SATO (TSXV: SATO) signed a letter of intent with Bhutan's Gelephu Mindfulness City Authority for a hydro-powered AI data center campus in the kingdom's southern special administrative region, according to a company release. Under the June 20 LOI, 100 MW of firm power is reserved for the project, with an initial 5 MW development phase and a pathway to expand to 500 MW.
The company said the campus would serve AI compute demand originating in India and South Asia. SATO framed the site's location directly across the Bhutan-India border as a low-latency advantage, noting that Indian data center expansion faces power availability constraints and multi-year grid timelines.
The LOI sets out a structure for definitive agreements on power, site development, project structure, financing and commercial offtake. SATO said the parties expect to finalize those agreements within 12 months. The transaction's completion still hinges on financing, board approval, due diligence and the signing of binding contracts.
AI and Bitcoin's daily show: Subscribe to the Blockspace Podcast here, on Apple, Spotify, or anywhere you listen to podcasts.
"This project is the product of a deliberate effort to find the next jurisdiction where clean, sovereign power and serious AI ambition meet," said Mathieu Nouzareth, co-founder and director of SATO, the project's originator and lead. "Bhutan offers a rare combination of hydroelectric resources and forward-looking governance."
The company said the campus would serve AI compute demand originating in India and South Asia. SATO framed the site's location directly across the Bhutan-India border as a low-latency advantage, noting that Indian data center expansion faces power availability constraints and multi-year grid timelines.
The LOI sets out a structure for definitive agreements on power, site development, project structure, financing and commercial offtake. SATO said the parties expect to finalize those agreements within 12 months. The transaction's completion still hinges on financing, board approval, due diligence and the signing of binding contracts.
AI and Bitcoin's daily show: Subscribe to the Blockspace Podcast here, on Apple, Spotify, or anywhere you listen to podcasts.
"This project is the product of a deliberate effort to find the next jurisdiction where clean, sovereign power and serious AI ambition meet," said Mathieu Nouzareth, co-founder and director of SATO, the project's originator and lead. "Bhutan offers a rare combination of hydroelectric resources and forward-looking governance."
1 month ago
