WhiteFiber Closes $60M Purchase of Two NC Data Center Sites as NC-1 Financing Stays Unsettled
About 35 MW of the 40 MW NC-1 deployment is live after switchgear problems, and third-quarter results are due Nov. 10.
WhiteFiber (WYFI) said on Nov. 3 that it completed its $60 million cash purchase of two industrial properties in Yadkin County, North Carolina, that it plans to convert into AI data centers, and gave an update on its NC-1 campus, where financing for the initial contracted deployment is still not assured. Shares were $10.49, up $1.23, or about 13%, in the session. The company will report third-quarter results on Nov. 10.
The two new sites
| Item | Detail |
|---|---|
| Sites | NC-2 and NC-3, industrial properties in Yadkin County, about 55 miles from the NC-1 campus in Madison |
| Size | About 120 acres and 500,000 square feet of warehouse space |
| Power | At least 60 MW of initial gross utility capacity, with potential for about 200 MW within seven years, subject to confirmation and power availability |
| Timing | Initial ready-for-service capacity targeted for late 2027 |
| Seller | Occupies parts of the properties under partial leaseback arrangements expected to offset some carrying costs |
By our calculation, $60 million works out to about $1.0 million per MW of initial capacity, or about $0.3 million per MW at the full 200 MW potential. Customer demand is not yet contracted: WhiteFiber has non-binding letters of intent for NC-2, NC-3 and NC-1 expansion capacity, including from investment-grade counterparties. It said development spending is expected to follow definitive customer agreements and financing.
NC-1 update
- Operations. About 35 MW of the contracted 40 MW of IT deployment is operational, and work continues on the remaining 5 MW.
- Delay. Switchgear commissioning issues interrupted service and billing for the first 20 MW IT data hall and pushed the ramp to full contracted billing beyond the previously expected August timeframe.
- Costs. Initial deployment capital spending is substantially complete, and total development costs are expected to stay within the initial budget.
- Financing. Financing for the initial deployment is in progress with a prospective lending group, but WhiteFiber said there can be no assurance it will close.
By our calculation, about 87.5% of the contracted NC-1 capacity is live.
What to watch
- Nov. 10 results. Revenue, billing recovery at NC-1 and any update on the financing.
- Financing. Whether the lending group closes and on what terms.
- Contracts. Conversion of the letters of intent into definitive customer agreements.
- Power. Confirmation of utility capacity for NC-2 and NC-3.
- Related coverage. See our reports on IREN, XMax and Oracle's bond sale.
Sources: WhiteFiber's investor relations site, its November 3 announcement and its earlier SEC filing on the acquisition agreement. The share price comes from market data and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
Readers also read
MarketCatalyst is not a registered investment advisor and does not manage client assets. Content on this platform is provided for informational and educational purposes only. It is not investment advice, and MarketCatalyst is not a stock-picking or trade-alert service. Trading stocks and options involves risk, including the possible loss of principal. Consider your own goals, time horizon, and risk tolerance, and consult a qualified financial advisor before making any investment decision.