Phoenix
Group is pushing deeper into synthetic intelligence after a 43% income slide
in 2025, signing French developer DC Max to construct an 18-megawatt AI knowledge middle
in Lyon, the primary European deployment in what the Abu Dhabi-listed agency says
will scale to a couple of gigawatt of capability.
Singapore Summit: Meet the biggest
APAC brokers you recognize (and people you continue to do not!)
The Lyon
facility is the inaugural website underneath what Phoenix is looking its European Information
Heart Platform, a partnership structured round DC Max’s pipeline that the
companies worth at roughly $8 billion.
Phoenix
mentioned it has acquired the land, secured permits and lined up grid entry, with
development set to start in July 2026 and handover scheduled for the fourth
quarter of 2027 or the primary quarter of 2028.
The transfer
follows a now-familiar playbook within the Bitcoin mining sector. Full-year income
at Phoenix (ADX: PHX)
fell to $117.7 million from $205.7 million the yr earlier than, whereas the agency
reported a $271.7 million loss attributable to shareholders in opposition to a $167.4
million revenue in 2024.
Like Wall Avenue friends Core Scientific,
Riot Platforms and Bitfarms, Phoenix is steering its power-hungry infrastructure towards AI tenants
keen to pay a number of occasions extra per megawatt than present coin economics
help.
From Mining Losses to AI
Websites
The 2025
annual report Phoenix revealed final month confirmed the size of the decline.
Buying and selling income dropped 69% yr on yr, internet hosting income fell 62% and
self-mining income slipped 21%, dragging full-year income beneath $118 million.
Earnings
per share swung from a revenue of $0.028 to a lack of $0.045, with unrealized
truthful worth losses of $223.3 million on digital asset holdings driving most of
the bottom-line harm.
The pivot
has been telegraphed in steps. Final summer season, Phoenix unveiled a digital asset treasury
holding Bitcoin and Solana, turning into the primary ADX-listed firm to formalize such a construction as
an operational buffer in opposition to mining cash-flow volatility .
Across the
identical time, it disclosed inside recruitment for AI divisions and started
scouting websites for AI and high-performance computing capability. The Lyon deal
turns that scouting into the corporate’s first laborious dedication outdoors the Gulf.
Co-founder
and Group CEO Munaf Ali described the announcement as greater than incremental,
calling it “a real inflection level” for the agency. He added that
“the 1GW ambition is just not a ceiling; it’s a start line.”
Bitcoin Miners Crowd Into
AI Actual Property
The
repositioning throughout the listed mining sector has accelerated by 2025 and
into 2026 as post-halving margin stress squeezed coin economics.
Analysts
have estimated as much as 20% of the trade’s energy capability may very well be repurposed
for AI and HPC by the tip of 2027, with Goldman Sachs forecasting U.S. knowledge
middle energy demand to develop at a 15% compound annual charge by 2030.
Nasdaq-listed
Core Scientific not too long ago secured a financing
facility from Morgan Stanley of as much as $1 billion to fund its conversion from crypto mining to
high-density colocation.
Riot
Platforms appointed three new board members with knowledge middle and AI expertise,
together with a former Meta government. Bitfarms went additional, renaming itself Keel
Infrastructure and halting all new Bitcoin mining funding.
The
monetary logic is easy. Bitcoin miners usually commerce at 6 to 12
occasions EBITDA, whereas knowledge middle operators commerce between 20 and 25 occasions. A
clear operational pivot, with long-term tenant contracts changing risky
coin income, can help a significant a number of re-rating over time.
France Targets the
Hyperscaler Backlog
Demand for
AI compute in Europe has run forward of provide, with hyperscalers and huge
enterprises reserving capability years upfront. Conventional new-build timelines
of 36 to 48 months depart most operators struggling to maintain tempo.
Lyon provides
a number of benefits for builders keen to maneuver shortly. France’s
second-largest metropolis has an industrial base, dense electrical infrastructure and
land costs nicely beneath these round Paris, which has emerged as Europe’s most
contested knowledge middle market.
DC Max additionally
brings present permits and grid agreements on a few of its websites, which Phoenix
mentioned permits it to compress the standard timeline.
“The
demand is there. The websites are there,” DC Max Chief Govt Romain
Fremont mentioned in an announcement, including that the tie-up provides the French developer
entry to capital and operational depth that might have been troublesome to
assemble alone.
A 1GW Ambition Meets
Execution Danger
The Lyon
website joins roughly 550 megawatts of capability Phoenix already operates throughout
the UAE, Oman, North America and Ethiopia, infrastructure initially constructed for
Bitcoin mining and now being repositioned for AI and HPC workloads.
The agency
additionally holds a 13.9% stake in Bitzero, a data-center-focused firm that listed
on the Canadian Securities Trade final yr, whereas Ali himself has been shopping for shares to again the pivot technique.
DC Max, for
its half, claims a roughly two-gigawatt portfolio and says it’s backed by a
group with greater than €6 billion in funding expertise.
Phoenix
Group debuted on the ADX on the finish of 2023, and since then its share worth has
fallen 60% to the present stage of AED 0.90.
Phoenix
Group is pushing deeper into synthetic intelligence after a 43% income slide
in 2025, signing French developer DC Max to construct an 18-megawatt AI knowledge middle
in Lyon, the primary European deployment in what the Abu Dhabi-listed agency says
will scale to a couple of gigawatt of capability.
Singapore Summit: Meet the biggest
APAC brokers you recognize (and people you continue to do not!)
The Lyon
facility is the inaugural website underneath what Phoenix is looking its European Information
Heart Platform, a partnership structured round DC Max’s pipeline that the
companies worth at roughly $8 billion.
Phoenix
mentioned it has acquired the land, secured permits and lined up grid entry, with
development set to start in July 2026 and handover scheduled for the fourth
quarter of 2027 or the primary quarter of 2028.
The transfer
follows a now-familiar playbook within the Bitcoin mining sector. Full-year income
at Phoenix (ADX: PHX)
fell to $117.7 million from $205.7 million the yr earlier than, whereas the agency
reported a $271.7 million loss attributable to shareholders in opposition to a $167.4
million revenue in 2024.
Like Wall Avenue friends Core Scientific,
Riot Platforms and Bitfarms, Phoenix is steering its power-hungry infrastructure towards AI tenants
keen to pay a number of occasions extra per megawatt than present coin economics
help.
From Mining Losses to AI
Websites
The 2025
annual report Phoenix revealed final month confirmed the size of the decline.
Buying and selling income dropped 69% yr on yr, internet hosting income fell 62% and
self-mining income slipped 21%, dragging full-year income beneath $118 million.
Earnings
per share swung from a revenue of $0.028 to a lack of $0.045, with unrealized
truthful worth losses of $223.3 million on digital asset holdings driving most of
the bottom-line harm.
The pivot
has been telegraphed in steps. Final summer season, Phoenix unveiled a digital asset treasury
holding Bitcoin and Solana, turning into the primary ADX-listed firm to formalize such a construction as
an operational buffer in opposition to mining cash-flow volatility .
Across the
identical time, it disclosed inside recruitment for AI divisions and started
scouting websites for AI and high-performance computing capability. The Lyon deal
turns that scouting into the corporate’s first laborious dedication outdoors the Gulf.
Co-founder
and Group CEO Munaf Ali described the announcement as greater than incremental,
calling it “a real inflection level” for the agency. He added that
“the 1GW ambition is just not a ceiling; it’s a start line.”
Bitcoin Miners Crowd Into
AI Actual Property
The
repositioning throughout the listed mining sector has accelerated by 2025 and
into 2026 as post-halving margin stress squeezed coin economics.
Analysts
have estimated as much as 20% of the trade’s energy capability may very well be repurposed
for AI and HPC by the tip of 2027, with Goldman Sachs forecasting U.S. knowledge
middle energy demand to develop at a 15% compound annual charge by 2030.
Nasdaq-listed
Core Scientific not too long ago secured a financing
facility from Morgan Stanley of as much as $1 billion to fund its conversion from crypto mining to
high-density colocation.
Riot
Platforms appointed three new board members with knowledge middle and AI expertise,
together with a former Meta government. Bitfarms went additional, renaming itself Keel
Infrastructure and halting all new Bitcoin mining funding.
The
monetary logic is easy. Bitcoin miners usually commerce at 6 to 12
occasions EBITDA, whereas knowledge middle operators commerce between 20 and 25 occasions. A
clear operational pivot, with long-term tenant contracts changing risky
coin income, can help a significant a number of re-rating over time.
France Targets the
Hyperscaler Backlog
Demand for
AI compute in Europe has run forward of provide, with hyperscalers and huge
enterprises reserving capability years upfront. Conventional new-build timelines
of 36 to 48 months depart most operators struggling to maintain tempo.
Lyon provides
a number of benefits for builders keen to maneuver shortly. France’s
second-largest metropolis has an industrial base, dense electrical infrastructure and
land costs nicely beneath these round Paris, which has emerged as Europe’s most
contested knowledge middle market.
DC Max additionally
brings present permits and grid agreements on a few of its websites, which Phoenix
mentioned permits it to compress the standard timeline.
“The
demand is there. The websites are there,” DC Max Chief Govt Romain
Fremont mentioned in an announcement, including that the tie-up provides the French developer
entry to capital and operational depth that might have been troublesome to
assemble alone.
A 1GW Ambition Meets
Execution Danger
The Lyon
website joins roughly 550 megawatts of capability Phoenix already operates throughout
the UAE, Oman, North America and Ethiopia, infrastructure initially constructed for
Bitcoin mining and now being repositioned for AI and HPC workloads.
The agency
additionally holds a 13.9% stake in Bitzero, a data-center-focused firm that listed
on the Canadian Securities Trade final yr, whereas Ali himself has been shopping for shares to again the pivot technique.
DC Max, for
its half, claims a roughly two-gigawatt portfolio and says it’s backed by a
group with greater than €6 billion in funding expertise.
Phoenix
Group debuted on the ADX on the finish of 2023, and since then its share worth has
fallen 60% to the present stage of AED 0.90.
