Key Takeaways
- Bitdeer signed a 16-year, $4.7B AI deal for 121MW at Norway’s Tydal campus.
- Bitdeer shares jumped 12% as miners shift power assets toward longer-term AI revenue.
- Tydal’s first phase is due by Dec. 31, 2026, with $500M more needed to finish the build.
Bitdeer Secures 121 MW AI Contract at Norway Campus
Bitdeer Technologies shares surged 12% on Tuesday, Aug. 4, after the bitcoin miner turned AI infrastructure provider announced a long-term data center agreement valued at about $4.7 billion.
The company’s Norwegian subsidiary, Tydal Data Center AS, signed a colocation and services contract with Volta Tydal AS. Volta is part of an Nvidia Cloud Partner that will provide the capacity to an unnamed leading AI laboratory.
The project will deliver 121 megawatts of IT capacity, supported by about 133 MW of total power. All of the contracted computing load will be configured for Nvidia graphics processing units, with Dell Technologies serving as the equipment provider.
The initial agreement runs for 16 years. An eight-year renewal option could lift the total contract value to roughly $8 billion over 24 years. However, the tenant has the right to end the agreement without a fee after 10 years.
Renewable Power Anchors Norway Expansion
Bitdeer expects the Tydal campus to become one of Norway’s largest AI data centers. The facility will run entirely on renewable energy, including local hydropower, and is designed to achieve a power usage effectiveness ratio of about 1.1.
“This agreement is a key milestone in Bitdeer’s evolution as a global AI infrastructure platform,” Chief Financial Officer Michael Potter said.
The campus will be delivered in two equal phases across four data halls. The first phase is scheduled to begin operations by Dec. 31, 2026, followed by the second 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 during the second half of 2027.
Contract Offers High Margins but Requires More Capital
The lease carries an average payment of about $202 per kilowatt each month over the initial term. Electricity costs will be reimbursed by the tenant, while lease and services payments will rise 3% annually.
Bitdeer expects average yearly revenue of $2.4 million per IT megawatt and a net operating income margin of about 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 another $500 million is needed to complete the project. It plans to raise debt to finance construction and support further AI developments.
The agreement strengthens Bitdeer’s shift beyond bitcoin mining. As demand for electricity-intensive AI computing grows, miners with secured power and data center sites are increasingly seeking longer and more predictable infrastructure revenue.
