Duos Technologies Group’s subsidiary, Duos Edge AI, added two new edge data center (EDC) sites in Texas and entered the Illinois market, extending its footprint in the Midwest. The Texas deployments are located in Lubbock and support carrier‑neutral colocation, while the Chicagoland site marks the first of several planned Midwest installations.
The expansion follows a series of Texas deployments—including Amarillo, Victoria, Waco, Dumas and Corpus Christi—that demonstrate the scalability of Duos Edge AI’s modular, SOC 2 Type II‑certified platform. The company’s patented Entryway for a Modular Data Center (US 12,404,690 B1) enables rapid, 90‑day deployment of 100 kW+ per cabinet, positioning the solution for education, healthcare and enterprise workloads in underserved markets.
Duos reported Q3 2025 results that provide context for the expansion. Total revenue rose 112% year‑over‑year to $6.88 million, driven by strong demand for edge computing services. However, earnings per share fell to $(0.30) versus consensus estimates of $(0.19) to $(0.21), a miss of $0.09 to $0.11. The shortfall was largely attributable to higher operating costs, including increased labor and material expenses, and a one‑time charge related to the rollout of new data‑center infrastructure. Despite the earnings miss, the revenue growth signals robust market demand for low‑latency edge solutions.
Strategically, the expansion supports Duos’ pivot from its legacy rail‑technology business to a high‑margin subscription model in the edge and power sectors. By adding sites in Texas and Illinois, the company is capturing a growing segment of localized, low‑latency computing that is attractive to carriers, enterprises and public‑sector customers. The move also expands the company’s carrier‑neutral footprint, enhancing its competitive position against larger, more established edge‑data‑center providers.
Analysts have responded positively to the expansion and the underlying revenue growth. Several analysts have raised their price targets and maintained Buy ratings, citing the company’s ability to scale its modular platform and the strong demand for edge computing in the Midwest. The market reaction reflects confidence in Duos’ execution and the potential for recurring revenue from colocation and managed services.
Doug Recker, President of Duos and Founder of Duos Edge AI, said the expansion “reflects both execution discipline and rising demand for our Edge Data Center.” He added that the company is building a scalable, repeatable deployment model that supports education, carriers and enterprises with secure, low‑latency infrastructure, reinforcing confidence in continued momentum as the company executes against its long‑term guidance.
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