Duos Technologies signs 10-year hosting deal worth more than $400 million
Key Facts
Duos Technologies announced a data center hosting agreement with an established, publicly traded U.S. cloud services company worth more than $400 million over its initial term. The company said in its announcement that the contract runs for 10 years and covers 20 megawatts of facility power load. The announcement coincides with management's participation in the LD Micro conference in October and follows other hosting agreements signed during the year. Chief Executive Doug Recker attributed the developments to growing customer demand for "power-dense" infrastructure that can be deployed quickly. The agreement forms part of the company's expansion into compute hosting sites, alongside its shift toward owning and operating infrastructure and power.
Alongside the customer agreement, Duos said powered land zoned for data center use, with capacity of approximately 25 megawatts, was already under contract. The land spans multiple U.S. locations within the portfolio of sites the company is working to secure. It is also negotiating for additional land with capacity of 75 megawatts, ahead of finalizing those agreements. The company bases site development on demonstrated customer demand before allocating substantial capital. It described this as a "contract-first" approach, securing demand before committing to major site investments.
Duos Edge AI previously signed a contract in July 2026 with an investment-grade high-performance computing company to provide 10 megawatts of critical IT load. That contract covers the Columbus campus in Georgia and was worth more than $111 million over 5 years. In August, Duos announced additional hosting agreements with xCompute covering total capacity of 55 megawatts. Those agreements were worth more than $500 million over their initial 5-year terms, according to the company's announcement. The stated value of the xCompute agreements excludes electricity charges and other usage-related fees, under the terms of the announcement.
On its business structure, Duos sold the entity providing graphics processing units as a service to xCompute. It shifted its strategy toward owning and operating hosting sites, power and infrastructure, according to the sale announcement. The company said the transaction removed approximately $98.1 million in anticipated GPU equipment financing obligations. Duos will receive $42.9 million for the entity, according to the same statement. The consideration is payable in regular monthly installments over 60 months, spreading collection of the sale proceeds over the specified repayment period.
In its financial results, Duos reported total revenue of $6.18 million for the second quarter of 2026, according to its earnings statement. Revenue rose 30% from the same period a year earlier. The company had reported revenue of $4.77 million for the second quarter of 2025. Hosting revenue was approximately $0.03 million in the fiscal quarter, reflecting the business's small revenue base before deployment of the large contracts announced. The company's quarterly report showed a cash balance of $112,308,012 at the end of June 2026.
Alongside the announcement, Duos management's presentation at the LD Micro conference was scheduled for October 20 at 1:00 p.m. Pacific time. The company said the presentation would be available to stream and replay. On land acquisition, Duos aims to finalize all site agreements by the end of the current year, according to the announcement of the new agreement. Site transactions under contract remain subject to due diligence and closing conditions before completion. The company expects deployment under the new hosting agreement across its Edge AI campus portfolio in the second quarter of 2027.