Duos Technologies Group, Inc. (Nasdaq: DUOT) has announced a significant milestone in its business operations by executing a definitive agreement with Hydra Host, Inc. This contract, which follows a previously disclosed letter of intent, involves the deployment of a high-density NVIDIA GPU cluster for a leading global technology company. The agreement is expected to generate approximately $176 million in revenue over a 36-month term, with an initial customer pre-payment of $18 million. The projected gross margins are anticipated to exceed 80%, and the expected annual EBITDA is around $40 million.

The partnership between Duos Edge AI, Inc., a subsidiary of Duos Technologies, and Hydra Host is fully funded through the company's recent $65 million public offering and existing hardware financing arrangements. This financial backing ensures that deployment can commence immediately without the need for additional equity financing. The contract marks a pivotal step for Duos Technologies as it positions itself as an emerging provider of distributed AI infrastructure, catering to large-scale compute workloads.

Doug Recker, the newly appointed CEO effective April 1, 2026, emphasized the strategic importance of the initial deployment, which will consist of multiple high-density modular Edge Data Centers (EDCs) designed specifically for large-scale AI workloads. Manufacturing of the EDCs is already underway, with critical power modules ordered to support deployment timelines. The first phase of the project includes a 4.3+ MW colocation commitment from a leading global technology company, serving as the project's anchor tenant.

This contract not only represents the largest Edge Data Center project in the company's history but also highlights the growing demand for GPU hosting and GPU-as-a-Service solutions. As Duos Technologies advances its long-term objective of achieving 75 MW of distributed capacity, it is actively evaluating additional high-density deployment sites to meet the accelerating demand in the market. The company is poised to capitalize on the increasing interest from AI hyperscalers and other potential AI infrastructure customers, underscoring the scalability and market demand for its distributed infrastructure platform.



Press Release distribution
National Press Distribution across U.S. Media. Direct Access to Key Decision Making Editors.