US data center developer and crypto firm Bit Digital has acquired the site for a build-to-suit 5MW data center expansion project in Montreal, Canada.

Bit Digital acquired MTL2 for CA$33.5 million (US$23.3m), excluding fees. The acquisition closed on December 27, 2024.

The company initially used cash on hand to fund the acquisition and is working to obtain mortgage financing to cover the site's acquisition and subsequent infrastructure expenditures.

Bit Digital plans to spend CA$27.6 million (US$19.3m) to develop the site to meet Tier III standards. The site is expected to reach commercial operations in May 2025.

“We are in the process of securing cost-effective mortgage financing for this project, which we intend to announce upon finalization. We believe this will ultimately showcase Bit Digital’s ability to cost-effectively finance its data center buildout in a non-dilutive manner,” said Sam Tabar, CEO of Bit Digital.

MTL2 is a 160,000 sq ft (14,864 sqm) site that was previously used as an encapsulation manufacturing facility.

Following the acquisition, Bit Digital plans to retrofit the site with direct-to-chip liquid cooling technology to support AI and other high-performance workloads with 150kW rack density.

The company will collaborate with third parties to implement a heat reject loop, enhancing the data center's sustainability profile. MTL2 will be powered entirely by hydroelectric power provided by Hydro-Québec.

The acquisition is part of the company’s broader strategy to expand its HPC data center footprint to 32MW during 2025.

Bit Digital announced its entry into the colo space in November by acquiring Enovum, a Canadian data center operator, for CA$62.8 million (US$46m).

In the same month as the Enovum deal, Bit Digital signed an HPC deal with gaming company Boosteroid. Under the agreement, Bit Digital finalized a purchase order for the initial 300 GPUs.

Bit Digital has Bitcoin mining operations located in the US (New York, Kentucky, and Texas), Canada, and Iceland.