Existing Tennessee infrastructure potentially expandable to 34 MW
Proposed partner-funded model designed to launch initial AI hosting operations without additional debt financing
DUFF, TN / ACCESS Newswire / November 5, 2026 / Abits Group Inc. (NASDAQ:ABTS) ("Abits" or the "Company"), a U.S.-focused digital infrastructure company, today highlighted its existing facilities, electrical infrastructure, cooling systems and expansion potential as it pursues opportunities in artificial intelligence (AI) and high-performance computing (HPC) hosting. The Company's established operations at two sites in Tennessee today provide approximately 24 megawatts (MW) of existing power capacity, with the potential to expand to 34 MW, providing an infrastructure foundation that Abits believes could reduce certain development requirements, costs and timelines compared with building new facilities.
Stephen Faucetta, Chairman and CEO of Abits Group, commented:
"One of the advantages we believe Abits has is that we're not starting from scratch. We already have operating facilities with significant electrical infrastructure, cooling systems and experience supporting power-intensive computing operations. Developing a new data center can involve substantial upfront investment and lengthy processes to secure property, obtain power, complete permitting and build the necessary infrastructure. With many developers relying on significant debt financing to fund new datacenter construction, we are already operating datacenters that are available to meet existing AI infrastructure and HPC demand.
"Our immediate objective is to secure our first paying AI hosting customer and launch the initial deployment without incurring new debt. We intend to work with a partner that provides the computing equipment, customer workloads and upfront hosting payments, while we contribute our existing infrastructure and hosting services. We believe this approach could allow us to establish recurring hosting revenue without the significant upfront capital investment associated with building new facilities and purchasing computing equipment, including through potential acquisitions of additional infrastructure assets."
Existing Infrastructure and Power Capacity
Abits operates datacenters in Duff and Memphis, Tennessee, providing an established physical and operational footprint for evaluating AI and HPC hosting opportunities.
- Duff, Tennessee: 12 MW of existing power capacity at the Company's wholly owned facility, including electrical infrastructure, cooling systems and on-site operational capabilities.
- Memphis, Tennessee: 12 MW of existing power capacity under a third-party hosting arrangement, with the potential to expand to 22 MW.
- Combined capacity: Approximately 24 MW across both facilities, expandable to 34 MW through the additional 10 MW opportunity at Memphis.
The Company has continued to invest in its infrastructure, including installing two upgraded water wells at Duff in 2025 that have contributed to lower cooling-related operating costs. Additionally, the Company believes its existing infrastructure and proposed hosting model may provide several other competitive advantages:
- Established facilities: Operating locations and existing site infrastructure provide a physical foundation for AI and HPC hosting, potentially reducing the need for new property acquisition and development.
- Cooling and water infrastructure: Existing cooling systems and upgraded water infrastructure provide a foundation that may be adapted or expanded to accommodate AI and HPC equipment requirements.
- Permitting and development: Existing operations and associated site infrastructure already have necessary permitting and development compared with new construction.
- Operating capabilities: Experience managing energy-intensive computing equipment, electrical consumption, cooling systems and facility operations provides capabilities that may be transferable to AI and HPC hosting.
- Customer-supplied computing equipment: Under the proposed hosting model, customers would provide GPUs and other computing hardware, reducing Abits' capital requirements compared with a model in which the Company purchases and operates its own computing equipment.
Under the proposed hosting model, Abits would provide its existing infrastructure, agreed power capacity and on-site operating support. A commercial partner would supply or fund the computing equipment and provide upfront hosting payments intended to cover agreed deployment expenses and initial operating requirements. The Company believes this structure could enable its initial AI hosting deployment without additional debt financing.
About Abits Group Inc.
Abits Group Inc. (NASDAQ:ABTS) is a digital infrastructure company with operations in the United States. Through its U.S. subsidiary, Abit USA, Inc., the Company owns or operates infrastructure supporting energy-intensive computing applications. Abits is evaluating opportunities to expand its business into artificial intelligence, high-performance computing and related digital infrastructure services. Additional information is available at www.abitsgroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company's AI infrastructure strategy, potential deployment of AI and high-performance computing systems, potential expansion of existing power capacity to 34 MW, the proposed customer-supplied computing equipment model, the potential to launch initial AI hosting operations without incurring new debt, potential acquisitions of additional infrastructure assets, potential development and capital cost advantages, the availability and suitability of its power, facilities and other infrastructure, potential partnerships and commercial arrangements, and the timing, scale and economic potential of the initiative. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. These include the Company's lack of experience in AI or HPC hosting; the cost and feasibility of upgrading its existing facilities; its ability to obtain and develop additional power capacity, secure suitable sites and obtain the necessary rights to use existing facilities for AI and HPC hosting; the availability, cost, financing and integration of potential acquisitions; the possibility that additional debt or other financing may be required for the initial AI hosting deployment; the Company's ability to secure financing, equipment, customers and strategic partners; the availability and cost of electricity; utility, permitting and regulatory requirements; network and cooling availability; changes in demand; technological change; competition; supply chain constraints; and other risks described in the Company's filings with the U.S. Securities and Exchange Commission, including under "Risk Factors" in its Annual Report on Form 20-F for the year ended December 31, 2025. Readers should not place undue reliance on these statements. The Company undertakes no obligation to update them except as required by law. The Company has not entered into definitive AI or HPC hosting agreements.
Investor and Media Contact
Hayden IR
Brian Siegel, 346-396-8696
or
Brett Maas, 646-536-7331
abts@haydenir.com
SOURCE: Abits Group
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