German Firm Northern Data Evaluating U.S. IPO for AI and Data Center Units
Northern Data AG, a German company specializing in high-performance computing infrastructure, is exploring the possibility of launching an initial public offering (IPO) in the United States for its AI cloud computing and data center divisions. The potential valuation for this IPO could soar up to $16 billion, as per sources from Bloomberg News.
Exploring a U.S. IPO
Northern Data is contemplating the merger of its cloud computing arm, Taiga, with its data center operations, Ardent, to establish a new entity for a potential U.S. IPO. The new combined entity might be listed on the Nasdaq as early as the first half of 2025.
- This decision aligns with the recovery in the U.S. IPO market, bolstered by investor confidence in economic stability.
- There has been a resurgence in new listings in 2024, with a growing interest in AI technologies following the introduction of OpenAI’s ChatGPT.
- Big tech players such as Microsoft and Alphabet Inc. have significantly invested in the necessary infrastructure to support AI applications.
Northern Data’s Position
The company, headquartered in Frankfurt, went public in 2018 and has witnessed a 5% decline in its shares this year, leading to a market valuation of around €1.3 billion ($1.4 billion).
- Adapting to changing market conditions, Northern Data has transformed its energy-intensive data centers to facilitate AI applications, moving away from crypto mining.
- Previously focused on Ether mining, the company shifted its focus to high-performance computing and other initiatives after an Ethereum blockchain update.
- In November, Northern Data secured a €575 million debt financing deal from Tether Group, with Tether becoming a major investor by acquiring a Tether-related vehicle for €400 million in January.
- Utilizing these funds, the company plans to acquire advanced AI chips from Nvidia Corp. and aims to deploy about 20,000 H100 chips by the end of the summer.
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