Shelby County data center campus signs $1B deal with AI company

A major shift is coming to the Shelby County technology landscape. Miami-based data center infrastructure firm DigiPower X has secured a massive $1.1 billion deal with a California-based artificial intelligence company, as announced in early May. The agreement centers on a 40-megawatt colocation contract with Cerebras Systems, marking a significant milestone for the Columbiana facility.

A Transformational Anchor Contract

Under the terms of the deal, Cerebras will rent space at the Columbiana campus to house its computing hardware rather than taking full ownership of the facility. The agreement spans an initial 10-year term, with potential for that valuation to climb to $2.5 billion if the contract is renewed.

"This agreement is transformational for Digi Power X," said Michael Amar, the company’s CEO and chairman. "Signing a $1.1 billion anchor contract with a premier AI compute company is validation of everything we have built—our team, our sites, our infrastructure capabilities, and our vision for what a next-generation data center operator looks like."

Development and Local Friction

DigiPower X has been actively working since January to transform the Industrial Parkway property—originally slated for bitcoin mining—into a 70-megawatt data center campus. The site sits off Highway 70 and was previously zoned for manufacturing.

The project has faced a rocky road with local officials. On May 5, the Columbiana City Council voted unanimously to deny the company's request for property tax cuts, according to city clerk Charlene Tucker. This followed earlier local outcry regarding environmental concerns and a non-disclosure agreement signed between the company and the town's former mayor. In response to community concerns, the city amended its zoning ordinance in February to establish stricter standards for data center developers.

Construction and Future Outlook

DigiPower X maintains that the Columbiana location was chosen specifically for its proximity to major fiber corridors and its access to robust power infrastructure. The company has already completed a substation on-site, which is linked to the grid through an agreement with Alabama Power.

Immediate construction is slated for the first 15-megawatt phase, with a target completion date of Dec. 15. A subsequent phase will add 25 megawatts, with the entire facility expected to be fully functional by spring 2027.

The financial impact of the project is already evident. According to the company's Q1 2026 financial report, investment in the Columbiana campus helped boost company assets by 30% compared to March 2025. The buildout accounted for the majority of the firm's $45 million in capital expenses during the first quarter of this year. Beyond its Alabama operations, DigiPower X manages infrastructure projects in New York and North Carolina.