Bitdeer Technologies Group (NASDAQ: BTDR) has entered into a 16-year colocation lease for 121 IT MW at its Tydal campus in Norway, with roughly $4.7 billion in contracted payments from Volta Tydal AS.
The lease and services agreement carries an average rate of approximately $202 per kW-month during the initial term, with 3% annual escalators. Electricity will be reimbursed by the tenant under a modified-gross structure.
An eight-year renewal option could increase total contract value to approximately $8 billion over 24 years. However, Volta has a no-fee termination right after 10 years. Bitdeer’s contract values represent scheduled lease and services payments assuming full performance, rather than projected GAAP revenue.
Credit support and project financing
Volta’s obligations are expected to be backed by about $1.3 billion of credit support in the form of letters of credit arranged by affiliates of J.P. Morgan and another global financial institution. The arrangements are still subject to customary conditions, and Bitdeer may end the agreement if Volta fails to meet specified credit-backstop milestones.
Bitdeer estimates approximately $500 million of remaining capital expenditure, equivalent to about $4 million per contracted IT MW. The company retains full ownership of the campus and issued no equity securities or warrants as part of the transaction.
Bitdeer intends to raise additional debt for Tydal and its broader infrastructure program. Management expects the project financing to provide excess capital for other AI and HPC developments, although financing terms were not disclosed.
Lease economics and delivery schedule
Bitdeer expects average annual revenue of approximately $2.4 million per IT MW during the base term and estimates an NOI margin of about 90%. Its NOI calculation excludes corporate overhead and several noncash expenses, making the measure non-GAAP and potentially different from peers’ calculations.
The 121 MW of critical IT load will be backed by an estimated 133 gross MW and delivered across four data halls in two equal phases. Phase one is targeted to start on Dec. 31, 2026, with phase two to follow on March 31, 2027.
Bitdeer is also developing two additional halls representing 47 gross MW for delivery in the second half of 2027. Those halls form part of the Tydal campus’s planned 180 gross MW capacity but are outside the announced lease.
NVIDIA capacity for an AI lab
Volta plans to configure the entire contracted capacity for NVIDIA GPUs serving an unidentified leading AI lab, with Dell Technologies acting as technology provider. The site is designed for an estimated PUE of 1.1 and will use renewable power, including local hydropower.
The agreement converts a large portion of Bitdeer’s owned Norwegian power footprint into long-duration colocation revenue. The remaining milestones are completing the credit support, raising project debt and delivering both phases on schedule and within the remaining capex budget.
