Digi Power X Secured $200 Million for Alabama Facility
The debt financing supports the expansion of an AI-focused data center campus set to complete its first phase in December.
Updated on Oct. 13, 2026 in Data Centers
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Digi Power X has secured a $200 million debt financing commitment, led by Goldman Sachs, to fund the development of its Alabama AI data center project. This capital injection is structured as project-level debt with a corporate guarantee, aimed at preserving liquidity as the company scales its infrastructure.
Why it matters
The funding allows Digi Power X to complete its Alabama campus construction while avoiding further shareholder dilution through equity issuance. It highlights the trend of utilizing project-specific financing vehicles to meet the high capital intensity required for modern AI data center deployments.
The firm, which already operates its ARMS 200 modular data center technology as of May 2026, is directing these funds to build out capacity at the Alabama campus. This project adds to the existing infrastructure portfolio held by the company's majority-owned entity, US Data Center.
The players
Digi Power X
An infrastructure developer that builds modular, high-density data centers for AI workloads.
Goldman Sachs
A global investment banking firm acting as the lead syndicator for the new debt facility.
US Data Center
A specialized infrastructure firm majority-owned by Digi Power X that focuses on site operations.
The details
The debt is structured at the level of a project special purpose vehicle—a legal entity created to isolate financial risk—and is backed by an unsecured corporate guarantee. This method allows the company to tap into specialized credit markets while shielding its broader balance sheet. The Alabama campus relies on the company's proprietary ARMS 200 architecture, a modular design approach that enables rapid deployment of AI-ready server density.
Timeline
May 2026: The first ARMS 200 modular data center began operating.
Q3 2026: Digi Power X issued no shares under its at-the-market equity program.
October 13, 2026: The company announced the debt financing commitment.
December 2026: Completion expected for Phase 1 of the Alabama campus.
March 2027: Completion expected for Phase 2 of the Alabama campus.
The Tech Race
Digi Power X is navigating the intense capital race required to scale AI infrastructure against competitors deploying similar high-density modular units. This financing positions the firm to meet its 2026 and 2027 operational milestones without resorting to additional equity raises.
The immediate impact of this funding is the stabilization of construction timelines for the Alabama site, ensuring capacity remains on track for regional AI users. Residents and local businesses should anticipate increased infrastructure activity as the project moves through its final two phases.
The takeaway
Digi Power X has managed to secure necessary expansion capital while avoiding equity dilution for current shareholders. Investors and industry observers should track the completion of Phase 1 in December 2026 as a performance benchmark for the company's ARMS 200 modular deployment strategy.
What happens next
Phase 1 of the Alabama data center is scheduled for completion in December 2026, followed by the completion of Phase 2 in March 2027.
Further reading
For more on the hardware and energy requirements of modern AI infrastructure, browse our Data Centers section.
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