Duos Technologies Group, Inc. Signs ~$200M LOI and Appoints Doug Recker as CEO

Core Insights - Duos Technologies Group, Inc. has signed a non-binding letter of intent with Hydra Host to deploy a high-density NVIDIA GPU cluster, expected to generate approximately $176 million in revenue over a 36-month term with projected annual EBITDA exceeding $40 million [1][2] Group 1: Financial Projections - The GPU-as-a-Service partnership is modeled to support gross margins of more than 80% [1] - Incremental colocation revenue from the collaboration is expected to total approximately $25 million over the same 36-month term [2] Group 2: Strategic Developments - Duos has secured a ground lease in Iowa with access to up to 10MW of utility power, establishing a strategic high-density deployment site [3] - The company aims to build up to 75MW of distributed capacity as part of its long-term strategy [3] Group 3: Leadership Changes - Doug Recker has been appointed as Chief Executive Officer effective April 1, 2026, succeeding Chuck Ferry, who will remain on the board [4] - Under Mr. Recker's leadership, Duos will focus on scaling modular Edge Data Centers and expanding GPU hosting capabilities [4][5] Group 4: Market Positioning - The partnership with Hydra Host is seen as a validation of Duos' High-Power Edge Data Center business line, designed to meet the growing demand for AI compute capacity [2][5] - Duos is positioned to pursue high-value infrastructure opportunities with secured power and rapid deployment capabilities [5]