AZIO AI Holdings (NASDAQ: AZIO) announced a power purchase and hosting agreement with Power Champion Investment Limited at its Atlas One compute infrastructure campus in South Texas. The agreement, detailed in a recent press release, establishes an initial contracted capacity of 10 megawatts (MW), with expansion rights up to 50 MW, subject to infrastructure improvements and other conditions.
Under the terms, AZIO AI will provide power, leased facility space, interconnectivity, and hosting services for artificial intelligence (AI) computing equipment. At the initial 10 MW capacity, the company expects approximately $1.5 million in monthly capacity reservation charges, totaling $90 million over the five-year initial term, excluding electricity sales and additional services. If fully expanded to 50 MW, the agreement could generate approximately $450 million in capacity reservation charges over the same period. This potential contract value underscores the significant revenue opportunity for AZIO as it scales its infrastructure to meet the growing demands of AI workloads.
The agreement marks the first hosting contract at Atlas One, a 548-acre campus designed for up to 500 MW of planned power capacity. Approximately 11 MW has been secured to date, including 6 MW currently activated. However, no capacity has yet been energized under the new agreement, and expansion beyond the initial 10 MW has not been exercised. Service commencement remains subject to infrastructure development, required U.S. export control approvals, and other contractual conditions. These contingencies highlight the execution risks but also the substantial upside if milestones are met.
For AZIO AI Holdings, formerly Envirotech Vehicles, Inc. (Nasdaq: EVTV), this deal represents a pivotal step in its transformation into a technology infrastructure company focused on developing, owning, and operating AI data centers, enterprise GPU compute infrastructure, and digital power solutions. Through Project Atlas, the company is developing behind-the-meter, power-backed campuses in Texas intended to support power-intensive compute workloads as additional generation, connectivity, customer commitments, and capital are secured.
The agreement with Power Champion Investment Limited signals confidence in AZIO's ability to deliver high-density hosting solutions at scale. As AI models grow in complexity and size, the need for specialized, power-efficient data center capacity is surging. By securing a anchor tenant at Atlas One, AZIO is positioning itself to capture a share of this expanding market. The deal also provides a template for future contracts, potentially accelerating the campus's buildout and attracting additional hyperscale and enterprise customers.
Investors and industry observers will be watching closely to see if AZIO can execute on the infrastructure buildout and secure the necessary approvals to energize capacity. The company's ability to convert this initial agreement into operational revenue will be critical to its growth trajectory. For more information, visit the company's newsroom at https://ibn.fm/AZIO. The full press release can be viewed at https://ibn.fm/7uT4q.
