Bit Digital, a prominent US-based data center developer and cryptocurrency firm, has made a significant move in the data center industry by acquiring a new site in Montreal, Canada. The company plans to develop this site into a 5MW data center, aligning with its broader strategy to expand its high-performance computing (HPC) data center footprint. This strategic acquisition underscores Bit Digital’s commitment to bolstering its data infrastructure to meet the growing demand for advanced computing solutions.
Acquisition of Montreal Site for CA$33.5 Million
On December 27, 2024, Bit Digital closed the acquisition of the site known as MTL2 for CA$33.5 million (approximately US$23.3 million). The transaction does not include additional fees, marking a significant investment in the company’s expansion strategy. The company used cash on hand for the acquisition but plans to secure mortgage financing for the project. This financing will cover both the acquisition cost and subsequent infrastructure expenditures.
The MTL2 site is located in Montreal, a key location for data center development due to its favorable climate and access to reliable, low-cost hydroelectric power. The acquisition further emphasizes Bit Digital’s ongoing push to increase its data center capacity across North America and beyond.
Plans for a Tier III Data Center
Bit Digital’s plans for the site include developing a 5MW data center that meets Tier III standards, a classification known for high reliability and operational efficiency. The company intends to invest CA$27.6 million (about US$19.3 million) to retrofit the facility into a state-of-the-art data center. The expected completion date for commercial operations is May 2025, signaling a quick turnaround for the project.
The data center will incorporate advanced cooling solutions and other high-performance technologies to cater to the needs of modern, resource-intensive applications, including cryptocurrency mining, artificial intelligence (AI), and machine learning workloads. The site’s development will serve as a model for Bit Digital’s growing portfolio of HPC facilities.
Sustainable Power and Cooling Solutions
One of the key features of the MTL2 data center will be its sustainable and energy-efficient design. Bit Digital has chosen to power the facility entirely with hydroelectric power sourced from Hydro-Québec, a local utility provider. Hydroelectric power is a key element of the company’s sustainability strategy, ensuring that the data center will run on a clean, renewable energy source.
In addition to sustainable power, the site will feature direct-to-chip liquid cooling technology. This cutting-edge technology supports high-density computing workloads, with the data center expected to achieve 150kW per rack. Liquid cooling is essential for handling the heat generated by modern processors, especially those used in AI and cryptocurrency mining operations, ensuring both efficiency and longevity of the hardware.
To further enhance the facility’s environmental sustainability, Bit Digital will collaborate with third-party experts to implement a heat rejection loop at the site. This loop will help to manage excess heat and improve the overall energy efficiency of the data center, aligning with best practices for sustainable data center operations.
Expansion Plans and Strategic Vision
The acquisition of the Montreal site is part of Bit Digital’s broader strategy to expand its HPC data center footprint to a total of 32MW by the end of 2025. This ambitious expansion plan reflects the company’s commitment to meeting the growing demand for high-performance computing services, particularly in the realms of cryptocurrency mining, AI, and other compute-intensive applications.
The Montreal project follows a series of strategic acquisitions by Bit Digital, including the recent purchase of Enovum, a Canadian data center operator, for CA$62.8 million (US$46 million). This acquisition allowed Bit Digital to expand its footprint in the colocation space and diversify its revenue streams beyond cryptocurrency mining.
Strategic Partnerships and Collaborations
As part of its growth in the high-performance computing sector, Bit Digital has also secured a partnership with Boosteroid, a gaming company. This deal, announced in November 2024, involves Bit Digital providing 300 GPUs for Boosteroid’s HPC infrastructure. The collaboration underscores Bit Digital’s expanding role in the broader HPC ecosystem, catering to industries such as gaming, AI, and cloud computing.
Frequently Asked Questions
What is the MTL2 site, and where is it located?
The MTL2 site is a 160,000 sq ft (14,864 sqm) facility located in Montreal, Canada. Previously used as an encapsulation manufacturing facility, it will be retrofitted into a high-performance computing data center by Bit Digital.
How much did Bit Digital pay for the MTL2 site?
Bit Digital acquired the MTL2 site for CA$33.5 million (approximately US$23.3 million). The transaction closed on December 27, 2024, excluding additional fees.
What technologies will Bit Digital use in the MTL2 data center?
Bit Digital will employ direct-to-chip liquid cooling technology to support high-density computing workloads. The data center will also be powered entirely by hydroelectric power from Hydro-Québec.
When will the MTL2 data center begin operations?
Bit Digital plans for the MTL2 data center to begin commercial operations in May 2025.
What is Bit Digital’s expansion strategy?
Bit Digital aims to expand its high-performance computing (HPC) data center capacity to 32MW by the end of 2025, with additional acquisitions and strategic partnerships.
