Arkon Energy, a prominent data center infrastructure company, has successfully concluded a private funding round, raising a substantial $110 million to fuel its ambitious growth plans and venture into cutting-edge technologies. This exclusive announcement comes directly from Arkon Energy's CEO, Josh Payne, in conversation with TechCrunch.The funding round, spearheaded by Bluesky Capital Management, saw participation from key investors including Kestrel 0x1 and Nural Capital. Since its inception in 2021, Arkon Energy has experienced remarkable progress, commencing with a 5-megawatt facility in Australia and subsequently expanding to an impressive 130 megawatts. The company has strategically ventured into global markets, notably the U.S. and Europe, drawing interest from both bitcoin miners and clients engaged in AI and machine learning with substantial computing demands.

Approximately $80 million from the funding will be allocated towards acquiring an additional 200-megawatt capacity across new data centers in strategic locations such as Ohio, North Carolina, and Texas. This move aligns with Arkon's strategic vision to boost its total megawatts by an astounding 130% by mid-2024, complementing its existing 100-megawatt facility in Ohio acquired in June.

CEO Josh Payne emphasized the attractiveness of the U.S. market due to domestic demand, a robust energy industry, regulatory stability, and institutional investor appeal. Payne highlighted Arkon's role as a landlord, owning essential infrastructure assets that accommodate institutional-grade bitcoin mining companies within its U.S. data center portfolio.Arkon Energy's distinctive business model focuses on acquiring distressed data center assets globally, driven by the unprecedented and monumental demand for data center capacity. Payne underscored the necessity of professionally managed and operated electrical infrastructure to support energy-intensive platforms.

The remaining $30 million from the funding will be dedicated to launching an artificial intelligence cloud service project at Arkon's data center in Norway. This initiative aims to cater to the growing demand for generative AI and large language model training markets. Payne stressed the recent surge in demand for these applications, coupled with a shortage of specialized physical infrastructure. Arkon aims to bridge this gap by providing the essential infrastructure layer crucial for the AI sector.As the past year witnessed a meteoric rise in AI applications and potential growth for bitcoin in mainstream institutional markets, Arkon Energy is strategically positioned to scale exponentially. With a visionary approach to both bitcoin mining and AI, Arkon emerges as a key player in the dynamic landscape of data center innovation and technological advancement.