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. 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. This figure excludes electricity sales and additional services. If the expansion to 50 MW is fully exercised, the agreement could generate approximately $450 million in capacity reservation charges over the same period. The potential scale of the contract underscores the growing demand for specialized infrastructure to support power-intensive AI workloads.
This agreement marks the first hosting contract at Atlas One, a 548-acre campus designed for up to 500 MW of planned power capacity. 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.
The deal is significant because it validates AZIO AI's strategy of developing behind-the-meter, power-backed campuses in Texas. As AI models grow in complexity and size, the need for reliable, high-density compute infrastructure has surged. By securing a long-term hosting agreement, AZIO AI is positioning itself as a key player in the AI infrastructure space, potentially attracting further customers to Atlas One. The expansion rights provide a clear pathway for scaling revenue if demand materializes, but the conditions highlight the execution risks involved.
AZIO AI Holdings, formerly Envirotech Vehicles, Inc. (Nasdaq: EVTV), focuses on developing, owning, and operating AI data centers, enterprise GPU compute infrastructure, digital power solutions, and other high-compute operations. Through Project Atlas, the company is developing behind-the-meter, power-backed campuses in Texas intended to support power-intensive compute workloads as additional generation, connectivity, customer commitments, and capital are secured.
Investors can view the full press release at https://ibn.fm/7uT4q and find the latest news and updates relating to AZIO in the company's newsroom at https://ibn.fm/AZIO. The original release is also available on www.newmediawire.com.
Forward-looking statements in the announcement involve risks and uncertainties that could cause actual results to differ materially. These include factors beyond management's control, as detailed in the company's SEC filings. Undue reliance should not be placed on these statements when making an investment decision.
