Duos Technologies and Axe Compute Sign Five-Year Agreements Reserving 55 MW of AI Data Center Capacity

by Thandi Mbeki · August 17, 2026

AI Companies Reporter, Frontier Tech Wire

Duos Technologies Group, Inc. (Nasdaq: DUOT) and Axe Compute Inc. (Nasdaq: AGPU) each announced on Monday morning, Aug. 17, that they had executed five-year hosting service orders reserving 55 megawatts of AI data center capacity across multiple U.S. locations. Duos states the value in its own release: "The agreements are valued at over $500 million, representing aggregate contractual base payments over their initial five-year terms, including annual escalators and excluding electricity and other usage-based charges." Axe Compute's release describes the same agreements as representing "over $500 million in expected aggregate payments for dedicated AI data center capacity across multiple U.S. locations." Both companies state their Nasdaq listings and tickers in those releases.

That figure is a five-year contractual total on capacity that has not been built, and none of it is billable today. Duos says initial project readiness "is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning, performance testing, and Axe Compute's written acceptance." It adds: "Billing under each agreement is subject to successful completion, ready-for-service testing, and Axe Compute's written acceptance of the applicable deployment." The agreements "reserve an aggregate of 55 MW of total facility capacity for Axe Compute and include renewal options and rights supporting potential future expansion." The companies are not disclosing the project locations at this time.

A second element of the arrangement sits alongside the hosting orders, and neither company describes it as binding. Duos says the two executed "nonbinding term sheets contemplating potential minority investments by Axe Compute in the special-purpose entities associated with the projects, with Duos expected to maintain majority ownership," and that those remain "subject to definitive documentation, satisfaction of closing conditions, and the respective approval processes." Axe Compute's release supplies the number, saying the companies "have executed nonbinding term sheets for minority investments by Axe Compute in the entities associated with the projects, with Axe Compute expected to hold 49% of the equity interests." "Nonbinding" is the word both releases use. On the terms described, Axe Compute would be both the customer under the hosting orders and a minority owner of the entities associated with the projects that supply the capacity it is renting — a related-party structure, disclosed by both companies in their own announcements. The term sheets are the only documents either release describes as existing.

Doug Recker, chief executive officer of Duos, said in the Duos release: "These executed agreements represent an important advancement of our AI infrastructure strategy and demonstrate our ability to translate development opportunities into long-term commercial relationships. Axe Compute brings a clear vision for deploying high-performance AI capacity at scale." In Axe Compute's release, Recker said: "Our work in Georgia established a strong foundation, and this expansion demonstrates the scale of the opportunity and the accelerating demand for AI infrastructure."

Chris Miglino, chief executive officer of Axe Compute, said in his own company's release: "When you find a partner that does a great job and you can trust, you want to do more business with them." In the Duos release he called the agreements "a significant milestone in the growth of Axe Compute's AI infrastructure platform," adding: "These projects are being designed around the density, cooling, and availability requirements of next-generation GPU systems."

After Monday's close, Duos reported results for the second quarter ended June 30, 2026. Total revenue was $6,175,423, against $4.77 million a year earlier. The release breaks the quarter out this way: "Total revenue for Q2 2026 represents an aggregate of approximately $3.23 million of Technology Solutions revenue, $2.91 million of Services and Consulting revenue, and approximately $.03 million of Hosting revenue." The hosting line is $32,549.

Those two numbers measure different things and cannot be set against each other. The quarter closed on June 30, seven weeks before the hosting agreements were signed, and by the terms of the agreements themselves no billing can begin until construction, ready-for-service testing and Axe Compute's written acceptance are complete — a window both companies place in late 2026 through early 2027. The $500 million is a five-year contractual base-payment total, excluding electricity and other usage-based charges, on capacity that is not yet in service. The $32,549 is three months of realized revenue on capacity that is.

The largest figure in the quarterly release is not an operating result. Duos reported net income before taxes of $53.64 million for the quarter, against a net loss before taxes of $1,617,530 a year earlier, and basic earnings per share of $1.61 against a loss of $0.14. The release supplies its own explanation: "The increase in net income was primarily attributable to the gain on sale of investments previously noted in connection with the sale of substantially all of New APR's assets." Duos says it received $50.4 million in proceeds from the sale of substantially all the assets of New APR Energy, LLC, in which it held a 5% minority stake, in May 2026. That is a one-time gain on an asset sale rather than income from operations.

The operating figures for the same quarter are much smaller, and the company prints them. Operating income was $49,093, against an operating loss of $1,540,182 in the second quarter of 2025, and gross margin was $3.45 million against $1,776,591. Those are GAAP measures. Duos separately reported adjusted EBITDA of $0.5 million for the quarter; adjusted EBITDA is a non-GAAP measure and is not the operating line. Cash and cash equivalents at June 30, 2026 totaled $112.31 million.

The half-year is weaker than the quarter. Revenue for the first six months of 2026 was $8,320,724, against $8,683,153 for the same period of 2025 — lower, not higher — with a six-month operating loss of $3.13 million against $2,072,747 a year earlier.

Duos reconfirmed its full-year expectation in the same release: "Based on these committed contracts and near-term pending orders that are already performing or scheduled to be executed throughout the course of 2026, the Company is reconfirming its expectation for total revenue in 2026 to exceed $50 million." Subtracting the company's own first-half figure from its own guidance — arithmetic done here, not by the company — leaves more than $41.6 million to be recognized in the second half. The release points to where it expects that to come from: "At the end of the second quarter, the Company's bookings represented approximately $43.5 million in revenue, of which all is expected to be recognized during the year." It adds that "Duos Technology Solutions continues to add new customers and has approximately $28 million in backlog so far in 2026."

Three megawatt figures appear in Monday's disclosures. They are defined differently and are not additive. The hosting orders reserve 55 MW of facility capacity for Axe Compute, with readiness targeted for late 2026 into early 2027. The quarterly release says: "The Company now has 25 MW contracted with all 25 MW planned for deployment in 2026." Among the quarter's highlights it lists: "Secured $111 million in contracted revenue with an investment-grade hyperscaler to provide 10 MW of critical IT-load capacity for five years at its Columbus, Georgia data center campus." Separately, Axe Compute's release says the new capacity "is in addition to the companies' 10 MW deployment at Duos' facility in Georgia, where Duos is in the process of delivering for Axe Compute." Two 10 MW references in Georgia appear in Monday's paperwork with different counterparties named — an unnamed investment-grade hyperscaler in one, Axe Compute in the other — and neither document says whether they describe the same campus. Capacity reserved, capacity contracted and capacity planned for deployment within a calendar year are three different conditions.

Duos also disclosed an "exclusive term sheet with 0Lat LLC for a proposed structured lease across a 15-site, 225-cabinet Edge Data Center portfolio in Texas and Georgia." That is a term sheet, not a lease.

Axe Compute's shares rose on the announcement. Google Finance showed AGPU at $10.62 as of 3:58 p.m. ET Monday, up $2.35 or 28.42% on the day; stockanalysis.com showed the same $10.62 and the same 28.42% gain timestamped 4:00 p.m. ET. The two providers gave materially different market capitalizations for the company, so none is reported here. No Monday price for DUOT is reported here either: the quote data available for it did not agree across providers.

The checkpoints from here are dated. Axe Compute's written acceptance and ready-for-service testing are what convert the reserved 55 MW into billable revenue, and both companies place that window in late 2026 through early 2027. The 49% equity interests depend on definitive documentation that neither company says exists yet. And the reconfirmed expectation of more than $50 million of 2026 revenue rests, on the company's own account, on bookings it says are already in hand.