VivoPower International PLC announced a heads‑of‑agreement to acquire a 40‑MW data‑center facility in Norway that is already powered by 100 % renewable hydroelectric energy. The deal, valued at roughly $40 million, will close in January 2026 and is financed through a combination of deferred vendor finance and a convertible preference share tranche with a $6.80 conversion price.
The acquisition is a cornerstone of VivoPower’s Power‑to‑X strategy, which repurposes excess renewable‑powered infrastructure for high‑performance computing. By adding a low‑cost, climate‑advantaged Nordic data‑center, the company aims to create a sovereign AI hub capable of supporting large‑language‑model training and inference for global enterprise clients. The 50‑year land lease and sub‑$0.035/kWh energy cost give the facility a competitive edge in the AI‑compute market.
VivoPower’s financial position remains fragile. The company reported a negative EBITDA of $8.27 million in the last twelve months and a $12.8 million loss for the fiscal year ended June 30 2025. An auditor’s report flagged a material uncertainty related to going concern if sufficient funding is not secured. The acquisition’s financing structure—deferred vendor finance and convertible preference shares—will require shareholder approval at a January 2026 meeting and will be supported by an at‑the‑market equity program that can raise up to $11.4 million.
Market reaction to the strategic pivot has been mixed. Following the announcement of the AI‑computing focus on December 23, the stock fell 4 % to 5.56 %, reflecting investor concerns about the company’s cash burn and the execution risk of monetizing its legacy solar portfolio. Analysts have downgraded the company to “Sell” or “Hold” in recent weeks, citing weak financials and high leverage.
Kevin Chin, Executive Chairman and CEO, said the Power‑to‑X framework gives VivoPower a competitive advantage in securing sovereign‑grade power and land. He added that AI computational requirements have surpassed crypto‑mining in profitability, underscoring the company’s shift toward higher‑margin opportunities. The acquisition is expected to be highly accretive, with an indicative 4× pro‑forma EBITDA, and could return the company to group‑level profitability after closing.
The deal carries significant risks. The company’s going‑concern warning, high debt load, and reliance on shareholder approval for the convertible preference shares create execution uncertainty. If the acquisition does not close or if the data‑center’s capacity is not fully utilized, the expected accretiveness may not materialize, potentially exacerbating the company’s financial challenges. Nonetheless, the low‑cost, renewable‑powered facility positions VivoPower to capture a growing AI‑compute market, offering a potential upside if the company can navigate its current financial constraints.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.