Bitdeer Secures $4.7B Norway Data Center Deal to Drive AI Expansion

The contract covers 121 megawatts of critical IT capacity, with the potential to reach $8 billion in total value should an eight-year renewal option be exercised. Under the agreement, Volta will supply global financing and technology relationships to support an unnamed AI laboratory, while Dell Technologies provides the necessary hardware. Bitdeer retains full ownership of the Tydal facility, which is currently being retrofitted to utilize NVIDIA reference designs.

Strategic Infrastructure Shift

Management estimates the project will yield an annual revenue of $2.4 million per IT megawatt, with operating margins hovering around 90%. However, these projections exclude significant overheads, including financing costs, depreciation, and corporate expenses. The company faces a substantial capital expenditure requirement of approximately $500 million to complete construction, which it plans to fund through new debt. While J.P. Morgan affiliates are expected to provide $1.3 billion in letters of credit to support Volta’s obligations, the deal remains subject to execution risks, including potential construction delays and equipment availability.

Following the announcement, Bitdeer shares experienced volatility, reflecting investor optimism tempered by the project's long-term financial requirements. The company, which reported a $159.5 million net loss in the first quarter, is now preparing to disclose further details regarding its financing and construction timelines during its earnings call scheduled for August 10.