DMG Signs Letter of Intent for 50‑Megawatt AI Colocation at Christina Lake
A non-binding letter proposes debt financing with long-term commercial terms to convert the mining site to AI colocation upon execution of a definitive agreement.
Overview
- DMG announced a letter of intent to provide 50 megawatts of AI colocation capacity at its Christina Lake, British Columbia, facility with an unnamed tenant under NDA.
- The LOI is non-binding and conditions the conversion on negotiating and executing a Definitive Agreement, so the site will continue operating mainly as a Bitcoin mine until that happens.
- Commercial terms outlined in the LOI include an initial 12-year contract term with rights to renew up to three additional five-year periods plus market-based monthly charges and annual escalations.
- DMG said it would deliver capacity in phases and set a target to complete the first phase by December 31, 2026 if a Definitive Agreement is reached.
- The company intends to seek debt as the primary financing route for the conversion, a move that creates capital and execution risk but also advances a strategic shift from mining toward AI data-center revenue.