TSS, Inc, Relocating and Expanding Factory to Address Accelerating Demand for AI-Enabled Technologies

Online, October 24, 2024 (Newswire.com) - TSS, Inc. (OTCQB:TSSI), a data center services company that integrates AI and other high-performance computing infrastructure and software and provides related data center services, today announced it plans to relocate its headquarters and factory to a new location to support expected AI integration growth.

"Based on our analysis of industry trends and the deepening of our relationship with one of our largest customers, we anticipate demand for our AI-enabled rack integration services will outpace our current capacity. Our outlook for at least the next five years is for volumes to be at a similar or greater level to what we began to experience under our first, large AI-related program," said Darryll Dewan, Chief Executive Officer of TSS Inc. "In order to address not only the volume but also the ever-increasing power demands expected from the next generations of AI racks, we plan to relocate from our current facility to another nearby. We have ensured the needed additional power will be available at the selected location to accommodate the foreseeable technology roadmap, including racks consuming three to five times the power as those being produced today. We expect the new facility will be fully operational in early 2025, enabling us to meet the production requirements that we anticipate under a new multiyear customer agreement."

"We believe this new facility will require investment of approximately $25 to $30 million for improvements, with a significant portion of that cost allocated to bringing additional power into the building," Dewan continued. "Further, this investment will provide greatly expanded cooling capacity for our rack testing and validation stations and a tripling of our capacity to test and validate direct liquid cooled racks in addition to the more traditional air-cooled racks. We plan to finance the investment with bank debt and cash on hand."

Dewan concluded, "One of our largest customers has demonstrated a true sense of partnership in structuring an agreement supporting this capacity expansion. This is a substantial next step in positioning ourselves for continued rapid growth."

About TSS, Inc.

TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS's reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit www.tssiusa.com.

Forward Looking Statements

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Contacts:

Hayden IR
James Carbonara (646-755-7412)
Brett Maas (646-536-7331)
tssi@haydenir.com

TSS, Inc.
Danny Chism, CFO
(512) 310-4908
dchism@tssiusa.com

Contact Information

James Carbonara
Partner
james@haydenir.com
6467557412

SOURCE: TSS, Inc.

Source: TSS, Inc.