Key Takeaways
Bitzero Holdings Inc. signed a binding letter with OneQode Networks Pte. Ltd. for a 15-year, 110-megawatt lease at its Norway data center, a deal valued at approximately $2.6 billion that targets the surging demand for high-performance artificial intelligence computing.
"This letter with OneQode marks a pivotal milestone for Bitzero," Mohammed Bakhashwain, founder and chief executive officer of Bitzero, said. "A lease with OneQode would represent exactly the kind of large-scale, high-performance customer demand we intended the site to support."
Under the terms, OneQode will pay Bitzero approximately $2.6 billion in total revenue over the 15-year term, excluding power costs and annual adjustments. Bitzero estimates the site could generate a net operating income margin of 85%, implying about $151 million in annual income if the facility operates at its full 110MW capacity. The initial commissioning for the large-scale GPU deployment is targeted for the first half of 2027.
The deal would anchor a significant, long-term revenue stream for Bitzero (OTCQB: BTZRF) and solidify its role as an infrastructure provider for the power-intensive AI industry. However, the agreement is not yet definitive. Completion is subject to mutual due diligence, regulatory approvals, credit support agreements, and the execution of final transaction documents, with no assurance that the conditions will be met.
"The AI market is moving quickly, but the bottleneck is no longer just access to GPUs. It is access to power, network, cooling, land, deployment capability, and the operational model," Matthew Shearing, founder and CEO of OneQode, said. "Bitzero has done the hard work of developing a world-class site in Norway with the fundamentals required for this type of deployment."
The Bitzero site is located in Norway's NO4 region, one of Europe's most cost-efficient and sustainable power markets, and runs on hydroelectric power. This 110MW lease represents the full initial capacity of the data center in Namsskogan. Bitzero operates three other data center sites, including its Kokemäki, Finland campus with a planned capacity of up to 1 gigawatt, as part of its strategy to diversify toward high-performance computing and AI workloads.
This article is for informational purposes only and does not constitute investment advice.
