New Development for High-Performance Computing Facility
Digital Power Optimization (DPO), a US-based cryptocurrency and data center developer, has secured the necessary land and power supply for the construction of a 20MW high-performance computing (HPC) facility in Wisconsin Rapids, Wisconsin. This $200 million project aims to meet growing demand for computational power, with a projected energization date in 2026.
Collaboration with Consolidated Water Power Company
In partnership with Consolidated Water Power Company (CWPCo), DPO is positioning the data center to leverage clean, renewable energy. CWPCo, a subsidiary of Swedish manufacturer Billerud, operates a 32MW network of hydroelectric power assets. This collaboration ensures a sustainable power supply and interconnection rights to an existing, energized substation, which supports a streamlined development timeline for DPO.
Key Details of the Project
The data center will be built on a long-term land lease agreement of up to fifty years. DPO’s CEO, Andrew Webber, emphasized that speed-to-energization is critical in today’s market. This partnership with CWPCo enables DPO to design facilities with actionable milestones, allowing them to bring projects online years ahead of traditional hyperscale data centers.
Planning and Construction Phases
DPO is actively working with the City of Wisconsin Rapids and state agencies to finalize construction plans and obtain the necessary building permits. These steps are crucial for moving from the planning phase to vertical construction, with groundbreaking expected once approvals are secured.
Engineering Support and Funding
To ensure the successful execution of the project, DPO has engaged Stantec for consulting and engineering support. Additionally, Salutem Capital, a New York-based family office, led the funding for the pre-development phase. DPO’s innovative approach, which often incorporates cryptomining facilities behind-the-meter at renewable energy sites, allows the company to utilize surplus energy while maintaining flexibility during peak demand periods.
Past Partnerships and Growth Strategy
This project builds on DPO’s earlier ventures, including a partnership with Schneider Electric in April 2024 to design modular AI data centers behind-the-meter at multiple Texas wind farms. In 2022, DPO raised $2.5 million in a Series A funding round led by Bitcoin firm NYDIG, enabling further expansion of its data center portfolio.
FAQ Section
What is a high-performance computing (HPC) facility?
HPC facilities are data centers designed to support computationally intensive tasks such as cryptomining, artificial intelligence, and scientific simulations. They require significant processing power and specialized infrastructure to manage the associated workloads.
How does DPO’s model benefit from renewable energy?
DPO’s approach integrates data centers directly with renewable energy sources, often utilizing spare capacity from wind or hydroelectric power. This reduces operational costs and minimizes environmental impact by relying on sustainable energy.
What role does CWPCo play in the Wisconsin Rapids project?
CWPCo, a regulated utility owned by Billerud, is supplying the data center with hydroelectric power. Their extensive distribution network and interconnection rights enable DPO to access a reliable and clean energy source for the project.
How does DPO’s business model differ from traditional data centers?
DPO’s model focuses on colocating data centers at renewable energy sites to optimize energy usage, turning down operations during peak demand periods. This flexibility allows them to operate more sustainably compared to traditional data centers that rely on grid power.
When will the Wisconsin Rapids data center be operational?
The project is expected to be fully energized and operational by 2026, with DPO working through final planning and permitting stages before construction begins.
