TSS, Inc.

TSS, Inc. (NASDAQ:TSSI) is a Texas-based technology services company that specializes in data center infrastructure and systems integration. Founded in 2004 and originally known as Fortress International Group, the company went public in 2005 and rebranded to TSS in 2013. The company has undergone significant transformation in recent years, evolving from a traditional IT services provider to a key player in the artificial intelligence infrastructure buildout. TSS operates from its headquarters in Round Rock, Texas, and recently expanded with a major new facility in Georgetown, Texas to support its rapidly growing AI rack integration business.

TSS has undergone a dramatic strategic transformation over the past two years, pivoting from a traditional IT services company to a specialized AI infrastructure provider. The most significant development has been the company's focus on AI rack integration services, which has driven explosive revenue growth as hyperscale customers and AI companies build out their computing infrastructure. The company made substantial facility investments, leasing a new 213,000 square foot facility in Georgetown, Texas, that will more than double their operational capacity. This $25-30 million investment includes expanding power capacity from 2.7 MW to an initial 6 MW with plans to reach 15 MW, enabling the company to handle increasingly power-hungry AI equipment. The facility is designed for direct liquid cooling systems, anticipating the evolution from traditional air cooling to liquid cooling for high-performance AI chips. Operational improvements have been equally significant, with TSS reducing rack integration cycle times from 2-3 weeks to less than one day through process optimization and workforce development. The company has more than doubled its headcount and implemented new incentive systems to attract and retain skilled technicians capable of handling complex AI infrastructure. The procurement services expansion has created a new major revenue stream, growing from minimal contribution to $90.2 million in Q1 2025. This growth reflects TSS's role in sourcing and coordinating delivery of scarce AI components, particularly NVIDIA GPUs and associated hardware, for large-scale customer deployments. TSS has also secured multi-year customer agreements that provide revenue visibility and support the substantial facility investments. The company is exploring expansion beyond its primary customer relationship while maintaining existing partnerships, potentially through complementary service offerings or strategic acquisitions.