AVAX One Technology Ltd. (NASDAQ: AVX) executed a letter of intent with BlueFlare Energy Solutions Inc. for development of powered land to support a 10 MW AI and high-performance computing facility in Alberta, Canada.

The project involves developing approximately 10 MW of total power capacity on a site within 50 miles of Calgary. BlueFlare will serve as development manager to identify, engineer, permit, procure and construct the facility, with a definitive agreement to be negotiated within 30 days.

The powered land will target Uptime Institute Tier 3 certification and utilize natural gas-fired generation as the primary power source, supplemented by grid interconnection, battery energy storage systems and diesel backup. The facility will provide minimum 7 MW of mission-critical power.

Total project cost is estimated at $30 million to $35 million, with payments tied to milestone deliverables including site selection, permitting, design, construction and commissioning. The powered land is expected to be ready for client deployment in the first quarter of 2027.

"We view AI and high-performance computing infrastructure as a natural extension of our broader mandate to build institutional-grade exposure to the next generation of digital infrastructure," said Chief Executive Officer Jolie Kahn.

The project prioritizes brownfield sites with existing natural gas generation assets to reduce permitting risks and accelerate development timelines. Once completed, the facility is expected to be contracted to an edge computing client under a long-term infrastructure agreement.

AVAX One describes itself as the first publicly traded Avalanche Treasury company, focused on the Avalanche blockchain network ecosystem.