AI
Bitdeer Lands $4.7B AI Deal as Bitcoin Miner Expands Beyond Mining
Bitdeer has secured a $4.7 billion AI data center lease in Norway, marking a major step beyond Bitcoin mining as demand for AI computing surge.
5h ago 4,280
BLOCKINSIDERLoadingBitdeer has secured a $4.7 billion AI data center lease in Norway, marking a major step beyond Bitcoin mining as demand for AI computing surge.
Bitcoin miner Bitdeer is making one of its biggest bets outside crypto. The company has signed a 16-year AI data center agreement worth about $4.7 billion, transforming part of its Norway mining infrastructure into a large artificial intelligence hub.
The move shows how Bitcoin miners are increasingly turning to AI as demand for high-performance computing continues to grow worldwide.
Bitdeer announced that its subsidiary, Tydal Data Center AS, signed a long-term lease and services agreement with Volta Tydal AS, a subsidiary of NVIDIA Cloud Partner Volta.
Under the deal, Bitdeer will provide 121 megawatts (MW) of AI computing capacity at its Tydal campus in Norway. The facility will be designed to run NVIDIA GPU-powered AI workloads for a leading AI laboratory, while Dell Technologies will provide the computing infrastructure.
The agreement is expected to generate around $4.7 billion in contracted revenue over the initial 16 year term. If the tenant exercises an optional eight year extension, the total contract value could increase to nearly $8 billion over 24 years.
The transaction is still subject to customary closing conditions before becoming effective.
One of the biggest strengths of the agreement is the financial protection built into the contract.
Bitdeer said affiliates of J.P. Morgan and another major global financial institution are expected to provide approximately $1.3 billion in letters of credit. These guarantees help protect Bitdeer if the tenant fails to meet its payment obligations.
The company also expects the project to deliver an estimated 90% net operating income (NOI) margin, while lease payments will increase by 3% annually throughout the contract.
Following the announcement, Bitdeer shares climbed around 4% to trade at $11.72.
The AI industry has become one of the fastest-growing users of computing power, creating a major opportunity for companies that already own large data centers and energy infrastructure.
Bitcoin miners already operate facilities with high electricity capacity, cooling systems, and networking equipment. Those same resources can also support AI and high-performance computing (HPC), allowing miners to generate new revenue beyond cryptocurrency mining.
Michael G. Potter, Chief Financial Officer of Bitdeer, said:
"This agreement is a key milestone in Bitdeer's evolution as a global AI infrastructure platform."
He added that the project combines advanced NVIDIA technology with carbon-free energy to build one of Norway's largest AI data centers.
The company has been steadily reducing its dependence on Bitcoin mining. Last month, Bitdeer announced a $36 million investment in a new manufacturing facility in Nevada to expand production of its own mining hardware instead of relying on outside suppliers.
Bitdeer's new AI campus is located in Tydal, Norway, an area known for abundant renewable hydropower and reliable electricity infrastructure.
The data center will operate using 100% renewable energy and is expected to achieve a Power Usage Effectiveness (PUE) of around 1.1, making it one of Norway's most energy efficient AI facilities.
The site also benefits from dual grid connectivity, helping ensure stable power for AI systems that require uninterrupted computing around the clock.
Haakon Bryhni, Chairman of Tydal Data Center AS, said that,
"Tydal combines one of Norway's strongest energy locations with the world's most advanced AI infrastructure."
The project will be built in two phases, with the first expected to start by December 2026 and the second by March 2027. Bitdeer is also adding 47 MW of extra AI capacity and plans to invest around $500 million to expand the site.
The deal shows that Bitcoin miners are no longer relying only on mining, but are also using their power infrastructure to grow in the fast-moving AI industry.
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