Bitdeer to create AI data center in Norway under $4.7 billion agreement

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Bitdeer to create AI data center in Norway

Who will operate the AI infrastructure

Under the agreement, the full 121 MW capacity will be allocated to Volta, which plans to use the facility to support a major artificial intelligence laboratory. The project will rely on NVIDIA graphics processing units, while Dell Technologies will serve as the technology provider.

Bitdeer did not disclose the identity of the end customer but said the facility will focus on artificial intelligence and high-performance computing workloads.

The average lease price during the first 16 years will be around $202 per kilowatt of capacity per month. The tenant will separately reimburse electricity costs, while contract payments will increase by 3% annually.

Bitdeer expects the project to generate approximately $2.4 million in annual revenue per IT MW, with an operating margin of around 90%. The company emphasized that these figures are projections and do not represent official GAAP financial results.

Bitcoin mining infrastructure is being adapted for AI

The deal marks another step in Bitdeer’s strategy to shift part of its energy portfolio from Bitcoin mining toward artificial intelligence infrastructure services.

In March, the company hired Data Center Installations AS to convert the Tydal site into a facility with up to 180 MW of capacity based on NVIDIA reference designs. Bitdeer expects the completed data center could become one of Norway’s largest AI facilities.

The Volta contract uses 133 MW of the planned capacity. Bitdeer intends to allocate the remaining 47 MW to additional AI and high-performance computing customers in the second half of 2027.

Bitdeer will retain full ownership of the site and did not issue any shares or warrants as part of the transaction.

At the same time, the company continues to expand its Bitcoin mining operations. According to its June update, Bitdeer had 73 EH/s of self-mining capacity, produced 990 BTC during the month and generated approximately $76 million in annualized AI cloud revenue at 95% capacity utilization.

Project requires significant investment

Despite the size of the contract, building the facility will require substantial capital spending. Bitdeer estimates construction costs at approximately $500 million, or about $4 million per contracted IT MW.

The company plans to raise additional debt financing to support construction and other infrastructure projects. Bitdeer is already in discussions with major financial institutions but has not disclosed the expected borrowing terms.

Volta’s obligations will be supported by approximately $1.3 billion in letters of credit arranged by affiliates of JPMorgan and another global financial institution. However, Bitdeer may terminate the agreement if Volta fails to meet certain requirements related to the credit support package.

The tenant also has a right to terminate the agreement without fees after ten years of operations, despite the stated 16-year contract term. The optional eight-year extension is not guaranteed.

As a result, the final value of the agreement may depend on construction timelines, financing costs, equipment availability and the customer’s ability to meet its obligations.

Investors bet on miners’ transition to AI

Following the announcement, Bitdeer shares moved higher. BTDR traded near $11.37, around 7.8% above the previous close.

Investor interest reflects expectations that long-term AI infrastructure contracts could provide more stable cash flows compared with traditional Bitcoin mining. However, the company still faces construction, financing and customer acquisition risks.

In the first quarter, Bitdeer reported revenue of $188.9 million, a net loss of $159.5 million and approximately $297.7 million in cash and cash equivalents as of the end of March. The company’s borrowings totaled about $1.9 billion.

Bitdeer will report its second-quarter results on August 10. Investors will be watching for details on project financing, Tydal construction progress, accounting treatment for future revenue and the timeline for recognizing income from its new AI business.

Bitdeer is also expanding its mining equipment production operations in the United States.

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