VivoPower International PLC (VVPR) announced Tuesday that it's locked down an exclusive agreement to buy an operating data center in Norway that runs entirely on hydropower. The company sees this as a foundational piece of its pivot toward AI infrastructure.

The facility isn't theoretical. It's already running with more than 40 megawatts of energized capacity, all fed by 100% renewable hydropower.

The Numbers Behind the Deal

VivoPower values the site at roughly $40 million and projects it will contribute about $10 million in pro forma EBITDA. That puts the acquisition at an indicated four times pro forma EBITDA multiple, which the company describes as highly accretive.

What Makes It AI-Ready

The site's appeal comes down to a few specific factors. First, the hydropower is already energized and priced below $0.035 per kilowatt-hour. That's cheap power, and it matters when you're running compute-heavy AI workloads. Second, the Nordic location naturally supports efficient cooling. VivoPower also highlighted a 50-year land lease and noted that regulators may greenlight an additional 40 megawatts of capacity in 2026.

How VivoPower Plans to Pay for It

The company expects to finance the transaction through deferred vendor financing combined with a convertible preference share tranche. Those preference shares would carry a $6.80 conversion price and a 6% payment-in-kind annual coupon.

Issuing the shares requires shareholder approval, which VivoPower plans to seek at a general meeting in January 2026. If approved, the deal should close that same month.

Once the acquisition goes through, VivoPower's Caret Digital division intends to shift the site away from blockchain compute co-hosting and toward what it's calling a Sovereign AI Hub. The focus will be large language model training and inference for enterprises looking for carbon-neutral computing options.

VivoPower has been exploring multiple financing routes to support its AI expansion, including evaluating its solar assets.

VVPR Price Action: VivoPower International shares were down 9.96% at $2.39 at the time of publication on Tuesday.