Duos Technologies has announced AI and data-center agreements representing more than $611 million of contracted value tied to 65 MW of capacity, dramatically increasing the scale of the company’s commercial commitments as it completes its transformation into an AI infrastructure provider.
The larger component consists of five-year hosting agreements with Axe Compute covering 55 MW and valued at more than $500 million. Duos characterized the agreements as a major step in its strategy to develop and operate high-density AI infrastructure.
Separately, Duos secured $111 million of contracted revenue with an investment-grade hyperscaler for 10 MW of critical IT-load capacity over five years at its Columbus, Georgia, data-center campus. Combined with the Axe Compute agreements, those announcements represent at least 65 MW and more than $611 million of contractual value.
The 65 MW figure should be distinguished from Duos’ nearer-term deployment target. The company says it currently has 25 MW contracted for deployment during 2026, while the larger agreements provide a broader multiyear opportunity beyond that immediate buildout.
The contracts come as Duos completes a significant strategic repositioning. It sold its legacy rail technology subsidiary, allowing management to concentrate resources on Edge Data Centers and AI infrastructure through Duos Edge AI and Duos Technology Solutions.
Duos also strengthened its balance sheet to support that expansion. The company received $50.4 million from the sale of substantially all of New APR Energy’s assets and completed a $55 million registered direct offering with a single institutional investor.
The early financial effects of the repositioning began appearing in Q2. Revenue increased 30% to $6.18 million, including $3.23 million from Technology Solutions, while gross profit increased 94% to $3.45 million. Duos generated approximately $50,000 of operating income compared with a $1.54 million operating loss a year earlier, which it described as its first positive operating quarter as a data-center infrastructure company.
Cash and equivalents increased to $112.31 million from $15.47 million at the end of 2025. Together with more than $15.9 million of receivables and contract assets, Duos reported approximately $128.2 million of cash and expected short-term liquidity.
At the end of Q2, bookings represented approximately $43.5 million of revenue expected to be recognized during 2026, while Technology Solutions had approximately $28 million of backlog. Duos continues to expect more than $50 million of 2026 revenue and positive adjusted EBITDA for the full year.
KEY QUOTES:
“In the second quarter and over the last several weeks, we have made tremendous progress both in operational execution and the fundamental repositioning of our business as a standalone AI infrastructure provider. Financially, we began to see the early stages of the substantial performance ramp we expect to build over the course of this year, highlighted by a 30% increase in revenue and a material improvement in profitability. We also secured over $100 million in growth capital through two major transactions: a $55 million direct investment with a single institutional investor and an additional $50.4 million in proceeds resulting from New APR’s sale of substantially all its assets.
Operationally, we recently announced the successful divestiture of our legacy rail operations, which will now enable us to fully concentrate our resources on the Edge Data Center and AI infrastructure businesses. We also agreed to terms on a new $111 million, 10 MW contract with an investment-grade hyperscaler to provide critical IT-load capacity, adding to our already-substantial backlog and supporting our reaffirmed outlook to provide 25 MW of compute and generate north of $50 million in revenue by the end of this year.”
Doug Recker, CEO of Duos Technologies
