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Northern Data set to issue $25m in shares to buy 6-hall HPC data centre

Company said the electricity for the new site is 100% sourced from renewable energy, generated by hydropower plants in the region.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

January 07, 2021 | 10:57 AM GMT

Northern Data AG (XETRA: NB2) has acquired a data centre facility in in the Northern Swedish city of Boden to meet customer demand. 

The site currently consists of six data centre halls on an area of 2.5 hectares and will now be further expanded by Northern Data following the acquisition.

The acquisition of the data centre facility, including two operating companies and part of the team, is, however, subject to, among others, a successful due diligence process and will take place through the issuance of EUR 21 million (US$25.3 million) in shares, subject to a full lock-up period of two years, and a cash component of EUR 4 million ($4.82 million).

The location of the building, which boasts a PUE value (power usage effectiveness) of 1.07, is achieved  in Boden where temperatures are usually low, make it possible for the usage of passive energy-saving cooling of the HPC hardware.

The region in Northern Sweden is characterised by high connectivity and cheap regional surplus electricity from renewable energy sources. 

The company said the electricity for the new site is 100% sourced from renewable energy, generated by hydropower plants in the region. 

The local hydropower plants have a capacity of about 4.5 gigawatts (GW), producing about 14 terawatt hours (TWh) per year.

Northern Data CEO Aroosh Thillainathan, said: “Due to the high demand for HPC capacity, we are constantly reviewing options to quickly secure additional sites through acquisitions in addition to building our own data centres. This allows us to further accelerate our growth. 

“In view of this strategy, the new site in Northern Sweden is not only a real stroke of luck but also a significant expansion step for our company. Not only can we use it instantly, but we can also expand and develop it quite considerably, which we will do immediately. 

“Our new site offers important advantages, such as lowest energy costs and ultra-efficiency, which will make it an important part of the Northern Data group going forward.“

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João Marques Lima

Founder and Editor, The Tech Capital

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