DMG Blockchain Solutions (DMGI.V) signed a letter of intent (LOI) to offer 50 megawatts critical IT load of AI data center colocation services to a single tenant at its Christina Lake, British Columbia facility, the vertically integrated digital asset and data center technology company said on Monday.
The tenant, under a non-disclosure agreement at this time, will be providing DMG with an investment grade backstop to review, it said. DMG and the tenant are working towards a definitive agreement with an initial term of 12 years with the right to renew it for up to three periods of five years, it added.
Pursuant to the LOI, the company will deliver colocation capacity to the tenant in phases with the goal of delivering the first phase by Dec. 31. The LOI specifies monthly recurring charges and annual escalations that reflect current market rates for AI colocation, it said.
Shares of the company closed down 1.6% to $0.315 on Friday on the TSX Venture Exchange.