Key facts
- Big Tech companies have doubled their debt to $350 billion to fund AI spending.
- Global data center power demand could rise by 165% by the end of the decade.
- Utilities are quoting two- to four-year wait times for power feasibility studies.
- Bitzero controls over 1 gigawatt of clean power capacity in Norway, Finland, and North Dakota.
- Bitzero's all-in electricity cost is approximately 3.5¢ per kWh.
- Amazon secured up to 1,920 megawatts of carbon-free nuclear power from Talen Energy.
- Microsoft secured 835 megawatts of carbon-free power from Constellation Energy.
Big Tech companies have doubled their debt load to $350 billion to finance a significant increase in artificial intelligence (AI) spending. This surge in AI development has created a critical bottleneck in securing reliable and scalable electricity, shifting the focus from data to power as the most valuable resource.
Utilities are currently facing two- to four-year wait times for power feasibility studies, and companies like Google have encountered hurdles in securing power for new data centers. Goldman Sachs research indicates that global data center power demand could increase by 165% by the end of the decade compared to 2023 levels. This scarcity is driving tech giants to secure long-term power agreements. Amazon has signed a deal with Talen Energy for up to 1,920 megawatts of carbon-free nuclear power, while Microsoft has entered into a 20-year agreement with Constellation Energy to restart the Three Mile Island Unit 1 nuclear plant, securing 835 megawatts of carbon-free power.
Companies like Bitzero are positioning themselves to meet this demand, leveraging existing infrastructure in regions with abundant, cost-effective, and sustainable electricity, such as Norway, Finland, and North Dakota. Bitzero controls over 1 gigawatt of potential clean power capacity, with an all-in electricity cost around 3.5¢ per kWh. The company has already secured a binding letter for a 15-year lease covering the full 110-megawatt capacity of its Norway campus with OneQode Networks, potentially generating $2.6 billion in contracted revenue.
Bitzero's model, which evolved from the energy demands of Bitcoin mining, allows it to control its own high-voltage lines and direct connections to power plants, bypassing utility bottlenecks. The company's Bitcoin mining operations also generate revenue, with a cost of approximately $50,000 per coin, contributing to its financial stability. Kevin O’Leary, a strategic investor in Bitzero, views the company as a key player in providing critical power resources to both AI data centers and Bitcoin miners, likening its role to that of a power company.