Eleveight AI to double AI Factory capacity with $2B investment, reaching 40 MW
With its first capacity fully committed, the Gagarin AI Factory will pass 1,000 GPUs by the end of 2026.
Eleveight AI is planning a $2 billion investment in the second phase of its AI Factory in Gagarin, Armenia. Phase 2 will add 35 MW of power capacity, bringing the facility to 40 MW in total. Construction has already begun, and completion is expected by mid-2027.
The news comes a few months after the AI Factory went live. The first 1.5 MW of capacity is now fully committed, with demand increasingly driven by international enterprise clients across global markets.
While Phase 2 moves forward, the final steps of Phase 1 are being completed. Capacity will reach 5 MW by the end of 2026, backed by an initial $150 million investment. The company is currently awaiting upcoming equipment shipments that will push the facility past 1,000 active GPUs.
The project has moved quickly. The idea started taking shape in early 2025, physical construction began about a year ago, and the first part of the factory was deployed this summer on NVIDIA’s latest B300 GPUs.
“When we launched, the core question was whether Armenia could support AI infrastructure at this scale. Global market demand has provided a definitive answer,” said Arman Aleksanian, Co-Founder and CEO of Eleveight AI. “Phase 2 is our direct response: more capacity, faster deployment, and a world-class compute ecosystem built right here in Armenia.”
Even the first part of Phase 1 far exceeds what Armenia can currently use, which is why the product is intended for export. Because the initial capacity is larger than what Armenia currently uses, the project is designed to export compute globally. At the same time, local demand is picking up fast. Businesses across different sectors are adopting AI, public administration is modernizing, and Armenian startups are expanding internationally. As the local market grows, more of this power will be used at home.
Throughout this expansion, environmental efficiency remains core to the engineering architecture. The Gagarin AI Factory operates at an optimal Power Usage Effectiveness (PUE) of 1.1 and a Water Usage Effectiveness (WUE) of 0 L/kWh, leveraging closed-loop design to minimize ecological impact.
