VivoPower PLC ( NASDAQ:VIVO , FRA:51J ) is advancing plans to transform its Mo i Rana site in Norway into an AI data center, targeting an initial 40 megawatt phase as demand for powered land in the Nordic region strengthens.
The company is working to finalize definitive terms with a prospective AI compute tenant after receiving better offers than its previously preferred candidate, reflecting improving market conditions for powered data center sites.
VivoPower estimates the first phase will require approximately US$411 million in capital expenditure and is progressing discussions with prospective financiers.
It is targeting a funding structure comprising 70% to 75% project debt and 25% to 30% equity, with potential co-development partners providing equity in exchange for a stake in the project. VivoPower would contribute its operational powered land site and is seeking to retain a majority interest.
Potential tenant deposits or prepayments could also help fund construction.
The update accompanied fiscal 2026 results showing group revenue of US$2.6 million, including US$2.5 million from the data center segment during the 50 days following consolidation of the Mo i Rana operations.
The site currently hosts bitcoin mining activities, generating US$40,000 in operating profit during the reporting period. VivoPower said the short-period results were affected by acquisition costs, maintenance work and downtime, as well as lower bitcoin prices.
Since year-end, improved bitcoin prices and better-than-expected demand response revenues have driven results materially above the full-year figures.
VivoPower's net assets increased to US$37 million at June 30, 2026, from a restated US$17.2 million a year earlier, mainly reflecting share issuances.
The company also highlighted progress in its electric vehicle business, Tembo, which generated US$90,000 in fiscal 2026 revenue and has since secured bookings and purchase orders exceeding that full-year figure.
Higher diesel prices in key markets have supported demand for Tembo's vehicle conversion kits and vehicles, with the business targeting EBITDA profitability in fiscal 2027.
VivoPower, however, has designated Tembo and its Caret business as non-core as it focuses on developing its AI infrastructure platform.
Tembo is pursuing a proposed business combination with Cactus Acquisition Corp. 1 Limited, which would see the combined business seek a Nasdaq listing. VivoPower expects to retain a minority shareholding.
Cactus shareholders approved an extension on October 27, giving the company until November 2, 2027, to complete the transaction.
