Duos Technologies Group has signed five-year hosting service agreements with Axe Compute Inc. covering 55 megawatts of AI facility capacity across multiple U.S. data center sites, with the contracts valued at over USD 500 million in aggregate base payments over their initial terms.

Deal Details and Financial Terms

The agreements, announced on August 17, 2026, were executed between two of Duos' project entities and Axe Compute, a neocloud AI infrastructure platform listed on Nasdaq under the ticker AGPU.

The USD 500 million valuation represents aggregate contractual base payments across the five-year terms and includes annual escalators.

Electricity and other usage-based charges are excluded from that figure. Billing under each agreement is contingent on successful completion, ready-for-service testing, and written acceptance by Axe Compute of the applicable deployment.

The companies have not disclosed the locations of the data center projects at this time. Duos Technologies Group, based in Jacksonville, Florida, and listed on Nasdaq under the ticker DUOT, described the agreements as record contracts representing a significant commercial milestone in its strategy to develop and operate high-density AI infrastructure.

Project Timeline and Readiness

Initial project readiness is targeted to begin in late 2026 and continue into early 2027.

That timeline is subject to construction, commissioning, performance testing, and written acceptance from Axe Compute. The agreements reserve the full 55 megawatts of total facility capacity for Axe Compute and include renewal options along with rights supporting potential future expansion.

The projects are being designed around the density, cooling, and availability requirements of next-generation GPU systems, according to Axe Compute's chief executive officer Chris Miglino, who said the agreements represent a significant milestone in the growth of the company's AI infrastructure platform.

Doug Recker, chief executive officer of Duos, described the agreements as an important advancement of the company's AI infrastructure strategy and said they demonstrate the company's ability to translate development opportunities into long-term commercial relationships.

Recker added that the combination of Axe Compute's platform and Duos' infrastructure development and operating capabilities creates a strong foundation for the projects and potential future expansion.

Potential Equity Component

In connection with the hosting agreements, Duos and Axe Compute have also executed nonbinding term sheets that contemplate potential minority investments by Axe Compute in the special-purpose entities associated with the projects. Under that arrangement, Duos is expected to maintain majority ownership of those entities.

The companies were explicit that any such investments remain subject to definitive documentation, satisfaction of closing conditions, and the respective approval processes of both companies.

Neither company is obligated to complete the contemplated investments unless and until definitive agreements are executed.

About the Companies

Duos Technologies Group operates through two wholly owned subsidiaries, Duos Edge AI, Inc. and Duos Technology Solutions, Inc.

The company describes its focus as providing and managing modular data center colocation facilities and infrastructure solutions, with a strategic emphasis on scaling its edge data center platforms alongside a data center infrastructure solutions business that provides manufacturer-agnostic sourcing and fulfillment services.

Axe Compute, headquartered in Pittsburgh, Pennsylvania, positions itself as a neocloud AI infrastructure platform built on the premise that AI innovation should not be constrained by hardware choice or availability.

The company offers two core services: Axe Compute Access, which delivers high-performance GPU infrastructure across global locations, and Axe Compute Build, through which the company co-engineers, deploys, owns, and operates large-scale dedicated AI infrastructure.

Both offerings are supported by enterprise-grade service level agreements.

Significance for Both Parties

For Duos, which has been repositioning itself as a provider of edge data center solutions after its earlier work in rail inspection technology, the agreements represent the largest commercial contracts in the company's history under its current strategic direction.

The USD 500 million figure and 55-megawatt scale place the deals well above prior announcements from the company in its infrastructure buildout.

For Axe Compute, securing dedicated hosting capacity across multiple U.S. sites supports its stated model of delivering large-scale, dedicated AI compute capacity to enterprise customers and AI developers.

The company's Axe Compute Build offering specifically targets co-engineered, operator-owned infrastructure deployments of the type described in the Duos agreements.

The hosting service orders mark the formalization of a commercial relationship that could expand further, with the agreements explicitly incorporating renewal options and rights tied to potential future capacity growth beyond the initial 55-megawatt footprint.