Mr. Michel Amar reports

DIGI POWER X PROVIDES OPERATIONS AND FINANCIAL UPDATE

Digi Power X Inc. has provided an update on operations and its financial position.

Operations update:

• Flagship buildout on track: Construction of the company's purpose-built artificial intelligence data centre campus is progressing on schedule. The first phase remains on track for a ready-for-service date of December, 2026, with the second phase expected to come on-line by the end of the first fiscal quarter of 2027. Crews are currently erecting the building shell, marking a significant construction milestone, as the project transitions from site and civil work to vertical construction.
• All long-lead equipment secured: Commitments are in place for every major long-lead item needed to complete phase 1, including the critical electrical and switchgear infrastructure. Locking in this equipment mitigates a significant scheduling risk and keeps the buildout aligned with the company's targeted in-service date.
• NeoCloudz live and generating AI revenues: NeoCloudz, the company's GPU-as-a-service platform, has run AI workloads without interruption on its live fleet of Nvidia B200 and B300 GPUs since the second quarter of 2026. The platform contributed to the company's first AI-related revenues during the past quarter. To support the growth of the platform, the company expects to open a Silicon Valley office by August, 2026, and is building out a dedicated engineering team for its GPU-as-a-service business.
• Project financing moving forward: In keeping with its stated preference for non-dilutive debt to finance growth, the company is putting project-level financing in place to underwrite its data centre buildout. Further details are expected once definitive documentation is finalized.
• Strong, self-financed financial position: Beyond the anticipated project financing, the company is advancing its expansion using internal resources and striving to sustain a healthy cash balance while directing capital into the company's Alabama site. Additional details appear in the remarks from the company's chief financial officer below.

"We continue to be in a position to fund our rapid expansion internally," said Paul Ciullo, chief financial officer of Digi Power X. "As of July 3, 2026, the company had approximately $155-million in cash and cash equivalents, with roughly $95-million of capital already deployed into our Alabama site year to date, entirely from our own resources. We remain focused on advancing our growth plan without compromising our balance sheet as we finalize project-level financing for the next phase."

Current financial position (as of July 3, 2026):

• Cash and cash equivalents: approximately $155-million;
• Year-to-date capital expenditures (Columbiana): approximately $95-million;
• Long-term debt: none.

"We continue to execute on our growth strategy and Tier 3 data centre development plans," said Michel Amar, chief executive officer of Digi Power X. "Our team remains focused on delivering the milestones ahead of us -- advancing our purpose-built AI data centre campus toward its ready-for-service targets, scaling the NeoCloudz platform and building the Tier 3 infrastructure needed to meet accelerating demand for AI compute. We remain confident in our strategy and are executing on our plans with discipline."

U.S. Data Centers Inc. update

Digi Power X is a major shareholder of U.S. Data Centers, which develops and commercializes the ARMS modular data center platform. The company confirms that the ARMS 200 modular unit has been live and operating at Tier 3 standards at the company's Alabama facility since May 15, 2026, and has been generating AI-related revenues for Digi Power X since that date.

2027 outlook

For fiscal 2027, Digi Power X is targeting an annualized run rate of approximately $250-million to $300-million across its three operating segments:

• AI co-location: Revenue from the co-location agreement is expected to contribute approximately $80-million to $100-million, reflecting a full year of phase 1 operations and a partial year of phase 2 following its targeted commissioning (40 megawatts). The company is targeting an aggregate of 90 MW of AI co-location for fiscal 2027 (50 megawatts in addition to the co-location agreement), for aggregate co-location revenues of up to approximately $200-million.
• GPU-as-a-service (NeoCloudz): Revenue is expected to scale over the course of the year toward approximately 10 megawatts of deployed capacity, targeting a year-end annualized run rate of up to approximately $100-million as additional GPU capacity is brought on-line.
• Energy sales: expected to contribute approximately $12-million.

About Digi Power X Inc.

Digi Power X is an AI infrastructure company, operating a vertically integrated portfolio of power assets and data centre capacity across Alabama, New York and North Carolina. The company's NeoCloudz platform delivers GPU as a service on dedicated, bare metal Nvidia infrastructure.

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