Bitzero Holdings signs Norway data centre development agreement
Initial civil works are complete, but the issuer disclosed no contract price, funding commitment or construction timetable.
Ines Halvorsen
On Tuesday, development plans for a 110-megawatt Norwegian data centre gained a construction partner as Bitzero Holdings Inc. CNSXAIBZ.U NASDAQAIBZ FRA000 announced a development agreement with Skanska, part of the group headed by Skanska AB STOSKA-B OTCMKTSSKBSY. The company estimated on June 15 that a proposed 15-year lease could generate about US$2.6 billion; Tuesday's announcement disclosed no development price or funding commitment.
Skanska is the development counterparty, but Bitzero did not disclose the agreement's duration, payment schedule or a binding construction start date. Tuesday's release also does not specify how many megawatts the development agreement covers.
Bitzero shares closed at US$2.95 on Nasdaq at 4 p.m. EDT on Monday, according to the NASDAQAIBZ quote on Google Finance. That price precedes Tuesday's announcement.
Bitzero develops energy infrastructure for data centres and has four locations across North America and the Nordics, according to Tuesday's release. It says initial civil works at the Norway site are complete, with further procurement, development and leasing updates planned.
In its June 15 update, Bitzero described the Norway development as a planned 110-megawatt campus. It outlined a binding letter agreement to lease the full capacity for 15 years, while saying a definitive lease had not been executed.
The June disclosure made completion of a definitive lease subject to due diligence, technical specifications and credit support arrangements. Tuesday's announcement provides no update on execution of that lease.
The US$2.6 billion lifetime revenue estimate in the June 15 release excluded annual escalation adjustments, power costs and phased deployment timing. It was an estimate for the proposed lease over its full term, with definitive commercial documentation still outstanding at that date.
"With demand for Nordic capacity growing, we are positioning the Norway site for competitive and high-quality delivery," Bitzero founder and chief executive Mohammed Bakhashwain said in Tuesday's release.
Power Equipment Has No Firm Arrival Date
On June 15, Bitzero said foundations were under construction for two 60-megawatt transformers, with delivery scheduled for September. Tuesday's release says all long-lead power items are expected to arrive shortly, without identifying a calendar date or confirming delivery.
The June 15 update also said the regional grid operator was expanding its substation to accommodate new switchgear. That disclosure linked the work to the next phase of power infrastructure development and future capacity growth. Tuesday's announcement provides no separate completion date for the grid work.
Bitzero expects its delivery arrangements to span engineering and design, procurement, construction and systems integration. The Oct. 20 release lists access to sufficient financing, permits, power capacity and grid connections among its assumptions for completing the build-out.
The announcement publishes no electricity price per megawatt-hour and identifies no specific permitting decision or regulator's file. It also gives no capital budget or breakdown of the developer's funding obligations.
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Bitzero plans further procurement, development and leasing updates without a publication date. Its June 15 disclosure targeted service delivery in 2027, but Tuesday's announcement provides no dated construction or commissioning schedule.
