Digi Power X enters LOI for Omnis partnership

Executive Summary

• Digi Power X Inc. has entered into a non-binding Letter of Intent (LOI) with Omnis Pleasants LLC to pursue a strategic partnership involving the Pleasants Power Station, a 1.3-gigawatt power generation facility in West Virginia.
• The partnership aims to support large-scale artificial intelligence and high-performance computing infrastructure through a comprehensive load and interconnection study, a potential long-term land lease, and equity alignment.
• Key components include a mutual equity exchange, a pathway for Digi Power X to acquire an equity stake exceeding 10% in the power plant entity, and a collaboration on a hydrogen transition feasibility study for Digi Power X's New York assets.

Key Details

• Counterparty: Omnis Pleasants LLC, owner of the Pleasants Power Station.
• Asset Details: Pleasants Power Station is a 1.3-gigawatt power generation facility located in West Virginia.
• LOI Terms:
  • Study: Parties intend to conduct a comprehensive load and interconnection study of up to 1.3 gigawatts to evaluate long-term power availability and grid connectivity for energy-intensive computing applications.
  • Land Lease: Contemplates a long-term lease of up to 200 acres of land for Digi Power X to deploy AI and advanced computing infrastructure using its proprietary ARMS modular Tier 3 data centre platform.
  • Equity Alignment: Framework for a mutual equity exchange based on fair market valuation.
  • Acquisition Pathway: Defined pathway for Digi Power X to acquire an equity ownership stake in excess of 10% in the power plant entity, subject to definitive documentation, agreed valuation, financing structure, and regulatory approvals.
  • Hydrogen Study: Collaboration on a hydrogen transition feasibility study for Digi Power X's New York power assets to support decarbonization initiatives.
• Timeline:
  • Initiation of the load study: Within 30 days.
  • Target execution of definitive agreements: Approximately 90 days (subject to customary conditions and approvals).
• Strategic Rationale: To pair large-scale, grid-connected power assets with next-generation AI infrastructure, leveraging Pleasants' scale, land availability, and electrical infrastructure.

Notable Quotes

• "This strategic partnership will advance our strategy of pairing large-scale, grid-connected power assets with next-generation AI infrastructure," said Michel Amar, chief executive officer of Digi Power X. "Pleasants offers the scale, land availability and electrical infrastructure required to support AI and high performance computing at meaningful, long-term levels."