Arkon Energy secures $110M funding to expand bitcoin mining operations in the US and introduce AI cloud service in Norway.

ByYasmeeta Oon

Dec 26, 2023

Arkon Energy, a prominent data center infrastructure firm, recently completed a $110 million private funding round aimed at expanding its global operations. This news was exclusively reported by TechCrunch and marks a significant step in the company’s growth trajectory. The funding round was led by Bluesky Capital Management, with significant contributions from Kestrel 0x1 and Nural Capital, highlighting the confidence and interest from various investment firms in Arkon’s business model and future plans.

Founded in 2021, Arkon began its journey with a modest 5-megawatt data center in Australia. In a relatively short period, the company has experienced rapid growth, now boasting over 130 megawatts of capacity. This expansion isn’t just in size but also geographic reach, with Arkon extending its operations into key markets such as the U.S. and Europe. These regions are particularly appealing for the company’s target clientele, which includes bitcoin miners and AI/machine learning operations, both of which require intensive power resources.

The investment will predominantly finance Arkon’s ambitious expansion plan. Around $80 million is earmarked for increasing the company’s capacity by an additional 200 megawatts. This expansion will include new data centers in strategic locations across Ohio, North Carolina, and Texas, aiming to amplify the company’s total capacity by 130% by mid-2024. This significant increase reflects Arkon’s proactive approach to meeting the burgeoning demand for data processing power, particularly in the U.S. market, which is attractive due to its vast customer base, mature energy sector, and political stability.

Arkon’s strategic vision extends beyond simple expansion; it involves a keen focus on acquiring distressed data center assets globally, positioning the company as a key infrastructure provider in the field. This approach not only facilitates growth but also establishes Arkon as a significant player in the institutional-grade bitcoin mining space, acting essentially as a landlord for the infrastructure assets.

The remaining $30 million of the funding is allocated towards a pioneering project: developing an artificial intelligence cloud service at Arkon’s Norway-based data center. This initiative is a direct response to the explosive growth and demand in the generative AI and large language model training markets. By investing in these specialized services, Arkon aims to address the critical gap in the physical infrastructure required to power the next generation of AI applications.

Arkon’s strategy and recent financial boost signify not just an expansion in physical capacity but also an adaptation to the evolving technological landscape. With the rapid rise of AI applications and the increasing mainstream adoption of bitcoin, specialized data centers like Arkon’s are set to become even more pivotal. The company is positioning itself at the forefront of this wave, ready to meet the ever-increasing demands of the digital age.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.