DMG Blockchain Signs 50 MW AI Data Center Colocation LOI at Christina Lake
June 1, 2026
DMG Blockchain Signs 50 MW AI Data Center Colocation LOI at Christina Lake
DMG Blockchain Solutions, a Canadian bitcoin mining company listed on the TSX Venture Exchange under the ticker DMGI, is making a strategic pivot toward artificial intelligence infrastructure. The company has signed a non-binding letter of intent to provide 50 megawatts of critical IT load to a single tenant for AI data center colocation at its Christina Lake facility in British Columbia. This move underscores a broader industry trend where cryptocurrency miners are repurposing their power assets to meet surging demand for AI compute capacity.
Under the proposed agreement, the unnamed tenant—currently protected by a non-disclosure agreement—is expected to provide an investment-grade credit backstop as both parties work toward a definitive contract. DMG cautioned, however, that there is no assurance a final deal will be reached. If completed, the initial term would span 12 years, with renewal rights for up to three additional five-year periods, signaling a long-term commitment to converting the site from bitcoin mining to AI colocation services.
DMG plans to deliver the colocation capacity in phases, with the first phase targeted for completion by December 31, 2026. The LOI includes monthly recurring charges and annual escalations that the company said reflect current market rates for AI colocation. DMG also indicated that debt would be the primary financing method for the capital required if a definitive agreement is finalized. During the negotiation period, the Christina Lake facility will continue to operate primarily as a bitcoin mining site, but a signed agreement would shift its focus toward higher-margin AI infrastructure.
The 50-megawatt tenant would provide DMG with a clearer commercial path for Christina Lake, as AI demand pulls more miners toward data center colocation. The LOI also grants the tenant a 12-month right of first refusal if DMG intends to accept an offer from another third party. Outside of that right, along with the NDA and non-circumvent terms, the LOI remains non-binding. DMG Blockchain Solutions Inc. was trading at C$0.375 per share at the time of reporting.
Source: finance.yahoo
