AZIO AI Signs First Hosting Agreement at Atlas One with Power Champion for 10 MW, with Expansion Rights to 50 MW

AZIO AI Holdings, Inc. (Nasdaq: AZIO) has executed its first hosting agreement at Atlas One, its South Texas compute infrastructure campus, marking a pivotal step in the company's effort to convert large-scale power capacity into contracted, revenue-generating infrastructure for AI workloads. The agreement with Power Champion Investment Limited covers power delivery, leased facility space and interconnectivity services, establishing an initial contracted capacity of 10 MW with contractual expansion rights of up to 50 MW, subject to infrastructure completion and other conditions.

The deal represents a significant milestone for AZIO AI, which announced on August 27, 2026, that it was in discussions with Power Champion regarding potential hosting at the campus but had not yet entered into any agreement. The newly signed Power Purchase and Hosting Agreement concludes those discussions and does not amend, replace or supersede a separate power purchase and hosting agreement with Power Champion announced on July 9, 2026, which covers a different site.

Under the agreement, AZIO AI will serve as Power Champion's exclusive power supplier at the leased premises and will provide hosting, interconnectivity and related infrastructure services supporting Power Champion's deployment of AI GPU processors and associated advanced computing equipment. Capacity reservation charges are set at $150.00 per kilowatt per month of contracted capacity actually delivered and made available, with Power Champion not obligated to pay reservation charges on capacity that has not been energized. The fixed energy rate is $0.13 per kWh for metered consumption during the initial term, plus pass-through utility, transmission, regulatory and tax charges billed at cost without markup.

At the initial 10 MW capacity, AZIO AI expects the agreement to generate approximately $1.5 million per month, or approximately $90 million in capacity reservation charges over the 60-month initial term, before electricity sales and additional infrastructure services. If Power Champion were to exercise its expansion rights in full to 50 MW and all required infrastructure were completed, the company estimates capacity reservation charges could total approximately $450 million over the initial term, before electricity sales and additional infrastructure services. The company emphasized that the $450 million figure represents charges payable only if expansion rights are fully exercised, all required infrastructure is completed and all such capacity is energized, and that as of the date of the announcement, no capacity has been energized and no expansion right has been exercised.

Chris Young, Chief Executive Officer and Chairman of AZIO AI, framed the agreement as a direct response to market skepticism. "On August 27 we told the market we were in discussions with Power Champion about hosting at Atlas One, and that we would announce an agreement if we reached one," he said. "This is that agreement. Atlas One has a contracted customer." Young added that "power is the constraint on AI" and described the deal as "what converting power into contracted capacity looks like — sites, systems, hosting, and the electricity underneath it, under one roof." He also cautioned that reaching 50 MW depends on generation, permitting, capital and Power Champion's own export approvals, "none of which we take for granted."

Atlas One, announced on August 20, 2026, spans more than 548 acres in South Texas and is engineered for up to 500 MW of planned behind-the-meter power capacity under the company's Project Atlas initiative. Approximately 11 MW of that planned capacity has been secured to date, of which approximately 6 MW is activated. The balance of the campus's planned capacity — including the capacity required to serve the full initial contracted capacity and any expansion beyond it — will require additional generation, equipment, permitting, financing and customer commitments.

The agreement is subject to material conditions, including U.S. export control approvals. AZIO AI's hosting and power obligations are expressly conditioned on Power Champion obtaining all required U.S. government approvals, licenses and clearances, including from the Bureau of Industry and Security, for the purchase, import, deployment and operation of AI GPU processors at the facility under the U.S. Export Administration Regulations and other applicable regulatory frameworks. If any required approval is denied or revoked, either party may terminate without liability. Power Champion also has a 180-day due diligence period during which it may terminate only if a qualified third-party engineering assessment concludes the facility cannot be made capable of delivering the initial contracted capacity through commercially reasonable site qualification work. A separate lease agreement, customer build-out scope and budget, detailed delivery milestone schedule and final deposit amounts remain subject to further written agreement.

The agreement does not obligate Power Champion to deploy any systems at Atlas One under the company's previously announced GPU pipeline covering up to 512 NVIDIA HGX B300 systems, which AZIO AI has characterized as estimated sales pipeline value and not as backlog, contracted amounts, orders or revenue. The capacity contracted under the agreement and the GPU sales pipeline measure different things and are not additive. The company also noted that capacity reservation figures are not backlog, bookings, contracted revenue or a revenue forecast, and are presented before electricity sales and additional infrastructure services. Additional terms will be described in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.