Artificial Intelligence to become the growth engine for Northern Data’s Cloud Solutions division

PRESS RELEASE / IR NEWS

Artificial Intelligence to become the growth engine for Northern Data’s Cloud Solutions division
 

• From vision to execution: plan to achieve profitable growth through sustainable high-performance and sovereign Cloud Solutions in Europe
• Building on and enhancing the existing HPC infrastructure expected to unlock significant growth and to continue to secure Northern Data’s position as one of Europe's largest operators of HPC, ML & AI compute power
• Current run-rate of almost EUR 1 million per month in the Cloud Solutions division with expected growth ahead
• Release of revenue and EBITDA guidance FY2023 for the Cloud Solutions division targeted for next update

Frankfurt/Main – 24 April 2023 - In order to increase transparency for investors and to capitalize on the full extent of Northern Data’s capabilities, the company (Ticker symbol German stock market: NB2, ISIN: DE000A0SMU87) has organized itself into three defined business divisions: Bitcoin Mining, Cloud Solutions, and Data Centre Infrastructure Solutions.

In addition to the monthly operations update for the Bitcoin Mining division, Northern Data will also provide regular operational updates on the progress of both the Cloud Solutions and Data Centre Infrastructure Solutions divisions, going forward.

Today, Northern Data is releasing its first operations update for the Cloud Solutions division.

Northern Data’s Cloud Solutions division with its established GPU-based HPC infrastructure is in a prime position to scale quickly and fulfill the rapidly growing demand of compute power, triggered by the global AI boom.

The strong positioning of Northern Data’s Cloud Solutions division can, in the main, be credited to the investment made in purpose-built NVIDIA hardware in 2021 making the company the owner of Europe’s largest independent GPU cluster, which is supported by its own data center infrastructure.

Northern Data, being a European company, with data centers across Europe, offers customers the ability to achieve data sovereignty and European compliance standards for their HPC, ML, and AI needs.

Success Drivers

Powerful graphics cards and critical High-Performance Computing (HPC) infrastructure form the backbone of AI, ML, and Deep Learning tasks. HPC orchestrates hardware, software, and data center infrastructure to work in harmony on a common task, too large and too complex for a single computer to manage. This type of compute power enables organizations to train large and complex machine learning models, dramatically reducing the time to achieve the desired outcomes. In contrast to classical processors (CPUs), GPUs work in a parallel and optimized manner. They are purposely designed for computationally intensive processes in the areas of AI, ML, and Deep Learning.

Managing Director Cloud Solutions, Karl Havard explains: “We already own the largest, independent cluster of NVIDIA hardware in Europe, however, we recognize we are still at the beginning of our journey. It is our intention to offer our European customers and partners even more of the best compute capability available and enable them to unlock real value for their businesses. Additionally, by hosting this compute power onshore in Europe, in our smart data centers, powered primarily by sustainable energy, we also help our customers with their own ESG targets.”

Differentiated through Sustainability and Technology

Northern Data's offering distinguishes itself through providing outstanding efficiency in its data center operations (energy usage effectiveness at a certified 96% since 2021), low latency, CO₂-neutral energy, and scalability alongside European data sovereignty. Northern Data is working closely with NVIDIA to ensure it continues to be well-positioned to meet the high market demand for AI, ML, and Deep Learning, ensuring profitable growth can be targeted at scale in the future.

Future potential

Northern Data has taken a rigorous approach to the building of its sales pipeline for 2023, targeting blue-chip customers and attractive partnerships with organizations that have the HPC, ML, and AI expertise, but need the tools to maximize their own success.

The capital increase announced on 13 April 2023 will facilitate the acceleration of the company's plans for expansion, including the potential further development of its data center in Sweden, and the acquisition of the latest NVIDIA hardware.

With the current revenue run-rate at almost EUR 1 million per month, the company will aim to drive further growth in its revenue through its targeted approach to customers and partners. Northern Data will provide revenue and EBITDA guidance for the Cloud Solutions division in the next update.

Managing Director Cloud Solutions, Karl Havard adds, “Given the opportunities and our strong positioning, we believe there is the opportunity to realize revenues in the triple-digit million EUR range, in the medium term; this is a realistic basis for our future planning, partnerships and the targeted scaling of infrastructure solutions.”

About Northern Data:

Northern Data firmly believes that High-Performance Computing (HPC) will — quite literally — determine what the future will hold. HPC has the power to unlock unprecedented potential and opportunities for research and development, business, and government. Our multinational organization is rapidly staking out a position of global significance in the area of GPU- and ASIC-based solutions by designing and operating efficient, sustainable HPC infrastructures. We offer a combination of intelligent data centers, cutting-edge hardware and self-developed software for various HPC applications. These include bitcoin mining, blockchain technology, artificial intelligence, big data analytics, IoT, and graphics rendering. The Northern Data Group currently operates custom, large-scale data centers and proprietary mobile high-performance data centers. Northern Data’s shareholders include among others Apeiron Investment Group, Samara Asset Group (formerly Cryptology Asset Group), Block.one, BlackMars Capital, Krypto Ventures and the founders of the Company, who together represent the majority of the voting rights.

Investor Relations:

Jens-Philipp Briemle
Head of Investor Relations
An der Welle 3
60322 Frankfurt am Main
E-Mail:  jens-philipp.briemle@northerndata.de
Telephone: +49 171 557 6989.