Bitdeer Secures $400 Million AI Contract for Malaysian Data Center

Bitdeer Signs Major AI Contract in Malaysia

Bitdeer AI has announced a significant contract valued at approximately $400 million, following a five-year agreement aimed at utilizing about 50% of its A102 data center capacity in Malaysia. This contract is expected to generate substantial revenue before the facility is operational, starting in the first quarter of 2027.

Details of the Contract

The agreement, involving an undisclosed customer with a “high credit quality,” covers half of the available capacity at Bitdeer’s new facility. Although specific pricing details were not disclosed, the total expected revenue highlights the potential for profitability as operations commence. This proactive measure ensures that nearly half of the facility’s output is secured prior to its energization, mitigating risks associated with uncommitted capacity.

Expanding AI Cloud Infrastructure

Bitdeer has set ambitious goals, targeting 350 megawatts of AI cloud data center capacity by early 2028. This contract is part of a broader strategy to bolster their AI cloud services, which has seen annual recurring revenue grow to around $69 million, according to recent company disclosures. The new Malaysian facility is integral to this multi-year buildout plan.

Bitdeer’s Transition to AI

Originally a Bitcoin mining company, Bitdeer has shifted its focus towards artificial intelligence and high-performance computing. Their AI operations are flourishing, developing alongside the existing mining business that includes locations in the U.S., Bhutan, Norway, and Ethiopia. Recent agreements, such as a 16-year lease for a 121-megawatt AI infrastructure in Norway, further underscore this strategic transformation.

Market Response and Future Outlook

The announcement of the Malaysian contract has been positively received, with Bitdeer’s shares rising approximately 7% during trading on the day of the announcement, and further gains in pre-market trading the following day. The company’s ongoing expansion efforts reflect a strong positioning within the AI cloud space, building on its established capabilities in Chile and elsewhere.

As Bitdeer continues to navigate its dual focus on Bitcoin mining and AI, the evolving landscape presents numerous opportunities for growth, particularly through long-duration contracts that cater to the burgeoning demand for AI computational power.