Bitdeer Technologies Group (NASDAQ: BTDR) announced it has executed a 16-year colocation lease and services agreement for its Tydal campus in Norway, representing approximately $4.7 billion in contracted revenue over the initial base term.

The agreement, signed through Bitdeer's subsidiary Tydal Data Center AS, is with Volta Tydal AS, a subsidiary of Volta, an Nvidia Cloud Partner. The Tydal facility will deliver 121 IT megawatts, supported by an estimated 133 gross megawatts of capacity. Volta's end customer is described as a leading AI lab, with Dell Technologies serving as the technology provider. All 121 IT MW will be configured to run Nvidia GPUs.

The lease is structured as a modified gross arrangement at an average rate of approximately $202 per kilowatt per month over the initial 16 years, with electricity costs reimbursed by the tenant. An 8-year renewal option could increase the total contract value to approximately $8.0 billion over 24 years. The tenant holds a no-fee termination right at year 10. The agreement includes 3% annual escalators on both the lease and services components.

Volta's obligations are anticipated to be backed by Letters of Credit arranged by affiliates of J.P. Morgan and another financial institution, totaling approximately $1.3 billion. Bitdeer retains 100% ownership of the Tydal campus, and no equity securities or warrants were issued as part of the transaction.

Bitdeer estimates remaining capital expenditure of approximately $500 million, or roughly $4.0 million per IT MW. Phase 1 is targeted to commence December 31, 2026, with Phase 2 targeted for March 31, 2027. The company said it intends to raise additional debt capital to fund infrastructure growth, including at Tydal.

The company estimates a net operating income margin of approximately 90% on the project. Bitdeer is also developing two additional data halls at the site totaling 47 gross MW for future use in the second half of 2027, out of a total campus capacity of 180 gross MW.