Token Cat Limited (Nasdaq: TC) entered into a master service agreement with Better Now New York Inc. to develop a 30‑megawatt artificial‑intelligence data center in the United States. The partnership marks the company’s first major foray into the U.S. data‑center market and signals a strategic shift from its traditional automotive‑marketplace focus.
Under the deal, Token Cat will handle project planning, secure funding, and provide construction support, while Better Now will supply local resources for energy coordination, construction implementation, and operational services. The project will launch with approximately 12 MW of U.S. power capacity, creating a foundation for phased expansion to the full 30 MW target as the facility scales.
Token Cat’s move comes amid a period of financial strain. The company reported a trailing‑12‑month loss of $20.8 million and a fiscal‑year 2024 loss of $25.8 million, while revenue fell 69.71% to 49.18 million CNY in 2024. A Nasdaq minimum bid price notice issued in March 2025 underscored the company’s compliance challenges, and its shares have declined 35.31% year‑to‑date as of December 16, 2025. The AI data‑center venture therefore represents a high‑stakes attempt to diversify revenue streams and improve long‑term profitability.
CEO Guangsheng Liu said, “Our collaboration with Better Now represents meaningful progress in the Company’s overseas infrastructure initiatives. Leveraging our existing power resources, we intend to steadily advance the development of a 30‑MW‑scale AI data center project while exploring long‑term growth opportunities in a disciplined and compliant manner.” The statement highlights the company’s intent to use its power assets to support a capital‑intensive, high‑growth sector while maintaining regulatory compliance.
The U.S. AI data‑center market is expanding rapidly, driven by the computational demands of large‑language models and other AI workloads. Analysts project tens of billions of dollars in investment over the next decade, with power and cooling infrastructure as critical bottlenecks. Token Cat’s partnership with a local specialist positions it to tap this demand, but the company will face intense competition from established data‑center operators and must manage significant upfront capital expenditures.
The agreement offers both opportunity and risk. If Token Cat can execute the phased build and secure long‑term client contracts, the 30‑MW facility could generate substantial recurring revenue and help offset current losses. However, the project’s capital intensity, regulatory scrutiny, and the need for sustained demand for AI workloads mean that success will hinge on disciplined execution and the ability to attract high‑margin customers.
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