Blockchain firm Digihost is setting up a dedicated unit for non-crypto data center hosting.
Following a spate of other crypto firms pivoting to cater to AI and colocation, Digihost this month launched a new unit, US Data Centers, Inc.
US Data Centers, a wholly-owned subsidiary of Digihost, will be dedicated to the development of high-performance computing and artificial intelligence-focused data centers.
The new unit’s first project is converting Digihost’s existing site in Columbiana, Alabama, into a 55MW colocation facility.
“The rapid growth of AI applications requires robust, high-performance infrastructure, and this strategic investment will help us meet that demand with a Tier III-certified, AI-optimized facility designed for scalability and efficiency,” said Michel Amar, CEO of Digihost.
The first $176 million phase, set to go live in Q2 2026, will offer 22MW of HPC capacity. The second phase will add a further 33MW around Q1 2027, with a further $264 million investment.
The required $440 million will be financed primarily through debt by leveraging anticipated predictable future revenues.
Digihost develops Bitcoin mining centers behind the meter at energy plants. The company has an operating capacity of around 100MW across three power plants across New York and Alabama, with more in development. Its website lists plans to develop a 200MW site in North Carolina.
Digihost acquired the Alabama site in June 2022 from Grede II, LLC for $2.75 million. The site came with 160,000 square feet of office and industrial warehouse space.
The company has previously announced a partnership with nano nuclear reactor maker, Nano Nuclear, to deploy its shipping container-sized reactors Digihost’s 60MW natural gas power plant in North Tonawanda, New York. The deployment is due in 2031.
On its website, US DC claims to have four US sites available for redevelopment totaling 300MW.
Amid increased demand for capacity and limited supply, crypto-focused companies with ample amounts of cheap power are pivoting to serve AI cloud firms. The likes of Hive Digital Technologies, Northern Data, Applied Digital, Iris Energy, Mawson Infrastructure, Crusoe, and others are but a small number of those that have made the shift.
