Duos Technologies Signs $500 Million, 55 MW Hosting Deals with Axe Compute
Duos Technologies Group (Nasdaq: DUOT) has signed five-year hosting service orders with Axe Compute (Nasdaq: AGPU) covering 55 megawatts of AI facility capacity across multiple U.S. data center sites. The Jacksonville-based modular edge data center operator said the agreements are valued at more than $500 million in contractual base payments over their initial five-year terms.
That figure includes annual escalators and excludes electricity and other usage-based charges. Billing under each agreement starts only after ready-for-service testing and written acceptance by Axe Compute. Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning, performance testing and customer acceptance. Site locations have not been disclosed.
Axe Compute is a Pittsburgh-based neocloud platform that sells dedicated enterprise GPU capacity through two offerings: Axe Compute Access, which provides high-performance GPU infrastructure across global locations, and Axe Compute Build, under which the company co-engineers, deploys, owns and operates large-scale dedicated AI infrastructure. The Duos agreements reserve aggregate facility capacity for that platform and include renewal options plus rights supporting potential future expansion.
“These executed agreements represent an important advancement of our AI infrastructure strategy and demonstrate our ability to translate development opportunities into long-term commercial relationships,” said Doug Recker, Chief Executive Officer of Duos. “Axe Compute brings a clear vision for deploying high-performance AI capacity at scale.”
Chris Miglino, Chief Executive Officer of Axe Compute, said the projects are being designed around the density, cooling and availability requirements of next-generation GPU systems. “We align with partners that can deliver on efficient timeframes at the highest quality for our customers.”
Possible project-level investment
Alongside the hosting orders, the companies have signed nonbinding term sheets contemplating potential minority investments by Axe Compute in the special-purpose entities associated with the projects. Duos is expected to keep majority ownership. Neither company is obligated to complete those investments unless and until definitive agreements are executed.
The deal is a commercial milestone for Duos’ strategy to develop and operate high-density AI infrastructure through its Duos Edge AI and Duos Technology Solutions subsidiaries. For Axe Compute it adds reserved U.S. capacity as neocloud operators race to lock in power, cooling and ready-for-service dates for GPU clusters that now routinely push well beyond traditional colocation densities.
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