Northern Data AG, a German company known for its high-performance computing infrastructure, is reportedly considering an initial public offering (IPO) in the United States for its AI cloud computing and data center units. This potential IPO could be valued at up to $16 billion, according to sources from Bloomberg News.
The plan involves combining Northern Data’s cloud computing branch, Taiga, with its data center operations, Ardent, to create a new entity for the prospective IPO. If all goes as planned, this combined company could be listed on the Nasdaq as early as the first half of 2025.
The decision to explore an IPO in the US comes at a time when the US IPO market is recovering and experiencing renewed interest in new listings. The increasing demand for AI technologies, fueled by the introduction of OpenAI’s ChatGPT, has also contributed to this trend. Major technology companies like Microsoft and Alphabet Inc. have been investing heavily in AI infrastructure.
Northern Data is currently in talks with potential advisors for the IPO and expects to hire lead banks in the coming months. However, the final decision to proceed with the IPO will depend on the outcome of these discussions. The company has not made an official comment on its IPO plans yet.
As for its market position, Northern Data went public in 2018 and has seen its shares decline by around 5% this year. Its market valuation is currently estimated at approximately €1.3 billion ($1.4 billion).
In response to the shrinking business margins in crypto mining, Northern Data has been transforming its energy-intensive data centers to support AI applications. In the past, the company was actively involved in Ether mining, dedicating over 70% of its operations to it. However, it shifted its focus to high-performance computing and other projects after an update to the Ethereum blockchain.
To further support its AI initiatives, Northern Data secured a €575 million debt financing agreement with Tether Group in November. Tether also became a significant investor by purchasing a Tether-related vehicle for €400 million in January. The company plans to use these funds to acquire advanced AI chips from Nvidia Corp., with the deployment of approximately 20,000 H100 chips expected by the end of the summer.