VivoPower closes deal for AI-ready data center in Norway – Vivopower International (NASDAQ:VVPR)

VivoPower International PLC (NASDAQ:VVPR) announced on Tuesday that it has signed an exclusive agreement to acquire an operational hydro-powered data center in Norway, positioning the asset as a cornerstone of its AI-focused digital strategy.

The company stated that the facility already operates with more than 40 megawatts of energy capacity and relies solely on 100% renewable hydropower.

Price and profitability target

VivoPower estimated the implied valuation at approximately $40 million and stated that the purchase could add approximately $10 million in pro forma EBITDA, positioning the deal as highly profitable with an indicative four times pro forma EBITDA.

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Why this site is suitable for AI

The company pointed to already energized hydropower that costs less than $0.035 per kilowatt hour, as well as at the Scandinavian location, which supports efficient operations. VivoPower also mentioned a 50-year land lease and said regulators could consider another 40 megawatts for approval in 2026.

Financing and timing

VivoPower expects to finance the transaction through deferred supplier financing and a convertible preferred equity tranche. The preferred shares have a conversion price of $6.80 and an annual 6% in-kind coupon.

The issuance requires shareholder approval at a general meeting scheduled for January 2026. The company expects the transaction to close in January 2026.

Under the banner of Caret Digital, VivoPower plans to transition the site from blockchain-compute co-hosting to a Sovereign AI Hub, designed for large language model training and inference, for companies seeking carbon-neutral computing.

VivoPower has also been exploring other ways to fund its AI push, including the steps outlined in its solar asset assessment.

VVPR price promotion: Shares of Vivopower International were down 9.96% to $2.39 at the time of publication on Tuesday, according to data from Benzinga Pro.

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