Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a New York-headquartered acquisition platform repositioned around AI infrastructure, GPU IaaS, AI-enabled software, and cybersecurity, operating the Nexxis telecom/data subsidiary and the pre-revenue Sovereign AI Solutions AI Continuity Control Plane for regulated industries.
- Company typePublic
- Founded2001
- HeadquartersGarden City, United States
- Headcount11–50
- GTM typeB2B
- OfferingSoftware
What Data Storage Corporation does
Data Storage Corporation (Nasdaq: DTST) is a publicly traded acquisition platform headquartered in New York that has repositioned itself around AI infrastructure, GPU Infrastructure-as-a-Service, AI-enabled vertical software, and cybersecurity following the September 2025 sale of its legacy CloudFirst subsidiary for $40 million. Originally founded in 2001, the company historically operated as an IBM Power Systems managed-services specialist serving government, healthcare, education, manufacturing, and Fortune 500 enterprises, with a historical client base exceeding 425 organizations and over 90% annual subscription renewal rates. Post-divestiture, the company has narrowed its operating footprint to two subsidiaries: Nexxis, which delivers hosted VoIP, telecommunications, and data access services on a recurring subscription model (approximately $1.4 million in FY2025 revenue at 44.4% gross margins), and the newly established Sovereign AI Solutions (SaiS), which is developing an AI Continuity Control Plane targeting recovery, validation, and compliance for sovereign AI deployments in regulated industries.
The business model combines a recurring-revenue telecom and data services operation with an emerging AI continuity software thesis and an explicit acquisition strategy. SaiS is pre-revenue and targets a market the company estimates could be worth billions annually, with no identified purpose-built competitors; the AI Continuity Control Plane leverages the company's IBM Power Systems heritage to address AI system failures and compliance requirements in healthcare, financial services, and insurance. Capital structure post-transformation carries approximately 2.17 million shares outstanding (down ~72% following a $29.3 million tender offer at $5.20 per share), over $10 million in cash, no debt, and a market capitalization of approximately $8.39 million as of April 2026. Insider ownership is approximately 43.8%, concentrated in Chairman and CEO Charles M. Piluso.
Go-to-market is enterprise field sales targeting regulated industries, with marketing conducted primarily through investor relations channels (GlobeNewsWire press releases, quarterly earnings calls, IR website, and selective industry events such as the AI Data Center Summit). Pricing is quote-based and not publicly disclosed. The strategic intent is to use the post-divestiture balance sheet to acquire or incubate companies in GPU infrastructure, AI-enabled software, and cybersecurity — sectors the company cites as multi-billion-dollar markets growing 14-36% annually — while SaiS provides an organic optionality path into AI continuity software for regulated enterprises.
Data Storage Corporation firmographics
Firmographics- Name
- Data Storage Corporation
- Legal name
- Data Storage Corporation
- Website
- https://dtst.com
- Company type
- Public
- Founded year
- 2001
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Data Storage Corporation (Nasdaq: DTST) is a New York-headquartered acquisition platform repositioned around AI infrastructure, GPU IaaS, AI-enabled software, and cybersecurity, operating the Nexxis telecom/data subsidiary and the pre-revenue Sovereign AI Solutions AI Continuity Control Plane for regulated industries.
- Ownership category
- akta.pro rank
Data Storage Corporation industry classification
Industry- Product category
- Cloud Infrastructure and AI Continuity
- NAICS
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (51821), Computer Facilities Management Services (541513)
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Computer Storage Devices (3572)
- akta.pro primary industry
- Enterprise AI Data & Knowledge Platforms (Vector Databases, Knowledge Graphs) (HDAEANAH)
- akta.pro secondary industries
- Enterprise Storage Arrays (SAN/NAS/Object Storage) (HDACACAB), Data & Analytics Platforms (Data Warehousing, Lakes, Streaming) (HDABAAAF)
Keywords
Where Data Storage Corporation is headquartered
LocationHeadquarters
- HQ city
- Garden City
- HQ country
- United States
- HQ region
- North America
Offices6 records
Markets served
Data Storage Corporation business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Infrastructure, Operations, Marketing or Sales
Revenue model
- Nexxis VoIP and Data Services: Nexxis subsidiary generates recurring subscription revenue from hosted VoIP, telecommunications, and data access services. The subsidiary generated approximately $1.4 million in revenue for fiscal year 2025 with 13.4% year-over-year growth and 44.4% gross margins.
- AI Continuity Solutions (Pre-revenue): Sovereign AI Solutions (SaiS), a wholly-owned subsidiary focused on AI continuity infrastructure for regulated industries, is currently in the development stage and pre-revenue.
Go-to-market motion1 record
Distribution channels2 records
Marketing channels4 records
Data Storage Corporation product offering
Product offeringCore offering
Data Storage Corporation operates as a Nasdaq-listed acquisition platform focused on technology investment in AI infrastructure, GPU IaaS, AI-enabled vertical software, and cybersecurity. Its core operating subsidiary, Nexxis, delivers hosted VoIP, telecommunications, and data access services to enterprise and mid-market customers on a recurring subscription basis. The newly established Sovereign AI Solutions (SaiS) subsidiary is developing an AI Continuity Control Plane for sovereign AI environments in regulated industries including healthcare, financial services, and insurance.
Product overview
Data Storage Corporation operates as a Nasdaq-listed acquisition platform focused on technology investment. The company offers a portfolio of technology solutions including GPU Infrastructure-as-a-Service for AI workloads, AI-Enabled Software for vertical applications, and Cybersecurity services. The core operating subsidiary Nexxis provides VoIP and telecommunications services. Following the CloudFirst divestiture, the company launched Sovereign AI Solutions as a new subsidiary developing an AI Continuity Control Plane for regulated industries. The company's strategy centers on acquiring and growing emerging technology companies in AI, infrastructure, and communications sectors.
Differentiator
Problem solved
Functional benefit
Brands
- Nexxis: Telecommunications and data access subsidiary providing VOIP and data services.
- Sovereign AI Solutions (SaiS)
Products and services
- Nexxis VoIP and Data Services A wholly-owned subsidiary providing hosted VoIP, unified communications, telecommunications, and data access services to enterprise and mid-market customers on a recurring subscription basis. Nexxis delivers data services and trusted VOIP services designed to provide resilience and scale, generating approximately $1.4 million in FY2025 revenue with 13.4% year-over-year growth and 44.4% gross margins.
- Sovereign AI Solutions (SaiS) — AI Continuity Control Plane A wholly-owned subsidiary of Data Storage Corporation launched in May 2026 that is developing an AI Continuity Control Plane designed to support recovery, validation, and compliance for sovereign AI and AI Factory environments in regulated industries including healthcare, financial services, and insurance. The product addresses AI system failures and degradation and is currently in the development stage and pre-revenue.
Quantifiable outcome
- Nexxis revenue grew 13.4% year-over-year to $1.4 million with 44.4% gross margins
- +2 more outcomes
Companies that use Data Storage Corporation
Customer profileNamed customers1 record
Segments3 records
Ideal customer profiles2 records
Data Storage Corporation technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability1 record
Feature1 record
Data Storage Corporation partnerships and signals
Strategic signalPartnerships
Five partnerships are on record, tiered core.
- Total Server Solutions Holdings, LLCcoreTotal Server Solutions Holdings, LLC (subsidiary of Performive Holdings, LLC) acquired Data Storage Corporation's CloudFirst subsidiary for $40 million in September 2025. The transaction included all cloud solutions business assets and was part of Data Storage's strategic transformation.
- Rosenberg Rich Baker Berman & CompanycoreIndependent registered public accounting firm serving as Data Storage Corporation's auditor. Located in Somerset, NJ.
- BlankRomecoreLegal counsel for Data Storage Corporation, headquartered in New York.
- Crescendo Communications, LLCcoreInvestor relations firm serving Data Storage Corporation. Located at 12 E 49th Street, New York, NY.
- VStock Transfer LLCcoreTransfer agent for Data Storage Corporation shares. Located in Woodmere, NY.
Scale indicators9 records
Recent moves11 records
Expansion highlights5 records
Data Storage Corporation competitors and assessment
Company assessmentDirect peers
- Applied Digital: Public GPU cloud / AI hosting company pivoting to AI infrastructure with similar strategic positioning to DTST's stated GPU IaaS focus; comparable as a small-cap public AI infrastructure vehicle.
- Core Scientific: Nasdaq-listed company transitioning from crypto mining to AI/HPC hosting infrastructure; comparable to DTST's pivot toward GPU IaaS and AI infrastructure for enterprise customers.
- Bitdeer Technologies: Public AI cloud infrastructure company operating GPU clusters for AI training and inference; directly comparable to DTST's stated GPU Infrastructure-as-a-Service strategy.
- Iris Energy: Public renewable-powered HPC/AI infrastructure operator; comparable as a small-cap AI infrastructure platform pursuing enterprise GPU compute opportunities.
- Cipher Mining: Public crypto/HPC operator pivoting toward AI compute hosting; comparable strategic positioning to DTST's narrative of AI infrastructure transformation.
- Hut 8: Public digital infrastructure operator building HPC/AI compute capacity; comparable as a small-cap public vehicle pursuing AI infrastructure opportunities.
- 8x8: Public VoIP and UCaaS provider; directly comparable to DTST's Nexxis subsidiary for hosted VoIP and telecommunications services to enterprise and mid-market customers.
Broad incumbents
- RingCentral: Larger public UCaaS incumbent offering cloud communications; comparable as a broader competitor in the VoIP/telecom space where Nexxis operates.
- Vonage (Ericsson): Established cloud communications platform now part of Ericsson; comparable as a broader VoIP/UCaaS competitor to Nexxis.
Emerging players
- TeraWulf: Public HPC infrastructure operator pursuing AI compute hosting opportunities; comparable as another small-cap public company pivoting toward AI infrastructure.
Market position
Strengths4 records
Weaknesses5 records
Competitive moat3 records
Key risks6 records
Key highlights7 records
Customer concentration
Data Storage Corporation social profiles
Digital presenceData Storage Corporation financial estimates
Financial estimateRevenue estimate
Valuation estimate
Data Storage Corporation leadership team
Management profileNumber of profiles
Profiles5 records
Data Storage Corporation subsidiaries and ownership
Company hierarchySubsidiaries7 records
Data Storage Corporation funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Data Storage Corporation M&A and investment
M&A and investmentM&A2 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Data Storage Corporation
What does Data Storage Corporation do?
Data Storage Corporation operates as a Nasdaq-listed acquisition platform focused on technology investment in AI infrastructure, GPU IaaS, AI-enabled vertical software, and cybersecurity. Its core operating subsidiary, Nexxis, delivers hosted VoIP, telecommunications, and data access services to enterprise and mid-market customers on a recurring subscription basis. The newly established Sovereign AI Solutions (SaiS) subsidiary is developing an AI Continuity Control Plane for sovereign AI environments in regulated industries including healthcare, financial services, and insurance.
Is Data Storage Corporation a public or private company?
Data Storage Corporation is a public company. It is classified as public and is currently operating.
When was Data Storage Corporation founded?
Data Storage Corporation was founded in 2001. It employs 11 to 50 people.
Where is Data Storage Corporation based?
Data Storage Corporation is headquartered in Garden City, United States, in the North America region.
How does Data Storage Corporation make money?
Two revenue lines are on record. Nexxis VoIP and Data Services are the primary driver. The others are AI Continuity Solutions (Pre-revenue).
Who are Data Storage Corporation's main competitors?
Direct peers on record are Applied Digital, Core Scientific, Bitdeer Technologies, Iris Energy, Cipher Mining, Hut 8 and 8x8. Broad incumbents are RingCentral and Vonage (Ericsson). TeraWulf is listed as an emerging player.
Does Data Storage Corporation have an API?
No public API is recorded for Data Storage Corporation.
What industry is Data Storage Corporation in?
Data Storage Corporation's product category is Cloud Infrastructure and AI Continuity. Its primary akta.pro industry code is HDAEANAH, Enterprise AI Data & Knowledge Platforms (Vector Databases, Knowledge Graphs), with a secondary code of HDACACAB, Enterprise Storage Arrays (SAN/NAS/Object Storage). Its NAICS code is 51821 and its SIC code is 7370.