Duos Technologies said that the agreements cover an aggregate 55 MW of AI facility capacity across multiple U.S. data center sites
- Duos added that these deals also include annual escalators and exclude electricity and other usage-based charges.
- The company said that the initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning and performance testing.
- Duos CEO Doug Recker added that the combination of Axe Compute’s platform and Duos’ infrastructure capabilities provides a strong foundation for potential future expansion.
Shares of Duos Technologies Group Inc. (DUOT) surged in Monday’s opening trade after the company announced five-year hosting agreements with Axe Compute Inc. (AGPU) covering 55 megawatts of AI data center capacity.
The agreements are valued at more than $500 million in aggregate contractual base payments, a figure that is more than 18 times Duos’ 2025 revenue of $27.02 million.
Duos shares were up more than 15% in Monday’s opening trade, while Axe Compute shares gained more than 10%. DUOT was among the top trending tickers on Stocktwits at the time of writing.
DUOT’s $500M Contract With A Five-Year Runway
The agreements cover an aggregate 55 MW of AI facility capacity across multiple U.S. data center sites. Duos added that these deals also include annual escalators and exclude electricity and other usage-based charges.
Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning and performance testing.
“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 Duos CEO Doug Recker.
The partnership gives Duos a major customer for its strategy of developing and operating high-density AI infrastructure. Axe Compute provides dedicated GPU capacity to enterprises and AI companies through its Axe Compute Access and Axe Compute Build offerings.
Billing under each agreement is subject to successful completion, ready-for-service testing, and Axe Compute’s written acceptance of the applicable deployment.
AGPU Could Expand Its Relationship With DUOT
Axe Compute CEO Chris Miglino said the projects are being designed around the “density, cooling, and availability requirements of next-generation GPU systems.” The companies have also signed non-binding term sheets contemplating potential minority investments by Axe Compute in the project entities, with Duos expected to maintain majority ownership.
The agreements also reserve 55 MW of total facility capacity for Axe Compute and include renewal options and rights supporting potential future expansion.
Recker added that the combination of Axe Compute’s platform and Duos’ infrastructure capabilities provides a strong foundation for potential future expansion.
What Retail Traders Think Of DUOT Stock
Retail sentiment on Stocktwits around Duos trended in the ‘bullish’ territory, with message volumes at ‘high’ levels at the time of writing.
DUOT stock is down 9% year-to-date, while AGPU stock is up 28% over the past 12 months. The Themes Generative Artificial Intelligence ETF (WISE) is down 5% over the past 12 months, while the iShares Micro-Cap ETF (IWC) is up 45%.
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