Gryphon Digital Mining, a leader in Bitcoin mining and AI data center development, has announced its acquisition of a prime industrial site in Southern Alberta. This acquisition marks a significant step toward building a high-performance computing (HPC) and AI-powered data center directly fueled by natural gas.
Acquisition Details: Site and Power Capacity
Gryphon Digital Mining has secured an 850-acre industrial property in Southern Alberta, with access to a natural gas supply from Captus Energy. The site initially offers a generation capacity of 100MW, with the potential for expansion up to 4GW, making it an ideal location for the company’s growth in AI and HPC infrastructure. By the end of 2026, the facility is expected to generate 130MW of power.
The acquisition price was approximately CAD $27 million (around USD $18.7 million), which includes CAD $3 million (USD $2 million) in restricted shares offered to the incoming management team of Captus Energy. The deal is expected to close by April 2025.
Why Southern Alberta? Strategic Location for AI Data Centers
The site in Southern Alberta offers several key advantages, including access to both a grid connection and abundant non-potable water resources. It also boasts dual high-speed fiber connections, essential for ensuring reliable and fast data transmission. These attributes, combined with the site’s natural gas access and carbon sequestration capabilities, position it as one of the few North American locations capable of supporting large-scale AI computing operations.
Steve Gutternman, CEO of Gryphon Digital Mining, emphasized that this acquisition provides the company with a transformative opportunity to tap into the booming AI compute market. The location’s unique combination of resources makes it an attractive option for companies looking to scale their AI operations sustainably.
Scalability Potential and Projected Revenue
Gryphon estimates that the site could generate over $5 billion annually at full capacity, assuming $1.5 million in revenue per megawatt. This revenue projection underscores the enormous potential of the site as demand for AI computing continues to surge across industries. With the ability to scale to 4GW, this site will be a key player in meeting the growing computational demands of AI and high-performance computing.
The Role of Natural Gas in AI and Data Center Operations
Natural gas is increasingly being seen as a reliable power source for data centers, especially those engaged in energy-intensive tasks like Bitcoin mining and AI operations. Gryphon’s decision to leverage natural gas for its data center aligns with a broader trend in the industry, where companies like Serverfarm and ExxonMobil are exploring similar strategies to power data centers using natural gas.
Gryphon’s AI data center will be powered by this clean-burning energy source, which will help ensure that the facility remains competitive in terms of operational efficiency. Furthermore, Gryphon’s commitment to carbon capture and sequestration ensures that their operations minimize environmental impact, further enhancing the site’s appeal.
Strategic Expansion in AI/HPC Infrastructure
This acquisition represents a bold move by Gryphon as it expands into the rapidly growing AI and HPC infrastructure sector. Founded in 2021, Gryphon Digital Mining already operates several Bitcoin mining operations across the United States. However, this new venture into AI data centers marks a major strategic shift for the company. The investment in Southern Alberta’s industrial site is poised to solidify Gryphon’s position as a leader in both AI and energy-efficient data center solutions.
FAQ Section
Q1: What is Gryphon Digital Mining’s plan for the newly acquired site in Alberta?
Gryphon plans to develop a large-scale AI and high-performance computing data center powered by natural gas. The site will also feature carbon capture and sequestration capabilities.
Q2: How much power capacity does the Alberta site have?
The site has an initial generation capacity of 100MW, with the potential to scale up to 4GW.
Q3: What are the main advantages of the Southern Alberta location for AI data centers?
The site offers key resources including access to a grid connection, non-potable water, dual fiber connections, and a reliable natural gas supply, which are critical for large-scale AI operations.
Q4: What role does natural gas play in Gryphon’s data center plans?
Natural gas will power the data center efficiently, supporting high-performance computing tasks while minimizing environmental impact through carbon sequestration efforts.
Q5: What are the projected revenues for the Alberta site at full capacity?
At full capacity, the site could generate over $5 billion in annual revenue, based on the expected revenue per megawatt.
