HIVE Blockchain Acquires Kolos, to Build 1GW Data Center
- Mar 29, 2018
HIVE Blockchain Technologies, a Canadian cryptocurrency mining company, has entered an agreement with Kolos Norway AS, a data center operator, to acquire all issued and outstanding shares of Kolos. The transaction will be completed through the acquisition of another Norwegian entity for a total consideration of $9.9 million, 4,750,000 common shares and 1,250,000 warrants.
HIVE eyed a 158-acre property owned by Kolos, an opportunity for the mining company to expand its operations. Located in Ballangen, Norway, approximately 140 miles north of the Arctic Circle, the site will house a hyperscale data center, one which has the potential to become the largest in the world. The surrounding infrastructure supports access to more than one gigawatt of hydroelectric power, as well as high speed fiber.
The facility will be fully sustainable, using 100 percent green, renewable energy. The Nordic climate will be used to cool the hyperscale facility, to be constructed in multiple phases over several years.
Primed for growth
Kolos initially announced the project in September of last year and planned for a first phase to be completed this year. Construction has yet to begin, but all preliminary permits have been approved by the local municipality. The four-story structure will be integrated with and take advantage of the surrounding environment. A natural corridor bordered by mountainous terrain and water provides a physical security barrier, as well as cooling.
HIVE and its strategic partner, Genesis Mining, which owns a 25.6 percent stake in HIVE, are planning an initial delivery of 30 megawatts, while a year from now, approximately 120 megawatts will be available, already putting the Kolos data center at the top of the global list in terms of critical IT power.
“Kolos will be a flagship data center project for HIVE for years to come and has the potential to expand to more than one gigawatt, or 1,000 megawatts, of green hydroelectricity consumption dedicated to blockchain infrastructure. For context, our mining operations in Iceland and Sweden will collectively represent 44.2 megawatts of consumption, also from green sources. (…) We continue to explore non-dilutive financing alternatives to commence the build-out as soon as possible,” said Harry Pokrandt, CEO & director of HIVE, in a prepared statement.
Image courtesy of HIVE Blockchain Technologies