeing that as well? I mean, the How far out are they gonna look where, you know, you got the Alabama contract, but you see this growth and they see it. I mean, these guys are dying to lock it in. Are they hav- Do they have conversations like that? And again, I don't wanna, you know, hear if you can't say things or whatever, but I'm just curious, like being in that room, how do they talk to you and say, "Hey, let--" Do they say, "Hey, let us know when this is ready" or "Let us know this is ready," because they

Michelle Amard: So as much as you become credible and, and you got the validation, the risk goes down and you get further away in terms of planning. They'll give you three years, four years, five years plan because they, they believe that you're the right partner for execution. So, so we are getting to that point, soon where we'll get, you know, two thousand thirty, thirty-one, thirty-two plan, for our future, sites. I was reading, I think it was yesterday, SoftBank was, was saying that by two thousand and forty, five trillion a year will be spent in AI, so we're not going anywhere. And, and And you need to be, an executor. You need to be, experienced in building data centers. We've been building data centers for ten years, Tier one. Now we are building Tier three And not only we are building tier three, we are managing, you know, vertically the process. So we understand from, from a, a power plant generation, which not a, not a lot of our peers are managing power plants. I think we are one of a few And so we generate power, we convert power to a, to a, a setup, a data center, and then we process with the GPU servers, this data. So, I think we are, we are, we are pretty knowledgeable and, credible on, in the space, and From that point, all we have to do is copy and paste a-and execute. It's all we have to do, and, and we'll get the, valuation.

Frank: So I wanted to end with this because I've been covering SmallCaps for thirty years, and I think we have a relationship for a little over two years now, and to see so many companies I see this with, where people focus on the stock price, it's all, it is all about execution, and to hear you say that is amazing, 'cause all you've done since I've known you is execute. I mean, even with this contract, building this up, transitioning, everyone's like, "Yeah, okay, it's gonna take a while to transition tier one to tier three," you You're gonna see the ups and downs, as long as you execute, that value's eventually gonna be recognized. So I just wanna say, you know, we're in early, we're happy with everything that's going on. I wanna thank you, 'cause you've been executing on every single level, everything you promised you'd deliver on. So, and I know that stock price will actually follow. So I think this is gonna be a good update for, for investors and, and shareholders. But I really appreciate coming on and, and, and letting us know the catalyst coming up. I think

Michelle Amard: Thank you, Frank, and, appreciate your time. Thank you so much.

Speaker 2: Wall Street Unplugged is produced by Kersio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You shouldn't base your investment decisions solely on this broadcast. Remember, it's your money and your responsibility.