Operations Update

Flagship buildout on track. Construction of the Company's purpose-built AI data center campus is progressing on schedule. The first phase remains on track for a ready-for-service date of December 2026, with the second phase expected to come online by the end of the first fiscal quarter of 2027. Crews are currently erecting the building shell, marking a significant construction milestone as the project transitions from site and civil work to vertical construction.

All long-lead equipment secured. Commitments are now in place for every major long-lead item needed to complete Phase 1, including the critical electrical and switchgear infrastructure. Locking in this equipment mitigates a significant scheduling risk and keeps the buildout aligned with the Company's targeted in-service date.

NeoCloudz live and generating AI revenues. NeoCloudz, the Company's GPU-as-a-Service platform, has run AI workloads without interruption on its live fleet of NVIDIA B200 and B300 GPUs since the second quarter of 2026. The platform contributed to the Company's first AI-related revenues during the past quarter. To support the growth of the platform, the Company expects to open a Silicon Valley office by August 2026 and is building out a dedicated engineering team for its GPU-as-a-Service business.

Project financing moving forward. In keeping with its stated preference for non-dilutive debt to fund growth, the Company is putting project-level financing in place to underwrite its data center buildout. Further details are expected once definitive documentation is finalized.

Strong, self-funded financial position. Beyond the anticipated project financing, the Company is advancing its expansion using internal resources and striving to sustain a healthy cash balance while directing capital into the Company's Alabama site. Additional details appear in the remarks from the Company's Chief Financial Officer below.

"We continue to be in a position to fund our rapid expansion internally," said Paul Ciullo, Chief Financial Officer of Digi Power X. "As of July 3, 2026, the Company had approximately $155 million in cash and cash equivalents, with roughly $95 million of capital already deployed into our Alabama site year-to-date, entirely from our own resources. We remain focused on advancing our growth plan without compromising our balance sheet as we finalize project-level financing for the next phase."

Current Financial Position (as of July 3, 2026)

Cash and cash equivalents: approximately $155 million

Year-to-date capital expenditures (Columbiana): approximately $95 million

Long-term debt: none

"We continue to execute on our growth strategy and Tier 3 data center development plans," said Michel Amar, Chief Executive Officer of Digi Power X. "Our team remains focused on delivering the milestones ahead of us - advancing our purpose-built AI data center campus toward its ready-for-service targets, scaling the NeoCloudz platform, and building the Tier 3 infrastructure needed to meet accelerating demand for AI compute. We remain confident in our strategy and are executing on our plans with discipline."

US Data Centers Inc. Update

Digi Power X is a major shareholder of US Data Centers Inc. ("US Data Centers"), which develops and commercializes the ARMS modular data center platform. The Company confirms that the ARMS 200 modular unit has been live and operating successfully at Tier 3 standards at the Company's Alabama facility since May 15, 2026, and has been generating AI-related revenues for Digi Power X since that date.

2027 Outlook

For fiscal 2027, Digi Power X is targeting an annualized run rate of approximately $250-$300 million across its three operating segments:

AI colocation. Revenue from the Colocation Agreement is expected to contribute approximately $80-$100 million, reflecting a full year of Phase 1 operations and a partial year of Phase 2 following its targeted commissioning (40 MW). The Company is targeting an aggregate of 90 MW of AI colocation for fiscal 2027 (50 MW in addition to the Colocation Agreement), for aggregate colocation revenues of up to approximately $200 million.

GPU-as-a-Service (NeoCloudz). Revenue is expected to scale over the course of the year toward approximately 10 MW of deployed capacity, targeting a year-end annualized run rate of up to approximately $100 million as additional GPU capacity is brought online.

Energy sales. Expected to contribute approximately $12 million.

These targets are subject to execution, customer ramp, financing availability and the other factors described under "Forward-Looking Statements" below.