Bitdeer (historical bitcoin mining operator) secures $4.7 billion long-term data center lease deal for AI infrastructure expansion, pivoting from crypto mining to GPU-intensive AI workloads.
Bitdeer Technologies' shares surged 12% on Tuesday, August 4, following the bitcoin miner's announcement of a major pivot into AI infrastructure. The company's Norwegian subsidiary, Tydal Data Center AS, has signed a colocation and services contract with Volta Tydal AS valued at approximately $4.7 billion over its initial 16-year term. An eight-year renewal option could lift the total contract value to roughly $8 billion over 24 years, though the tenant retains the right to terminate without penalty after 10 years.
The agreement centers on delivering 121 megawatts of IT capacity at Bitdeer's Tydal campus, supported by approximately 133 MW of total power. All computing load will be configured for Nvidia graphics processing units, with Dell Technologies serving as the equipment provider. Volta Tydal AS, part of an Nvidia Cloud Partner, will provide the capacity to an unnamed leading AI laboratory.
The facility will operate entirely on renewable energy, including local hydropower, and is engineered to achieve a power usage effectiveness ratio of approximately 1.1. "This agreement is a key milestone in Bitdeer's evolution as a global AI infrastructure platform," Chief Financial Officer Michael Potter said.
Construction will proceed in two equal phases across four data halls. The first phase is scheduled to begin operations by December 31, 2026, with the second phase commencing on March 31, 2027. Bitdeer is also developing two additional halls with 47 MW of gross capacity for future AI and high-performance computing workloads in the second half of 2027.
The lease structure calls for an average payment of approximately $202 per kilowatt each month over the initial term, with lease and services payments rising 3% annually. Electricity costs will be reimbursed separately by the tenant. Bitdeer projects average yearly revenue of $2.4 million per IT megawatt and a net operating income margin of approximately 90%.
Volta's obligations are expected to be supported by approximately $1.3 billion in letters of credit arranged by affiliates of JPMorgan and another major financial institution. Bitdeer can terminate the agreement if required credit milestones are not met. The company estimates that an additional $500 million is required to complete the project and plans to raise debt to finance construction and support further AI developments.
The deal reflects Bitdeer's broader strategic shift beyond bitcoin mining, as electricity-intensive AI demand grows and miners increasingly seek longer-term, predictable infrastructure revenue streams.