Arkon Energy Raises $110 Million to Triple Its Bitcoin Mining Capacity and Launch AI Cloud Service
Sydney, Australia, 22 December 2023
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December 22, 2023 11:25 AM Eastern Standard Time
Arkon Energy, a data centre infrastructure business, has announced the first tranche close of a $110M private funding round to support operational expansion. The fresh capital will triple Arkon’s US data center capacity and follows a 300MW multi-site development and management deal across six new facilities with Sabre56.
Bluesky Capital Management led the $110M round, with follow-on investment from Kestrel 0x1, Nural Capital. $80M will support the acquisition of an additional 200MW capacity in the US diversified across new data centres.
$30M of the total raise has been allocated to funding development of an AI cloud service project at Arkon’s existing 30MW data center in Norway. This will service the burgeoning Generative AI and Large Language Model training markets.
The new investment allows Arkon to accelerate the expansion of its data centre assets across the US and Europe to meet the exploding global demand for high-performance computing. Arkon Energy uses a significant amount of renewable and low-cost power in advantaged locations to power its data centers.
Arkon Energy Founder and CEO Joshua Payne said: “We are extremely excited to announce the largest private funding round by a Bitcoin Mining platform in 2023. Arkon Energy will use this growth capital to become a global top 5 Bitcoin data centre operator in terms of size and power cost efficiency. In addition, the company is fully funded to launch a Renewable AI Cloud service for the European Generative AI and LLM training markets from our 30MW Norwegian Data Centre. We look forward to announcing this project to the market in January alongside several strategic partners.”
Commenting on the partnership with Sabre 56, he added: “This marks a transformative expansion to the Arkon Energy US portfolio, bringing the company into a global top five position in terms of operating size and power cost efficiency. We look forward to strengthening our partnership with Sabre56 on the construction and operation of this portfolio expansion to 300MW and beyond.”
Sabre 56 CEO Phil Harvey said: “We are excited to announce closing this pivotal deal with Arkon Energy, marking the conclusion of a busy and productive year for Sabre56. The deal marks our continued commitment to supporting the mining industry, doing so in partnership with a valued ally.”
Aided by its private raise, Arkon’s operating portfolio will reach 300MW across six facilities in the US by Q3 2024. Coupled with its flagship 30MW operation in Norway, the expansion will make Arkon one of the largest data center owners worldwide by operating size and power cost efficiency.
Arkon is rapidly expanding its US data center asset portfolio with the acquisition of newly constructed facilities from Sabre56, adding a further initial 50MW of capacity to Arkon’s existing 100MW. The deal extends to the development of an additional 150MW of new-build sites in Texas and North Carolina which are due for completion by August 2024.
Arkon continues to seek new opportunities to expand its data centre services across the US and globally. In the new year, the company will be announcing more details about its new cloud-based AI platform.
About Arkon Energy
Arkon is a global data centre infrastructure company. We buy, build, and operate world-class, sustainably powered data centres. Our business and portfolio are institutional grade, diversified across stable jurisdictions with strong revenues and exceptional growth, underpinned by reliable low-cost sustainable power, and a robust and growing range of end-use cases. Arkon's data centres are local consumers in the physically constrained grids where the electricity is generated, helping sustain local economies with modern industrial and technical employment opportunities.
For more information visit https://www.arkonenergy.com/
About Sabre56
Sabre56 is a leading digital asset consultancy specialising in data centre infrastructure and operations. Its management team comprises pioneers with many years of experience in the crypto industry and digital asset management, plus backgrounds in security and consultancy. Sabre56 consults a global client base, including North America, South America, the Middle East, the Nordics and Eurasia - working with renowned names in the industry.
Via its end-to-end consultancy, Sabre56 designs, builds and operates the world’s most technologically advanced, efficient and cost effective blockchain data centers.
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