Duos Signs 20MW, 10-Year Colocation Deal Over $400m

Duos Technologies, a Jacksonville company that builds modular data centres, has signed a decade-long tenant for its AI campuses. In a release on 20 October, it announced a 10-year colocation agreement for 20MW of facility load with what it calls “a mature publicly traded Cloud Services Provider in the United States”.

The company puts the deal at “over $400 million of total contract value over the initial term”. It did not name the customer. The capacity is “expected to be deployed in Q2 2027” within the group’s Duos Edge AI campuses, though the release does not say which site will host it.

Hunting for another 100MW of land

Alongside the contract, Duos says it is chasing roughly 100MW of additional powered land already zoned for data centres across several US sites. About 25MW of that is under contract, and the company is “in active negotiations” on the other 75MW. It expects to finalise all of the site agreements by the end of the year.

Those land deals are less certain than the headline contract. Duos’s own forward-looking statement warns that “negotiations, letters of intent and term sheets are not definitive agreements and may not result in completed transactions”, and that sites under contract remain subject to diligence and closing conditions.

Contract first, build second

Chief executive Doug Recker presented the deal as evidence of demand for capacity that can be stood up quickly. “These developments reflect the increasing demand we are seeing from customers seeking scalable, power-dense infrastructure that can be deployed quickly and efficiently,” he said.

The company describes its approach as contract-first. It aims to line up customer demand for a site before committing much capital, rather than building speculative space and then hunting for tenants. As an example of its pace, Duos says its live campus in Columbus, Georgia, went from acquisition to 7MW of installed infrastructure in about 60 days, and that the new sites were screened against the same standard.

Duos, listed on Nasdaq and based in Jacksonville, sells its data centres under the Duos Edge AI brand and builds them on what it calls the Duos Modular Architecture. It says it targets “underserved Tier 3 and Tier 4 markets” for distributed digital infrastructure, and also runs a separate sourcing business, Duos Technology Solutions, that supplies equipment for data-centre deployments. Recker said the company believed it was “well positioned to quickly expand our customer base and increase contracted revenue” as AI, cloud and enterprise computing needs grow.

A big step up

The release does not break the “over $400 million” down by year, and says nothing about renewal options beyond the initial term. The more telling detail may be the 20MW itself. For a company whose live Georgia campus has 7MW installed, a single 20MW tenant is a large step, and delivering it on time in the second quarter of 2027 is the obvious test.