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DMG Blockchain Solutions Inc. Announces MOU to Purchase 10-Megawatt Data Center Infrastructure

Feb 25, 2025 - financialpost.com
DMG Blockchain Solutions Inc. has signed a memorandum of understanding (MOU) to purchase a 10-megawatt data center infrastructure that meets Sensitive Compartmented Information Facility (SCIF) specifications, which are typically military requirements. This acquisition is intended to support DMG's deployment of Generative Artificial Intelligence (Gen AI) computation facilities. The company plans to finalize a definitive agreement within 90 days, during which it will conduct due diligence. The data center, which is modular and can be partitioned, will not initially include power distribution, battery storage, or computing systems, which DMG will need to install to generate revenue from off-take agreements. These agreements may involve federal agencies or other entities requiring SCIF specifications.

DMG's CEO, Sheldon Bennett, emphasized that this MOU significantly advances the company's entry into the Gen AI sector, potentially shortening deployment time by a year and enhancing credibility to secure off-take agreements. The company aims to leverage the military-grade nature of the infrastructure to attract premium revenue opportunities. DMG is focused on securing off-take agreements and intends to deploy the data center at multiple locations. The company will pay an upfront amount of US$5 million for the data center, with the remaining balance contingent on future revenue from Gen AI computing agreements.

Key takeaways:

  • DMG Blockchain Solutions Inc. has signed a memorandum of understanding (MOU) to purchase a 10-megawatt data center infrastructure for Generative Artificial Intelligence (Gen AI) computation facilities.
  • The data center will meet Sensitive Compartmented Information Facility (SCIF) specifications, which is generally a military requirement.
  • DMG plans to pay US$5 million upfront for the data center, with the balance based on future revenue from Gen AI computing off-take agreements.
  • The infrastructure will be deployed at one or more locations and will require additional installations for computing, networking, and storage systems to realize revenue.
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