Arkon Energy Secures $110 Million Funding for Expansion and AI Cloud Service Development
The remaining $30 million will fund a groundbreaking project - the development of an AI cloud service in Norway.
Arkon Energy, a leading data center infrastructure company, announced the successful closure of a $110 million private funding round aimed at bolstering its global expansion initiatives and the development of an innovative artificial intelligence (AI) cloud service, according to TechCrunch report.
The funding round, spearheaded by Bluesky Capital Management, witnessed substantial participation from notable investors including Kestrel 0x1 and Nural Capital, underscoring confidence in Arkon's strategic vision and growth potential.
Since its inception in 2021 with a 5-megawatt site in Australia, Arkon Energy has rapidly expanded its operational capacity, now boasting over 130 megawatts across diverse locations worldwide, spanning the U.S. and Europe.
CEO Josh Payne highlighted the multi-faceted appeal of Arkon's sites, catering to both bitcoin mining entities and AI/machine learning clients due to their robust power computing capabilities. A single megawatt, according to Nuclear Regulatory Commission estimates, can power anywhere from 400 to 900 homes annually.
Approximately $80 million from the raised capital is allocated towards acquiring an additional 200-megawatt capacity across new data centers strategically positioned in Ohio, North Carolina, and Texas. Arkon aims to augment its total megawatt capacity by an impressive 130% by mid-2024, in conjunction with the recent acquisition of a 100-megawatt facility in Ohio earlier this year.
Arkon's U.S. data centers primarily cater to institutional-grade bitcoin mining firms, operating as the infrastructure owner.
The remaining $30 million will fund a groundbreaking project - the development of an AI cloud service in Norway. This ambitious initiative intends to address the burgeoning demand in generative AI and large language model training markets by providing specialized physical infrastructure vital to the AI sector's advancement.
Payne expressed unwavering confidence in the surging demand for AI applications and potential institutional adoption of bitcoin. He believes that these developments position data centers like Arkon's for remarkable growth and scalability.
Arkon Energy's recent funding round signifies a strategic step forward in meeting the escalating demand for data center capacity and specialized infrastructure vital for emerging AI technologies, solidifying its position as an industry frontrunner amid the evolving technological landscape.
