Duos Edge AI

What Duos Edge AI does

Duos Edge AI, Inc. is a Jacksonville, Florida-based operator of modular edge data centers and a wholly-owned subsidiary of Duos Technologies Group, Inc. (NASDAQ: DUOT). Founded in 2024 by Doug Recker, the former founder of EdgePresence and Colo5, the company deploys containerized, prefabricated Edge Data Centers within approximately 12 miles of end users in rural and underserved U.S. markets, with 12 facilities live across Texas (Hereford, Dumas, Lubbock, Waco, Victoria, Corpus Christi, Amarillo, Abilene) and additional sites planned in Illinois, Georgia, and Iowa. Its technical platform delivers 100 kW+ per-cabinet capacity using air cooling with zero water consumption, SOC 2 Type 2-compliant, carrier-neutral infrastructure, and a 90-day deployment timeline versus 12-18 months for traditional builds. The company has filed a patent on its approach to localizing compute at the network edge, which received the 2026 Pacific Telecommunication Council Outstanding Innovation Award.

The business model combines recurring colocation and connectivity revenue from regional carriers, healthcare providers, and educational institutions with a high-margin GPU-as-a-Service offering managed through Hydra Host's Brokkr AI Factory Operating System. Its single largest contracted engagement is a $176 million, 36-month GPUaaS contract with Hydra Host covering 2,304 NVIDIA B800 GPUs for a global technology customer, with reported gross margins above 80% and projected annual EBITDA above $40 million. B300 GPU deployments are funded through a $98.1 million non-recourse, off-balance-sheet debt facility from USD.AI, supplemented by a $55 million registered direct offering closed by the parent in June 2026. The company also operates an Infrastructure Solutions Group that signed approximately $7 million in deployment contracts during Q4 2025. FY2025 revenue was reported at $28 million, an estimated 288% increase over the prior year.

The customer base spans K-12 school districts and regional Education Service Centers (Regions 3, 12, 14, and 16 in Texas), regional carriers, healthcare organizations, and through the Hydra Host channel, hyperscale and global technology customers. Go-to-market combines community-led partnership development with school districts and ESCs, event-driven open house marketing at each new deployment, and enterprise field sales for large GPU and colocation contracts. Regulatory and compliance positioning includes SOC 2 Type 2, FERPA, COPPA, and CIPA design support, making the platform particularly suited to public-sector and education workloads.

Name

Duos Edge AI

Legal name

Duos Edge AI, Inc.

Website

https://duosedge.ai

Company type

Private

Founded year

2024

Operating status

Operating

Headcount range

11–50 employees

Short description

Duos Edge AI is a Jacksonville-based subsidiary of Duos Technologies Group (NASDAQ: DUOT) that deploys modular, water-efficient edge data centers within 12 miles of end users across rural Texas markets, serving K-12 school districts, healthcare organizations, carriers, and hyperscale AI customers via a $176 million GPUaaS contract managed with Hydra Host.

Ownership category

akta.pro rank

Product category

Edge Data Center Services

NAICS

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (518210)

SIC

Services-Computer Programming, Data Processing, Etc. (7370), Communications Services, Nec (4899)

akta.pro primary industry

Edge Colocation & Micro Data Centers (HDABACAI)

akta.pro secondary industries

Edge Compute Infrastructure (Servers, HCI, GPU/AI at Edge) (HDABAOAC), Edge Compliance, Governance & Data Sovereignty Infrastructure (HDABAOAL)

Keywords

• Edge data centers
• GPU-as-a-Service
• Modular data centers
• Colocation services
• Edge computing infrastructure

Headquarters

HQ city

Jacksonville

HQ country

United States

HQ region

North America

Offices10 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Technology or R&D, Operations, Personnel, Marketing or Sales

Revenue model

1. Colocation and Edge Data Center Services: Recurring revenue from providing colocation and edge computing services from modular data centers. Customers include carriers, enterprises, healthcare providers, and educational institutions paying for compute, storage, and connectivity services.
2. GPU-as-a-Service (GPUaaS): High-density GPU cluster deployment and management services. The $176 million contract with Hydra Host represents a 36-month GPUaaS engagement expected to deliver over $50 million in annual revenue and $40 million in EBITDA.
3. Infrastructure Solutions and Deployment: Infrastructure Solutions Group signed approximately $7 million in contracts during Q4 2025 for edge data center deployment and related services.
4. Asset-Backed Financing Structure: The vertically integrated model combines physical infrastructure deployment, GPU workload management, and specialized financing, with USD.AI providing non-recourse, non-dilutive debt financing secured by GPU assets and offtake contracts.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels4 records

Core offering

Duos Edge AI deploys and operates modular, containerized Edge Data Centers within approximately 12 miles of end users in underserved U.S. markets, providing high-density compute, low-latency connectivity, and carrier-neutral colocation capacity. The company sells GPU-as-a-Service (GPUaaS) for AI workloads, recurring colocation and edge computing services to carriers, enterprises, healthcare providers, and educational institutions, and professional infrastructure deployment services through its Infrastructure Solutions Group.

Product overview

Duos Edge AI operates a modular Edge Data Center platform that provides localized, high-density compute and connectivity infrastructure deployed within approximately 12 miles of end users in underserved communities. The platform delivers scalable edge computing capabilities including AI workload support, disaster recovery solutions, and carrier-neutral connectivity for education, healthcare, carriers, and enterprises across Texas and expanding U.S. markets.

Differentiator

Problem solved

Functional benefit

Products and services

• Modular Edge Data Center (EDC) Patented modular, containerized edge computing facilities deployed within approximately 12 miles of end users, providing 100 kW+ per cabinet capacity with zero-water air cooling and SOC 2-compliant carrier-neutral infrastructure for AI, education, healthcare, carrier, and enterprise workloads in rural and underserved communities.
• GPU-as-a-Service (GPUaaS) Managed high-density NVIDIA B800 and B300 GPU compute delivered from Duos Edge AI's modular edge data centers, distributed via Hydra Host's Brokkr AI Factory Operating System to global technology customers for large-scale AI workloads.
• Colocation and Edge Computing Services Recurring colocation, compute, storage, and connectivity services provided from Duos Edge AI's modular edge data centers to carriers, enterprises, healthcare providers, and educational institutions on a subscription basis.
• Infrastructure Solutions Group Deployment Services Professional services for edge data center deployment, including site deployment, integration, and related infrastructure services delivered to customers across Duos Edge AI's footprint.

Quantifiable outcome

• 288% year-over-year revenue growth to $28 million in FY2025
• +3 more outcomes

Named customers9 records

Segments5 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature5 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• Hydra HostcoreTechnology or Integration · 17 June 2026AI infrastructure partnership for deployment of 2,304-GPU B800 cluster expected to generate approximately $176 million in revenue over a 36-month term. Hydra Host manages GPU-as-a-Service distribution through its Brokkr AI Factory Operating System while Duos Edge AI operates the physical Edge Data Centers.
• Region 12 Education Service Center (Waco)coreStrategic or Co-development Partner · 21 May 2026720-square-foot edge data center serving 77 school districts and 9 charter schools across Central Texas, providing advanced technology including faster internet speeds, improved data security, and compliance with FERPA, COPPA, and CIPA.
• Region 3 Education Service Center (Victoria)coreStrategic or Co-development Partner · 14 May 2026Edge Data Center serving 37 school districts across Region 3 and South Texas market with secure, scalable local computing hub supporting high-performance compute, AI workloads, education technology, telemedicine, and disaster recovery.
• Region 16 Education Service Center (Amarillo)coreStrategic or Co-development Partner · 19 March 2026Second edge data center deployment in Amarillo market, situated in Potter County adjacent to the largest colocation facility in the Texas Panhandle, providing high-density low-latency computing for real-time AI applications.
• Iowa Ground Lease PartnerminorStrategic or Co-development Partner · 19 March 2026Ground lease in Iowa with access to up to 10MW of utility power as part of building toward distributed AI infrastructure capacity goal of up to 75MW.
• Dumas Independent School DistrictcoreStrategic or Co-development Partner · 4 February 2026Partnership for edge data center deployment serving approximately 4,300 students across seven campuses, providing digital infrastructure and regional computing hub services for the Texas Panhandle region.
• Potter County (Texas)minorStrategic or Co-development Partner · 27 January 2026Five-year lease on county-owned land near the Santa Fe Building in downtown Amarillo for modular edge data center deployment, paying approximately $18,000 annually.
• Hereford Independent School DistrictcoreStrategic or Co-development Partner · 13 January 2026Partnership for deployment of modular Edge Data Center serving 4,000+ students across 900 square miles in the Texas Panhandle, providing infrastructure for AI tools, digital access, and workforce readiness programs.
• Region 14 Education Service Center (Abilene)coreStrategic or Co-development Partner · 7 January 2026Edge data center serving over 40 school districts and charter schools across an 11-county area spanning more than 13,000 square miles in West Texas, providing carrier-neutral colocation and low-latency AI capabilities.
• New APR Energy (formerly Sawgrass Buyer LLC)coreStrategic or Co-development Partner · 1 January 2025Asset Management Agreement for power solutions services. The AMA's expected revenue for 2026 was reduced from previously indicated levels due to modified service terms, though management believes its Technology Solutions business line may offset this variability.

Scale indicators13 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Stack Infrastructure: Stack Infrastructure develops and operates wholesale data center campuses across Tier 1 and emerging U.S. markets, increasingly targeting AI/HPC workloads. Its build-and-lease model and AI infrastructure positioning overlap tangentially with Duos Edge AI's GPUaaS and edge data center strategy.
• QTS Data Centers (Blackstone): QTS, now owned by Blackstone, is a large hyperscale and enterprise data center platform expanding into edge and AI-ready capacity. While primarily megascale, its edge/AI expansion efforts overlap strategically with Duos Edge AI's distributed high-density AI infrastructure thesis.
• DataBank: DataBank operates a national footprint of edge colocation and interconnection facilities across 70+ U.S. data centers. It overlaps with Duos Edge AI in edge metro/colocation services but does so as a broad incumbent across many customer verticals rather than a focused rural/underserved edge AI play.

Emerging players

• CoreWeave: CoreWeave is a GPU-accelerated cloud provider offering GPUaaS on large-scale NVIDIA infrastructure, comparable to Duos Edge AI's Hydra Host partnership economics. While CoreWeave focuses on core/cloud regions versus Duos's edge strategy, both compete in the distributed GPU infrastructure layer serving AI workloads.
• Crusoe Energy: Crusoe has pivoted into modular, high-density AI/HPC data centers leveraging stranded or low-cost power for GPU compute clusters. Both companies combine modular infrastructure with GPUaaS economics for AI workloads, competing for the same hyperscale AI infrastructure opportunity from complementary starting points.
• Lambda: Lambda is an AI infrastructure provider offering GPU cloud and GPUaaS on NVIDIA hardware. While the typical deployment model is centralized, both companies serve the same AI compute buyer with high-density NVIDIA clusters, targeting similar verticals including enterprise AI and hyperscale AI customers.

Direct peers

• EdgePresence: EdgePresence is an edge data center provider that Duos Edge AI's CEO Doug Recker previously founded, deploying modular micro edge facilities across U.S. Tier 2-4 markets. Operational lineage, modular edge build philosophy, and target customer segments (carriers, enterprises, healthcare, education) make it a near-perfect comparable to Duos Edge AI's current business model.
• EdgeConneX: EdgeConneX is one of the largest pure-play edge data center operators, deploying modular facilities close to end users across Tier 2-4 U.S. markets. It is the closest direct peer to Duos Edge AI's modular edge colocation business, operating with similar carrier-neutral positioning and small-footprint, high-density builds targeted at underserved geographies.
• Compass Datacenters: Compass Datacenters builds modular, prefabricated data center campuses for hyperscale and enterprise customers, including smaller-footprint edge-oriented builds. Its modular architecture philosophy and target customer base overlap directly with Duos Edge AI's containerized, rapid-deployment model.
• Vapor IO: Vapor IO develops modular edge data centers and edge networking infrastructure (Kinetic Grid) designed for low-latency 5G, AI, and IoT workloads in Tier 2-4 markets. Both Vapor IO and Duos Edge AI compete for the same hyperscale/edge AI customer base with containerized, high-density, carrier-neutral facilities.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/duosedgeai
• LinkedInlinkedin.com/company/duos-edge-ai

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Duos Edge AI