Northern Data has acquired 2,000 NVIDIA H200 graphic processing units (GPUs) through a newly formed strategic partnership with Supermicro, an established provider of high-performance computing (HPC) server and storage solutions. Taiga Cloud, Northern Data’s cloud platform, will be the first in Europe to offer access to H200 GPU hardware, the most advanced GPUs currently available, demonstrating management’s commitment to be a leading innovator in the European HPC market. Delivery and deployment of these H200 GPUs is expected in Q424. The acquisition enhances Northern Data’s GPU capacity beyond its planned deployment of 20,000 NVIDIA H100 GPUs in FY24, solidifying its position as Europe’s largest AI hardware cluster and cloud service provider. At the end of June management confirmed that for FY23, revenue is expected to be towards the top end of its €65–€75m range, while adjusted EBITDA is anticipated at the higher end of the negative €20m to negative €5m range. For FY24, management expects revenue within a €200–240m range, underpinning its confidence in achieving FY25 revenues of €520–570m.

Northern Data has announced a number of initiatives that underline management’s commitment to be at the forefront of AI and high-performance computing (HPC) innovation in Europe. The launch of an AI Accelerator programme is designed to enable selected start-ups to rapidly scale or complete proof of concepts for their AI ideas. It gives selected start-ups access to Taiga Cloud, as well as technology and training from ecosystem partners including NVIDIA, Hewlett Packard (HPE) and Supermicro. This follows the announcement of a partnership with VAST Data, a leading AI infrastructure and data platform, to provide Taiga’s clients with advanced cloud data management solutions. We expect to initiate forecasts following publication of the company’s FY23 results.

Northern Data Group demonstrated progress made in Q124 alongside a capital markets day update, as it takes further steps in becoming a diversified high-performance computing (HPC) infrastructure solutions provider. It expects to deploy 20,000 NVIDIA H100 graphic processing units in FY24, cementing its position as Europe’s foremost AI hardware cluster. Key to this, 85% of its H100 capacity has already been sold. Management’s ambitious guidance is unchanged, expecting revenue of €200–240m in FY24 and €520–570m in FY25, with adjusted EBITDA growing from €50–80m in FY24 to €300–350m in FY25. The step-up in profitability in FY25 reflects the first year of full contribution from the company’s Ardent Data Centers, coinciding with peak H100 efficiency. Having moved away from being a pure-play cryptocurrency miner, Northern Data’s revenue profile is more predictable, stable and diversified. The group is fully capitalised and, with a clear capex plan that is front-end loaded, we believe its profitability profile should continue to improve.