Bitdeer Technologies Group said on Aug. 4 that its Tydal Data Center subsidiary signed a 16-year colocation and services agreement with Volta Tydal AS for an artificial intelligence and high-performance computing campus in Norway.
The contract covers 121 megawatts of critical IT capacity, supported by about 133 MW of total power. Bitdeer expects approximately $4.7 billion in contracted payments during the initial term. A one-time eight-year renewal option could raise the potential contract value to about $8 billion over 24 years.
Bitdeer’s $4.7 billion deal contracts 121 MW
The agreement assigns the full 121 MW to Volta, which plans to support a leading AI laboratory using NVIDIA graphics processing units. Dell Technologies will act as technology provider, according to Bitdeer’s announcement. The parties did not name the end customer.
Bitdeer said the lease averages about $202 per kilowatt each month during the first 16 years. The tenant will reimburse electricity costs, while contract payments will rise 3% annually. Management estimates average annual revenue of $2.4 million per IT MW and a project net operating income margin of roughly 90%.
Those figures are company projections rather than GAAP revenue or operating profit. Bitdeer said total contract value assumes full performance of the agreement. The company’s estimated margin also excludes financing costs, depreciation, corporate expenses and other items that can affect consolidated earnings.
Tydal converts Bitcoin infrastructure into AI capacity
The deal advances Bitdeer’s plan to shift part of its power portfolio from Bitcoin mining toward AI colocation. In March, the company hired Data Center Installations AS to convert Tydal into a 180 MW gross facility built around NVIDIA reference designs. Bitdeer said the completed campus could become one of Norway’s largest AI data centers.
The Volta contract uses 133 MW of that planned gross capacity. Bitdeer is developing two additional halls totaling 47 MW for possible AI and HPC customers during the second half of 2027. The company will retain full ownership of the site, and it issued no shares or warrants in connection with the Volta transaction.
Bitdeer has been expanding AI infrastructure while retaining a large Bitcoin mining operation. Its June update showed 73 EH/s of self-mining capacity, 990 BTC produced during the month and about $76 million in AI cloud annualized run-rate revenue at 95% utilization.
Financing and termination terms temper the headline value
The project still requires about $500 million of capital expenditure, or approximately $4 million per contracted IT MW. Bitdeer plans to raise additional debt to finance construction and other infrastructure projects. Leading financial institutions have been engaged, but the company has not disclosed the expected borrowing cost, maturity or final structure.
Volta’s obligations are expected to receive about $1.3 billion in letters of credit arranged by affiliates of J.P. Morgan and another global financial institution. The support remains subject to customary conditions. Bitdeer may terminate the agreement if Volta misses specified milestones tied to that credit package.
The tenant also has a no-fee termination right after ten years, despite the stated 16-year base term. The optional eight-year extension is not guaranteed. Construction delays, financing costs, equipment availability and customer performance could therefore reduce the timing or value of the expected payment stream.
Bitdeer had disclosed the Tydal lease in June but said it remained subject to conditions outside its control. The Aug. 4 release supplies the commercial terms and identifies Volta as the counterparty, marking a step beyond the earlier conditional announcement.
BTDR rises before Bitdeer’s Aug. 10 earnings
Bitdeer shares rose after the announcement. The latest verified market quote placed BTDR near $11.37, about 7.8% above the previous close. Earlier reports described a larger intraday move, but the stock had given back part of that gain by the latest reading.
The rally reflects investor interest in long-duration AI infrastructure contracts, though the stock remains exposed to construction and financing risk. Bitdeer reported $188.9 million in first-quarter revenue, a $159.5 million net loss and $297.7 million in cash and restricted cash at March 31. Borrowings stood near $1.9 billion.
In related coverage, crypto.news examined how Bitcoin miners including Bitdeer, IREN and HIVE are repurposing power-rich facilities for AI workloads. The strategy can produce steadier contracted revenue than mining, but it also requires large upfront spending and dependable customers.
Bitdeer will report second-quarter results on Aug. 10 before an 8 a.m. Eastern Time conference call. Investors will be watching for financing details, construction progress, accounting treatment and any update on when the Tydal revenue can begin entering reported results
