Bitdeer, the cryptocurrency mining company co-founded by Jihan Wu, has announced a landmark $4.7 billion colocation and services agreement for an AI data center project in Norway. The 16-year deal, executed through its subsidiary Tydal Data Center AS with Volta Tydal AS, will deliver 121 megawatts of IT capacity across four data halls to support high-performance AI computing. The agreement includes an eight-year renewal option, potentially lifting the total contract value to approximately $8 billion over 24 years.
According to the disclosure, Bitdeer projects average annual revenue of around $2.4 million per IT megawatt, with 3% annual escalators on both lease and services components. Benchmark analyst Mark Palmer estimated that the contract could generate roughly $294 million in average annual revenue and about $264 million in average annual net operating income, with a net operating income margin near 90% against roughly $500 million in remaining capital expenditures. Volta’s obligations are expected to be backed by approximately $1.3 billion in letters of credit arranged by JPMorgan and another financial institution, covering about 28% of the base-term value. Bitdeer retains the right to terminate if milestones tied to the credit backstop are not met, while Volta holds a no-fee termination right after 10 years, reducing the firmly committed portion to about $2.7 billion.
The news filled the gaps from an initial, detail-light announcement on June 29 that had caused BTDR shares to drop roughly 7%. On Tuesday, premarket trading saw a sharp surge before the stock settled at $12.24, up 8%. Bitdeer emphasized the project’s role in building sustainable AI infrastructure and its ambition to position Norway as a leading destination for green AI computing.
