Our 2023 Financial Picture
Today’s release of Northern Data’s audited 2023 financial results is a big milestone on our journey to meet the surging cross-industry demand for High-Performance Computing (HPC). In this post, I want to talk about how these results reflect both our accomplishments to date and our continued transformation to become a leading HPC solutions provider.
Group revenue for 2023 came in above market forecasts at EUR77.5 million. Adjusted EBITDA was EUR-5.5 million, in line with our forecasts and reflective of the investments we made during the year to continue building the team and structure that will set us up for the future (more on that below). We also enjoy a solid capital position with significant cash on hand, and during 2023 we secured USD1 billion in debt and equity funding to support the realization of our roadmap.
“2023 was an inflection point for Northern Data Group. We firmly positioned ourselves to become a leader in HPC, building the much-needed team and structure required to power growing demand for HPC and the Generative AI boom.
In 2024 we are investing strategically across our business to build the foundation required to provide cutting-edge organizations with HPC solutions that optimize performance. And we continue to build on and expand our strategic partnerships. We are well capitalized with significant cash on hand, and we expect to triple our revenues this year as we continue to scale.”
Investing in the Future
In late 2023, we laid out our investment strategy that will position Northern Data to successfully capture the growth taking place in our industry. Under our Group structure, we are able to bring a new level of focus to drive HPC growth and serve the GenAI boom, in each respective market. We announced significant investments in the business that demonstrate the scale of our vision, and we expect these investments to help substantially increase our revenue for 2024 and beyond.
Here are some of the highlights of that investment strategy:
Cloud - EUR730 million investment to secure the largest cluster of NVIDIA H100 Tensor Core GPUs in Europe. We began the initial deployments at the end of 2023, and are continuing to scale our Generative AI cloud through 2024 so that we can offer customers high-speed, low latency and data-sovereign computing that is 100 percent carbon neutral.
Data Centers - EUR110 million investment to grow its physical and operational data center footprint across the U.S. and Europe, advancing our goal of building the most efficient, future-ready network of HPC colocation capacity on the market.
Mining – EUR140 million investment into Peak Mining, which is already being deployed at its next-generation mining hardware and facilities.
Looking Ahead
2024 is shaping up to be a critical year for Northern Data Group. The decisive actions we announced at the end of 2023 are already beginning to bear fruit – this is why we’re expecting 2024 revenue to triple with a forecasted range of EUR200 million to EUR240 million.
2024 will be the first year where our cloud platform, through the advancements we are making in our GPU based infrastructure, will deliver significant Group revenue. We recently announced a partnership with VAST Data to bring AI-as-a-Service to Europe supported by our NVIDIA GPU network. And last month, we launched our AI Accelerator to offer startups complementary access to our servers to help speed the next generation of AI-enabled innovation.
In 2024, we expect to see expansion in our Data Center portfolio. We have already broken ground on our 41,000 square foot data center in Pittsburgh, which is being upgraded with the latest technology to power our HPC needs..
Additionally, in May we purchased a 300MW data center location in Corpus Christi, Texas, expanding on the adjacent 300MW site we purchased at the end of 2023, to support expansion of our blockchain ecosystem.
In 2025, Group revenues are expected to reach between EUR520 and EUR570 million.
It’s been an exciting year across Northern Data Group, and we look forward to keeping you apprised of our progress. The future of HPC and GenAI, is bright, and we’re going to be on the front lines of turning that future into a reality.
