Abits Group outlines Tennessee infrastructure as it evaluates AI and HPC hosting
Abits Group is evaluating AI and HPC hosting opportunities using datacenters in Duff and Memphis, Tennessee, while proposing a partner-funded model for initial deployment.
Abits Group Inc. (NASDAQ:ABTS) said it is assessing artificial intelligence and high-performance computing hosting opportunities using its existing datacenter infrastructure in Tennessee. The company said its facilities provide approximately 24 MW of existing power capacity, with potential expansion to 34 MW, but confirmed that it has not entered into definitive AI or HPC hosting agreements.
#Tennessee facilities provide existing power capacity
Abits Group operates sites in Duff and Memphis, Tennessee. Its wholly owned Duff facility has 12 MW of existing power capacity, along with electrical infrastructure, cooling systems and on-site operating capabilities.
The Memphis site has 12 MW of existing power capacity under a third-party hosting arrangement. Abits Group said that facility could expand to 22 MW, creating an additional 10 MW opportunity. Across the two locations, the company describes its current capacity as approximately 24 MW, with potential expansion to 34 MW.
Abits Group also said it installed two upgraded water wells at Duff in 2025. According to the company, the upgrades contributed to lower cooling-related operating costs.
Stephen Faucetta, Chairman and CEO of Abits Group, said the company’s immediate objective is to secure its first paying AI hosting customer and begin an initial deployment without incurring new debt.
Under the proposed structure, Abits Group would provide existing infrastructure, agreed power capacity and on-site operating support. A commercial partner would supply or fund the computing equipment, provide customer workloads and make upfront hosting payments intended to cover agreed deployment expenses and initial operating requirements.
The company said customers would provide GPUs and other computing hardware under the proposed model. Abits Group believes this approach could reduce its capital requirements compared with purchasing and operating its own computing equipment, although it also identified the possibility that additional debt or other financing may be required.
#Infrastructure cited as a potential development advantage
Abits Group said its operating sites and existing electrical, cooling and water infrastructure could reduce certain development requirements, costs and timelines compared with constructing new facilities. The company also pointed to existing permitting and site development, as well as experience managing energy-intensive computing equipment and facility operations.
These capabilities may need to be adapted or expanded for AI and HPC equipment. Abits Group said its strategy could also include potential acquisitions of additional infrastructure assets.
Abits Group said it has not entered into definitive AI or HPC hosting agreements. The proposed strategy therefore depends on securing suitable customers, equipment and strategic partners, as well as establishing the necessary commercial arrangements.
The company identified risks related to its lack of experience in AI or HPC hosting, the cost and feasibility of upgrading existing facilities, obtaining additional power capacity, securing suitable sites and obtaining the rights needed to use existing facilities for AI and HPC hosting.
It also cited the availability, cost, financing and integration of potential acquisitions; financing, electricity availability and costs; utility, permitting and regulatory requirements; network and cooling availability; changes in demand; technological change; competition; and supply chain constraints. Abits Group said these factors could cause actual results to differ materially from its forward-looking statements.
Abits Group is a U.S.-focused digital infrastructure company. Through its U.S. subsidiary, Abit USA, Inc., it owns or operates infrastructure supporting energy-intensive computing applications and is evaluating opportunities in artificial intelligence, high-performance computing and related digital infrastructure services.
Abits Group said its Duff and Memphis, Tennessee facilities provide approximately 24 MW of existing power capacity.
The company said capacity could potentially expand to 34 MW, including an additional 10 MW opportunity at Memphis.
Abits Group is proposing a model in which a commercial partner supplies or funds computing equipment and provides upfront hosting payments.
The company’s immediate objective is to secure its first paying AI hosting customer, but it has not entered into definitive AI or HPC hosting agreements.
Abits Group said additional debt or other financing may be required and identified operational, regulatory, financing and market risks.
Abits Group highlighted its existing datacenter infrastructure and power capacity as it evaluates opportunities in artificial intelligence and high-performance computing hosting. The company said its two Tennessee sites provide approximately 24 MW of existing power capacity, with potential to expand to 34 MW.
Abits Group operates datacenters in Duff and Memphis, Tennessee. Duff is a wholly owned facility, while Memphis operates under a third-party hosting arrangement.
Abits Group's two Tennessee facilities provide approximately 24 MW of existing power capacity. Duff has 12 MW and Memphis has 12 MW.
Abits Group said its Tennessee infrastructure could potentially expand from approximately 24 MW to 34 MW. The additional opportunity is 10 MW at the Memphis facility, which the company said could expand to 22 MW.
Abits Group said its wholly owned Duff, Tennessee facility has 12 MW of existing power capacity, electrical infrastructure, cooling systems and on-site operational capabilities. The company also installed two upgraded water wells at Duff in 2025, which it said contributed to lower cooling-related operating costs.
Abits Group proposes contributing existing infrastructure, agreed power capacity and on-site operating support, while a commercial partner supplies or funds the computing equipment and provides upfront hosting payments. The company said the model is intended to support initial deployment without additional debt financing.
Under Abits Group's proposed model, customers would provide GPUs and other computing hardware, while a commercial partner would supply or fund the equipment. The company said this could reduce its capital requirements compared with purchasing and operating its own computing equipment.
Stephen Faucetta, Chairman and CEO of Abits Group, said the company's immediate objective is to secure its first paying AI hosting customer and launch the initial deployment without incurring new debt. He said Abits intends to work with a partner providing computing equipment, customer workloads and upfront hosting payments.
Abits Group said it has not entered into definitive AI or HPC hosting agreements. Its proposed hosting model and potential partnerships therefore remain subject to securing customers, equipment and strategic partners.
Abits Group said its operating facilities, electrical infrastructure, cooling and water systems, permitting and experience managing energy-intensive computing could reduce certain development requirements, costs and timelines compared with building new facilities. The company described these as potential advantages rather than completed outcomes.
Abits Group identified risks including its lack of experience in AI or HPC hosting, the cost and feasibility of upgrading facilities, obtaining additional power and suitable sites, securing financing, equipment, customers and partners, and the possibility that additional debt or other financing may be required. It also cited electricity costs, utility, permitting and regulatory requirements, network and cooling availability, changes in demand, technological change, competition and supply chain constraints.
Abits Group said its proposed approach could include potential acquisitions of additional infrastructure assets. The company also identified the availability, cost, financing and integration of potential acquisitions as risks to its AI and HPC hosting strategy.
Abits Group's shares trade on Nasdaq under the ticker symbol NASDAQ:ABTS.
Abits Group is a U.S.-focused digital infrastructure company with operations in the United States. Through its U.S. subsidiary, Abit USA, Inc., it owns or operates infrastructure supporting energy-intensive computing applications and is evaluating opportunities in artificial intelligence, high-performance computing and related digital infrastructure services.