A 20-year agreement for 191 MW capacity AI data center was inked by Riot Platforms, worth $9.1 billion. Anthropic was reportedly the tenant, according to Bloomberg. Riot is still using its Bi
The transition of Riot Platforms from Bitcoin mining will be quickened following its 20-year deal for 191 megawatts of power in its Rockdale campus in Texas. Riot Platforms anticipates that the deal will yield about $9.1 billion before June 2048, and two five-year extension deals would bring the total potential earnings to $16.1 billion.
According to the firm, the delivery of the power will occur in phases such that it delivers 96 megawatts by December 2027 before completing the remaining 95 megawatts by June 2028. Riot Platforms referred to the client as an industry-leading frontier AI lab, while Bloomberg named the tenant Anthropic based on people informed of the deal. However, there was no public confirmation from either side of Anthropic’s identity.
Riot’s Rockdale campus currently holds 700 megawatts of built-out and powered power capacity with fiber and electrical infrastructure. Riot has also entered into a deal with AMD, whose power usage increased to 50 megawatts after choosing another option. The deal gives Riot 241 megawatts of IT capacity leased with signed contracts in Rockdale. The combined income from the deal with AMD and the announced deal is expected to bring about $9.8 billion.
Riot recorded $23.2 million in second-quarter data center revenue as its AMD buildout started contributing to its operations. This move comes amid increasing demand from tech companies looking to get power capacity to perform their AI calculations. Previously, activist shareholder Starboard Value asked Riot to pursue this route, which it could capitalize on using its power capacity in the US.
Despite that, Riot continues to mine Bitcoin and directs its resources toward AI development. In Q2 of this year, the firm mined 1,587 BTC, compared to 1,426 BTC in the same period last year, while the company’s mining revenues fell 15% due to lower Bitcoin prices and increased competition on the network. As of June, Riot had a total of 11,380 BTC that amounted to $666 million and $548.9 million in cash. Riot utilizes the proceeds from the Bitcoin sales for further AI growth. This 191 MW project is estimated to cost between $2.1 billion and $2.3 billion, and Morgan Stanley will invest $573 million.
Highlighted Crypto News:
Ethereum’s New Roadmap Targets Privacy, Quantum Resistance and Scaling
