Duos Technologies Group, through its subsidiary Duos Edge AI, announced a definitive contract with Hydra Host to deploy a high-density NVIDIA GPU cluster for a leading global technology company.

Duos Technologies Group, Inc. ("Duos" or the "Company") (Nasdaq: DUOT), through its operating subsidiary Duos Edge AI, Inc., a provider of advanced digital infrastructure solutions, today announced it has executed a definitive contract with Hydra Host, pursuant to the previously announced letter of intent, to deploy a high-density NVIDIA GPU cluster for a leading global technology company. The project establishes Duos Edge AI as an emerging provider of distributed AI infrastructure supporting large-scale compute workloads. The GPU-as-a-Service ("GPUaaS") contract is expected to generate approximately $176M in revenue over a 36-month term, an initial $18M customer pre-payment, projected gross margins exceeding 80% and expected annual EBITDA of approximately $40 million. 

Duos and its operating subsidiary Duos Edge AI, Inc. have entered into a commercial partnership with Hydra Host to deliver GPU hosting and GPU-as-a-Service solutions at scale. The partnership is fully funded through the Company's recently completed $65 million public offering and hardware financing arrangements already in place, ensuring deployment can commence immediately without reliance on additional equity financing.

"The initial deployment will be located at a strategic site and will consist of multiple high-density modular Edge Data Centers ("EDCs") which are specifically designed to support large-scale AI workloads," said Doug Recker, newly appointed CEO effective April 1st, 2026. "Manufacturing of the EDCs is currently underway, with critical power modules already ordered to support deployment timelines."

The first phase also includes an initial 4.3+ MW colocation commitment from a leading global technology company, which will serve as the project's anchor tenant. This deployment represents the largest Edge Data Center project in Company history, with additional colocation revenue expected alongside the GPUaaS contract as the site scales toward its full power capacity.

Key Highlights:

$176 million GPUaaS contract, gross margins expected to exceed 80%, projected annual revenue of $50M+ and annual EBITDA of $40M+

Contract also includes an $18M customer prepayment at inception

Contract includes an additional 4.3MW High-Power EDC deployment, offering meaningfully improved economics over the Company's legacy model

Additional high-density power sites under active evaluation, providing significant runway to scale colocation opportunity

This contract represents a powerful commercial validation of Duos' High-Power EDC business line, purpose-built to serve AI companies and high-performance compute tenants requiring premium rack space, dedicated high-density power, and industry-leading rapid deployment. The model is already attracting significant inbound interest from AI Hyperscalers, NeoCloud operators and other potential AI Infrastructure customers, seeking 5 to 20MW deployments, underscoring the scalability and market demand for Duos' distributed infrastructure platform. As the Company advances its long-term objective of 75MW of distributed capacity, Duos is actively evaluating additional high-density deployment sites to meet accelerating demand.

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COMTEX_478958558/2227/2026-05-11T20:53:10