Key facts
- AI infrastructure spending is projected to exceed $5 trillion by 2030, with energy demand posing a primary constraint.
- Bitzero Holdings has signed a binding letter of intent with OneQode Networks for its 110 MW Namsskogan, Norway data center.
- The 15-year lease agreement with OneQode is valued at approximately $2.6 billion.
- Bitzero has secured significant low-cost power capacity in Norway, Finland, and the United States.
- The Namsskogan lease is expected to generate $176 million to $178 million in annual revenue for Bitzero.
The rapid expansion of artificial intelligence infrastructure is creating unprecedented demand for energy, potentially leading to scarcity and becoming a primary constraint on growth. Bitzero Holdings, a company that initially focused on Bitcoin mining, has strategically positioned itself to capitalize on this trend by securing large amounts of low-cost electrical power in regions like Norway and Finland.
Bitzero's strategy involves leveraging its existing cash flow from Bitcoin mining to acquire access to affordable and stable power sources. This foresight has enabled the company to enter into significant agreements for AI data center capacity. On May 5, Bitzero signed a binding letter of intent with OneQode Networks to lease its entire 110 MW capacity at its Namsskogan, Norway data center site for 15 years, specifically for GPU-based AI workloads. This deal alone carries an implied value of approximately $2.6 billion over its term.
McKinsey estimates that global AI infrastructure spending could reach nearly $7 trillion by 2030, with over $5 trillion directly attributed to AI workloads. However, the industry is encountering significant hurdles in securing power access, including transformer shortages, interconnection delays, and grid congestion, with wait times for grid connections stretching beyond four years in major markets. This power access challenge is becoming more critical than capital acquisition for many AI infrastructure developers.
Bitzero's Namsskogan operation will generate revenue by leasing its power capacity and infrastructure to OneQode, which will operate the AI systems. This model allows Bitzero to capture recurring infrastructure revenue without directly bearing the high ongoing power costs. The lease is structured at approximately $135 per kilowatt per month with a 3% annual escalator, potentially generating $176 million to $178 million annually for Bitzero at full utilization. The company also controls additional expansion capacity in Norway and a one-gigawatt development campus in Finland, along with a significant presence in North Dakota, USA.
Other companies are also pivoting towards AI infrastructure, such as Hut 8 and Core Scientific. Investors are increasingly favoring companies that can convert mining infrastructure into AI compute capacity, with capital flowing into energy providers like NextEra Energy and infrastructure giants like Brookfield Corporation, recognizing that reliable power access is a critical asset in the digital economy. JLL estimates that global data-center capacity will nearly double by 2030, requiring approximately 100 GW of new supply, with 'speed to power' being the most crucial factor.