Duos Technologies Group has signed a $500 million AI hosting agreement with Axe Compute Inc. covering 55 megawatts of data center capacity, marking the largest contract the Nasdaq-listed company has publicly disclosed since shifting its strategy to modular edge data centers. The deal extends a rapid contract streak for both companies in 2026 as demand for GPU compute and colocation (renting powered data center space) continues to run ahead of available capacity. Duos, based in Jacksonville, Florida, completed its transition to a pure-play AI infrastructure provider after divesting its rail subsidiary on June 30, 2026. It had already announced a separate five-year colocation agreement worth more than $111 million for 10 MW in July 2026 and previously disclosed a letter of intent valued at between $176 million and $200 million, bringing its announced contract value to close to $1 billion within months when combined with the new Axe Compute deal. Axe Compute, which describes itself as a GPU-as-a-Service provider, had reported by July 22, 2026 that it secured more than $1.3 billion in signed AI infrastructure contracts, above its full-year target. The arrangement pairs Duos’ power and facility buildout with Axe Compute’s GPU hardware and enterprise customer demand. The next test for Duos is execution as it plans to bring an additional 10 MW online between October and November 2026 after adding 2 MW of operational capacity in July, while Axe Compute must show it can fulfill contracted demand through hardware procurement and infrastructure delivery. The article also notes that revenue from multi-year hosting contracts is typically recognized over time rather than upfront, meaning annual revenue will depend on terms such as ramp schedules, pricing escalators, and performance conditions.