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Arkon Energy raises $110 million to boost its mining operations

TL;DR

  • Arkon Energy has announced a private funding round where it raised $110 million.
  • Strategic growth and expansion plans.

Arkon Energy, a burgeoning player in the data center infrastructure sector, has successfully closed a private funding round, securing a substantial $110 million to propel its ambitious expansion plans. Led by Bluesky Capital Management and featuring participation from Kestrel 0x1 and Nural Capital, this funding injection positions Arkon for strategic growth in the global data center market.

Arkon Energy set to expand its operations with new funding

Established in 2021, Arkon Energy initiated operations with a modest 5-megawatt facility in Australia. Since its inception, the company has experienced remarkable growth, now boasting over 130 megawatts of capacity and extending its reach into key regions such as the United States and Europe. The unique appeal of Arkon’s data center sites lies in their ability to cater to both bitcoin miners and clients engaged in high-power computing demands, particularly those involved in AI and machine learning applications.

A significant allocation of the funding, approximately $80 million, is earmarked for acquiring an additional 200-megawatt capacity. This expansion will be realized through the establishment of new data centers in strategic locations, including Ohio, North Carolina, and Texas. This move aligns with Arkon’s ambitious strategy to increase its total megawatts by an impressive 130% by mid-2024. This expansion complements Arkon’s earlier acquisition of a 100-megawatt facility in Ohio in June.

The United States emerges as a critical market for Arkon Energy. CEO Josh Payne cites several factors contributing to the attractiveness of the U.S. market, including domestic customer demand, a mature and robust energy industry, flexible and deregulated markets, political stability, and appeal to institutional investors. Of particular note is the abundance of stranded, underutilized power generation assets in the U.S., many of which are connected to some of the world’s lowest-cost and renewable electricity sources.

Strategic growth and expansion plans

Arkons positions itself as a landlord in the data center space, emphasizing ownership of underlying infrastructure assets. The U.S. data center portfolio primarily serves institutional-grade bitcoin mining companies. Arkon’s distinctive business model revolves around strategically acquiring distressed data center assets on a global scale. This approach positions the company to meet the escalating demand for various types of data center capacity, reflecting the unprecedented growth in this sector.

CEO Josh Payne emphasizes the extraordinary demand for data center capacity globally, particularly in the U.S., fueled by energy-intensive platforms that necessitate professionally managed and operated electrical infrastructure. The company’s focus on distressed asset acquisition aligns with the monumental growth and demand in the data center industry. A noteworthy portion of the funding, amounting to $30 million, is allocated for the development of an artificial intelligence cloud service project at Arkon’s data center in Norway.

This initiative aims to address the rising demand for generative AI and large language model training markets. Payne underscores the current undersupply of specialized physical infrastructure to power the computers and servers behind these AI applications, positioning Arkon to fill this crucial gap. Arkon Energy’s recent funding round underscores its strategic positioning in the dynamic and rapidly expanding data center industry. With a focus on distressed asset acquisition, substantial expansion in the U.S., and addressing the burgeoning demand for AI infrastructure, Arkon is poised to play a pivotal role in shaping the future landscape of data center services on a global scale.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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