Bit Digital’s subsidiary will invest over $1 billion in a project that could reach 200 MW of capacity for high-performance computing.
WhiteFiber Inc., a subsidiary of Bit Digital Inc. (Nasdaq: BTBT) specializing in high-performance computing (HPC) infrastructure, has announced the acquisition of a 96-acre industrial site in Madison, North Carolina. The deal includes transforming a facility of approximately 93,000 square feet into a state-of-the-art data center campus focused on artificial intelligence (AI).
The company has reached an agreement with Duke Energy for an initial capacity of 99 megawatts (MW), with 24 MW available around September 1, 2025. WhiteFiber expects to have the first phase of the project operational before the end of the year. In the medium term, the campus could scale up to 200 MW, subject to new electric service agreements and other regulatory conditions.
A Strategic Location in the Southeast’s Tech Hub
The campus’s location in the Piedmont Triad is considered crucial for its viability and commercial appeal. Less than 160 kilometers from cities like Charlotte, Raleigh, Winston-Salem, and Greensboro, and just 21 kilometers from the Virginia border, the area is home to numerous large-scale data center operators (hyperscalers). This proximity to multiple metropolitan areas also benefits low-latency AI inference workloads.
WhiteFiber’s new campus has already attracted interest from potential HPC clients. According to the company, it is in negotiations with multiple operators and has signed a non-binding letter of intent with a first client.
Tax Incentives and Institutional Support
The project has been officially recognized as a qualified data center by the state of North Carolina, allowing it to benefit from sales and use tax exemptions. This certification reinforces the commitment of state and local authorities to attract high-value technology investments.
“North Carolina has been leading the development of high-performance computing for decades thanks to our universities, the Research Triangle, and our forward-looking vision,” said Governor Josh Stein. “The arrival of WhiteFiber to our tech community will help solidify that leadership.”
Rockingham County Commissioner Board President Kevin Berger welcomed the announcement as “an extraordinary boost for the region,” highlighting a planned investment exceeding $1 billion and the creation of over 60 skilled jobs. Madison Mayor William Phillips echoed this sentiment, emphasizing the value of transforming the former Unifi textile plant into a cutting-edge infrastructure for the digital economy.
A Commitment to Critical Infrastructure for AI
Sam Tabar, CEO of Bit Digital, stated that this acquisition represents “a significant step in expanding our infrastructure platform for artificial intelligence.” In his words, “the location, size, and energy profile of the asset make it a scarce and strategic resource to meet the growing demand from AI sector clients.”
The property purchase has been financed with the company’s own funds, utilizing a liquidity reserve set aside in anticipation of closing this deal. Bit Digital plans to initiate a commercial mortgage financing process on the asset shortly.
A Key Move in the Race for AI Data Centers
WhiteFiber’s initiative is part of a growing trend in the U.S., where operators and tech companies compete to deploy massive computational capabilities for training and inferring artificial intelligence models. Availability of energy, proximity to urban nodes, legal security, and tax incentives are increasingly determining factors in location choices.
The Madison campus aims to become a significant node in this network of infrastructure, leveraging Bit Digital’s background in emerging technologies such as blockchain and now AI.
The project will still need to overcome several regulatory and technical hurdles, including obtaining additional energy agreements to reach the projected 200 MW, but it has already caught the attention of both investors and the local tech ecosystem.
Risks and Uncertainties
In its communication to investors, Bit Digital reiterated that its operations carry inherent risks. The company reminded that, although it ceased operations in China in 2021, there remains some residual exposure to potential regulatory investigations. Additionally, it warns that factors such as global mining difficulty, Bitcoin network evolution, or the operational status of its facilities could affect its financial results.
In any case, the acquisition of the land in North Carolina and the push for an AI-oriented data campus reinforce Bit Digital’s diversification strategy beyond cryptocurrency mining, positioning it in one of the most promising sectors at this time.
via: bit-digital