Bitdeer inks $4.7B Norway AI colocation contract; shares jump

Bitdeer has struck a long-term AI colocation agreement in Norway that could materially expand its data center business and sparked a sharp rally in its shares. Bitdeer's Tydal Data Center unit on Aug. 4 signed a 16-year colocation and services contract with Volta Tydal AS to develop an AI and high-performance computing (HPC) campus in Norway. Under the deal, Volta will receive 121 MW of critical IT capacity supported by roughly 133 MW of total power. Bitdeer said the initial 16-year term represents about $4.7 billion of contracted payments. A one-time renewal option for eight additional years would raise the potential total to about $8 billion across 24 years, though the extension is not assured. Volta plans to operate an AI lab at the site using NVIDIA GPUs, with Dell Technologies serving as the technology provider. The end customer has not been disclosed. The agreement underscores Bitdeer's shift of part of its power portfolio away from pure Bitcoin mining toward AI colocation, which can generate steadier long-duration contracted revenue compared with the cyclical and volatile economics of mining. Commercial terms disclosed by the company indicate the lease averages about $202 per kilowatt per month during the first 16 years. The tenant reimburses electricity costs, and contract payments escalate 3% annually. Management projects average annual revenue of about $2.4 million per IT MW and a net operating income margin near 90%. Bitdeer noted these are company estimates (non-GAAP) that exclude financing costs, depreciation, corporate expenses and other items affecting consolidated earnings. Bitdeer will retain full ownership of the Tydal site and said the transaction did not include issuing shares or warrants. On project scope and timing, Bitdeer previously hired Data Center Installations AS in March to convert Tydal into a roughly 180 MW gross facility based on NVIDIA reference designs. The Volta contract covers about 133 MW of that planned gross capacity. Bitdeer is also developing two additional halls totaling 47 MW targeted at potential AI/HPC customers in the second half of 2027. The project is expected to require approximately $500 million of capex, or roughly $4 million per contracted IT MW. Bitdeer said it plans to finance construction with debt, without providing terms such as cost, maturity or structure. Credit support for Volta's obligations is expected to include about $1.3 billion in letters of credit arranged by affiliates of J.P. Morgan and another global bank, subject to customary conditions. Bitdeer can terminate the agreement if Volta fails to meet specified milestones linked to that credit package. Volta also holds a no-fee termination right after 10 years despite the stated 16-year base term. Risks include construction delays, financing costs, equipment availability and customer performance, any of which could affect the timing or value of the expected payment stream. Bitdeer shares surged intraday after the announcement, with reports citing gains as high as 23% before the stock gave back some of the move. The latest verified quote was about $11.37, roughly 7.8% above the prior close at the time of the release. Bitdeer continues to operate as a hybrid player. In June, it reported 73 EH/s of self-mining capacity and produced 990 BTC for the month. The company also cited roughly $76 million in AI cloud annualized run-rate revenue at 95% utilization. On recent financials, Bitdeer reported $188.9 million in Q1 revenue, a $159.5 million net loss, $297.7 million in cash and restricted cash as of March 31, and borrowings near $1.9 billion. Investors will focus next on Bitdeer's second-quarter results, due Aug. 10 ahead of an 8 a.m. ET conference call. Key watch items include financing plans and costs, construction progress and timeline at Tydal, the accounting treatment for the contract, and expectations for when Tydal revenue may begin to flow into reported results. Bitdeer's pivot reflects a broader trend among power-rich Bitcoin miners, including IREN and HIVE, repurposing capacity for AI workloads to pursue more predictable contracted revenue, albeit with heavy upfront capital needs and dependence on high-quality customers. Bottom line: The Volta contract is a major commercial milestone for Bitdeer's AI strategy, while its ultimate value will hinge on financing, execution and whether the credit supports and optional extension materialize as anticipated.