Key facts
- Seven major tech companies committed to covering the costs of electricity and grid infrastructure for their AI projects.
- The five largest AI infrastructure providers plan to spend $660-$690 billion on capital expenditure in 2026.
- New power plants typically take 5-10 years to become operational, creating a supply bottleneck for AI demand.
- Bitzero secured a 15-year lease for 110 MW at its Norway site with AI cloud provider OneQode, valued up to $2.6 billion.
- Bitzero's Finland campus is slated to support up to 1 GW of capacity, with initial deployment targeting mid-2027.
- Bitzero's existing operations include profitable Bitcoin mining, which covers its cost base.
Major technology companies are facing a significant hurdle in their rapid expansion of artificial intelligence capabilities: the availability of electricity. In March, leaders from Microsoft, Google, Amazon, Meta, OpenAI, Oracle, and Elon Musk’s xAI met with President Trump at the White House, signing a pledge to cover the costs of new electricity and grid infrastructure required for their AI projects. This commitment underscores the immense power demands of AI, with the five largest providers planning to spend between $660 billion and $690 billion on capital expenditure in 2026, largely directed towards AI infrastructure.
However, the timeline for building new power generation facilities, whether traditional or nuclear, is lengthy, typically taking five to ten years. This creates a potential bottleneck, as AI use is increasing daily. For instance, Microsoft's deal to restart the Three Mile Island reactor is not expected to deliver power until 2027 at the earliest, and Google's Kairos Power reactor is not anticipated online until 2030. Even ambitious ventures like OpenAI, Oracle, and SoftBank's $500 billion Stargate project, aiming for nearly seven gigawatts of planned capacity, face delays in grid integration and power generation.
Bitzero, a company that has spent the past four years securing low-cost, renewable power assets, aims to bridge this gap. Its flagship facility in Norway utilizes 100% hydroelectric power at 3-4 cents per kilowatt-hour, significantly lower than typical U.S. data center costs. Norway has since capped new data center projects at five megawatts, making Bitzero's previously secured concessions difficult to replicate. The company recently announced a binding letter for a 15-year lease with AI cloud provider OneQode for the full 110 megawatts at its Norway site, valued up to $2.6 billion, with deployment targeted for the first half of 2027. Bitzero's Finland campus is also being developed to support up to 1 GW of capacity, with initial deployment of 80 MW planned for mid-2027.
Beyond AI infrastructure, Bitzero's power assets already generate revenue through a profitable Bitcoin mining operation, which operates at a lower cost base due to the cheap hydroelectric power. This existing revenue stream provides financial stability, allowing AI contracts to serve as additional upside. Investor Kevin O'Leary has highlighted Bitzero's strategic position, noting that the insatiable demand from both Bitcoin miners and AI data centers is leading to a fight for power contracts, a situation Bitzero is well-positioned to capitalize on.