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Ionic Digital Cedarvale

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Cedarvale Facility · Nscale Ward County
Partially operational

A crypto-to-AI conversion in one transaction: Ionic Digital's 234 MW Cedarvale campus near Barstow pivoted from self-mining to a 10-year, $2B triple-net colocation lease with AI cloud provider Nscale, which is using the site to host roughly 104,000 Nvidia GB300 GPUs under a $14B Microsoft compute contract, one of the cleanest bitcoin-miner-to-AI-landlord transitions in the Permian Basin.

234 MWPlanned power
Developer
Ionic Digital Inc. (original construction managed by Hut 8)
Owner
Nscale Ward County, LLC: under a 10-year triple-net lease from Ionic Digital Mining, LLC
Tenant
Nscale (AI cloud provider): hosting a ~$14B Microsoft AI compute contract, ~104,000 Nvidia GB300 GPUs
Power detail
234 MW current energy capacity, leased in full to Nscale and delivered in August 2026. Ionic is seeking TNMP and ERCOT approval to raise the property to approximately 700 MW by end-2027; on 2026-09-10 Ionic said ERCOT had provisionally classified the remaining 466 MW of that request as Base Load under Batch Zero, subject to ERCOT's verification and audit process and to final action by the Public Utility Commission of Texas. Of the expansion, Nscale is contractually committed to a further 89 MW (disclosed, unapproved) and holds a right of first refusal on the remainder. Nscale has in turn granted Microsoft a right of first refusal on 377 MW of that remainder if it becomes available, disclosed in Ionic's second quarter 2026 presentation and its July 2026 prospectus. No exercise window, price or expiry is published.
Power source
ERCOT grid; locally backed by the planned 3 MW 'Cedarvale Gas' project
Cooling
Nscale describes the campus as engineered for AI workloads with closed-loop direct-liquid cooling and rear-door heat exchangers. The site was originally air-cooled bitcoin infrastructure; neither party has disclosed the scope, cost or completion date of the conversion.
Compute
~104,000 Nvidia GB300 GPUs deploying through 2026 (Nscale/Microsoft AI cluster)
Construction start
~2022/2023
Est. completion
Crypto-era build complete 2024; AI handover Dec 2025; GB300 GPU deployment through 2026
Grid strategy
ERCOT grid
County
Ward
Nearest city
Barstow
Announced
2025-10-15