A top data center provider is spending $500 million to turn former cryptomining sites into AI cloud facilities (www.techradar.com)

AiOnX has acquired a 77% stake in Genesis Digital Assets (GDA) for $500 million, gaining control of 15 cryptocurrency mining data centers in the US and Sweden. This strategic acquisition not only enhances AiOnX's position in the hyperscaler market but also secures access to 1.3 Gigawatts of power, a critical resource for AI data centers amidst growing demand. As traditional hyperscaler buildouts face increasing power limitations, this deal allows AiOnX to repurpose legacy mining infrastructure for AI and high-performance computing, marking a significant pivot within the industry. The conversion of these facilities reflects a larger trend where cryptocurrency miners are shifting their focus to AI workloads, driven by the higher profitability and predictable revenues associated with AI contracts. With potential margins of up to 85% and multi-year visibility in AI projects, this shift is seen as increasingly viable given the fluctuating profitability of cryptocurrency mining. The acquisition underscores the importance of power connectivity in digital infrastructure and demonstrates the evolving landscape of data centers, as operators look to maximize their resources in response to a booming AI market.