Arkon Energy Secures $110 Million Funding for Global Data Center Expansion
Arkon Energy, a company specializing in data center infrastructure, concluded a $110 million private funding round to expand its operations. The company’s CEO, Josh Payne, revealed this exclusively to TechCrunch.
The funding was spearheaded by Bluesky Capital Management and saw involvement from Kestrel 0x1 and Nural Capital.
Established in 2021, the company initially operated a 5-megawatt site in Australia. It has since burgeoned to over 130 megawatts and expanded into various countries such as the U.S. and Europe.
Payne highlighted the appeal of these sites to both bitcoin miners and clients involved in AI or machine learning, with substantial power computing needs. For reference, 1 megawatt can power anywhere between 400 to 900 homes annually, as per the Nuclear Regulatory Commission.
Roughly $80 million of the funding will be allocated to acquire an additional 200-megawatt capacity in new data centers across Ohio, North Carolina, and Texas. This expansion aims to boost the company’s total megawatt capacity by 130% by mid-2024, supplementing Arkon’s existing 100-megawatt facility in Ohio purchased in June.
Payne emphasized the attractiveness of the U.S. market due to significant domestic customer demand, a well-established energy industry, regulatory stability, and institutional investor appeal. He described Arkon as essentially a landlord owning the foundational infrastructure assets within its U.S. data center portfolio, largely occupied by institutional-grade bitcoin mining companies.
Arkon’s business model centers on acquiring distressed data center assets globally. Payne noted an unprecedented demand for various types of data center capacity, especially in the U.S., driven by energy-intensive platforms requiring professionally managed electrical infrastructure.
The remaining $30 million will fund the development of an artificial intelligence cloud service project at Arkon’s data center in Norway. This initiative aims to cater to generative AI and large language model training markets, addressing the current scarcity of specialized physical infrastructure supporting these technologies.
Payne observed a remarkable surge in AI applications and potential growth in mainstream institutional markets for bitcoin, making specialized data centers like Arkon’s crucial for scaling exponentially in the future.
