Northern Data AG Considers U.S. IPO for AI Cloud Computing and Data Center Units
Northern Data AG, a German firm known for its high-performance computing infrastructure, is exploring the possibility of launching a U.S. initial public offering (IPO) for its AI cloud computing and data center units. According to sources from Bloomberg News, the potential valuation for this IPO could reach a staggering $16 billion.
The company is considering merging its cloud computing branch, Taiga, with its data center operations, Ardent, to create a new entity for a potential U.S. IPO. The combined firm could be listed on the Nasdaq as early as the first half of 2025.
This decision comes at a time when the U.S. IPO market is experiencing a resurgence, fueled by investor confidence in economic stability and a renewed interest in new listings. The recent introduction of OpenAI’s ChatGPT has also sparked a surge in demand for AI technologies, leading to substantial investments in the sector by major tech companies like Microsoft and Alphabet Inc.
Northern Data is currently in discussions with potential advisors regarding the IPO and plans to engage lead banks in the near future. However, the company may choose not to proceed with the IPO based on the outcome of these strategic discussions. As of now, Northern Data has not officially commented on its plans for the IPO.
Despite its recent struggles in the market, with shares falling by approximately 5% this year, Northern Data has been adapting its data centers to support AI applications in response to changes in the crypto mining industry. Previously a significant Ether miner, the company shifted its focus to high-performance computing following updates to the Ethereum blockchain.
In a move to bolster its operations, Northern Data secured a €575 million debt financing agreement from Tether Group in November, with Tether becoming a key investor by purchasing a Tether-related vehicle for €400 million in January. The company is utilizing these funds to acquire advanced AI chips from Nvidia Corp., with plans to deploy around 20,000 H100 chips by the end of the summer.
