Bit Digital, Inc. has announced the acquisition of a metropolitan site for the expansion of its Tier-3 data center in Montreal, Canada. The company acquired the real estate and building for a build-to-suit 5MW Tier-3 data center expansion project as part of its strategy to expand its HPC data center footprint to 32MW during 2025.
The site, referred to as "MTL2," was purchased from a subsidiary of Alexandria Real Estate Equities, Inc. for CAD $33.5 million. The company expects to spend approximately CAD $27.6 million to develop the site to Tier-3 standards with an initial gross load of 5MW, and the site is expected to be completed and operational by May 2025.
MTL2, a 160,000 square feet site previously used as an encapsulation manufacturing facility, is planned to be retrofitted with advanced cooling technology, including direct-to-chip liquid cooling, to enhance energy efficiency and support high-performance workloads with 150KW rack density. The facility will be powered by 100% renewable hydroelectricity provided by Hydro-Quebec and offers potential for scalable growth aligned with market demand.
Bit Digital's CEO, Sam Tabar, emphasized the significance of the site acquisition, stating that it marks an important step forward in the company's data center growth plans. Leveraging the existing infrastructure, including over CAD $750 thousand worth of advanced HVAC equipment included in the purchase, is expected to lower development costs and accelerate the time to market.
The company is in the process of securing cost-effective mortgage financing for the project, and it aims to showcase Bit Digital's ability to cost-effectively finance its data center buildout in a non-dilutive manner.
Following these announcements, the company's shares moved 6.0%, and are now trading at a price of $3.91. For the full picture, make sure to review Bit Digital's 8-K report.
