AZIO AI Holdings (NASDAQ: AZIO) announced a power purchase and hosting agreement with Power Champion Investment Limited at its Atlas One compute infrastructure campus in South Texas, marking the first hosting contract for the 548-acre site. The deal establishes an initial contracted capacity of 10 megawatts (MW), with expansion rights up to 50 MW, subject to infrastructure improvements and other conditions.
Under the agreement, AZIO AI will provide power, leased facility space, interconnectivity, and hosting services for artificial intelligence (AI) computing equipment. At the initial 10 MW capacity, the company expects approximately $1.5 million in monthly capacity reservation charges, totaling $90 million over the five-year initial term, excluding electricity sales and additional services. If fully expanded to 50 MW, the contract could generate approximately $450 million in capacity reservation charges over the same period.
The Atlas One campus is designed for up to 500 MW of planned power capacity, and approximately 11 MW has been secured to date, including 6 MW currently activated. However, no capacity has yet been energized under the new agreement, and expansion beyond the initial 10 MW has not been exercised. Service commencement remains subject to infrastructure development, required U.S. export control approvals, and other contractual conditions.
This agreement underscores the surging demand for AI compute infrastructure and the critical role of power-backed data centers in supporting power-intensive workloads. For AZIO AI Holdings, formerly Envirotech Vehicles, Inc., the contract represents a significant step in its pivot to developing and operating AI data centers, enterprise GPU compute infrastructure, and digital power solutions. The potential $450 million value highlights the scale of opportunity in the AI hosting market, where access to reliable, large-scale power is a key differentiator.
Investors and industry observers should note that while the agreement is a positive development, it is subject to risks and uncertainties, including those outlined in the company's SEC filings. Forward-looking statements regarding the contract's full value and expansion are not guarantees of future performance. The company's ability to secure additional customers and financing will be crucial as it develops the Atlas One campus.
For more details, the full press release is available at https://ibn.fm/7uT4q, and the latest news and updates relating to AZIO can be found in the company's newsroom at https://ibn.fm/AZIO. The original release was distributed by NEWMEDIAWIRE.
