New York-based Bit Digital, Inc. (Nasdaq: BTBT), a global leader in high-performance computing (HPC) infrastructure and digital asset production, has announced the acquisition of real estate for a 5MW Tier-3 data center expansion project in Pointe-Claire, Montreal. This strategic move aligns with the company’s ambitious plan to expand its data center footprint to 32MW by 2025 as part of its previously announced 288MW proprietary pipeline.
Details of the Acquisition
- Purchase Value: The property, named “MTL2,” was acquired for CAD $33.5 million (approximately USD $23.3 million).
- Funding: The acquisition was initially funded with cash on hand, and Bit Digital is securing mortgage financing for both the purchase and subsequent infrastructure capital expenditure (capex).
- Development Costs: Bit Digital plans to spend an additional CAD $27.6 million (approximately USD $19.3 million) to develop the site to Tier-3 standards.
- Timeline: The development is expected to be completed and operational by May 2025.
Site Specifications and Sustainability Features
MTL2, a 160,000-square-foot property previously used as an encapsulation manufacturing facility, will be transformed into a state-of-the-art data center. Key features include:
- Advanced Cooling Technology:
- Implementation of direct-to-chip liquid cooling to enhance energy efficiency and support high-performance workloads such as AI.
- Rack density capacity of 150kW, catering to next-generation HPC demands.
- Sustainability Initiatives:
- Powered by 100% renewable hydroelectricity from Hydro-Quebec.
- Collaboration with third-party vendors to introduce a heat reject loop, further enhancing the site’s sustainability.
- Scalable Growth Potential:
- MTL2 offers opportunities for further expansion based on market demand, solidifying Bit Digital’s leadership in scalable HPC infrastructure.
Strategic Advantages
- Location: Situated in Pointe-Claire, QC, the site benefits from being in one of Montreal’s most sought-after commercial real estate areas.
- Cost Savings:
- Over CAD $750,000 worth of advanced HVAC equipment included in the purchase reduces development costs.
- Leveraging existing infrastructure accelerates time to market, a key component of Bit Digital’s strategy.
- Alignment with Customer Needs: The data center’s timeline coincides with the requirements of a new customer planning to utilize capacity with Nvidia GPUs.
CEO Comments
Sam Tabar, CEO of Bit Digital, expressed optimism about the acquisition:
“This acquisition is a major milestone in our data center growth strategy. The site’s premium infrastructure and prime location allow us to develop a top-tier facility at a reduced cost. Our ability to finance this project cost-effectively, combined with leveraging renewable energy, demonstrates our commitment to sustainability and operational efficiency. This project underscores Bit Digital’s dedication to delivering innovative and efficient HPC solutions.”
Financial Strategy and Future Outlook
Bit Digital is in the process of securing non-dilutive mortgage financing for the MTL2 project, reflecting its strategy to grow without impacting shareholder equity. The company believes this approach will serve as a benchmark for cost-effective financing in the HPC sector.
Looking ahead, Bit Digital remains focused on meeting its goal of expanding to 32MW during 2025 while enhancing its reputation for providing sustainable, cutting-edge infrastructure solutions.
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