VivoPower targets at least 1 gigawatt in sovereign AI data centre partnership
Key Facts
VivoPower announced on 21 October 2026 that it had signed definitive heads of terms with Open Innovation AI, targeting the development of at least 1 gigawatt of sovereign AI data centre capacity over the next 3 years. The company said in its statement that the agreement establishes a framework for cooperation between the parties on developing these centres. The companies estimate the opportunity in Europe alone at more than 40 gigawatts, according to the statement published via GlobeNewswire. VivoPower described the partnership's capacity target as "at least 1 gigawatt over the next three years". This capacity represents a development target under the cooperation framework, as the heads of terms alone do not commit the parties to executing a specific project.
Open Innovation AI links the concept of sovereign infrastructure to the integration of infrastructure, the operating environment, AI operations, applications and security into a single system, according to an explanation published by the company. VivoPower already has an operational data centre in Mo i Rana in northern Norway, which it completed the acquisition of on 21 April 2026. The company described the existing facility as a 41.5-megawatt centre in a statement concerning the selection of a preferred tenant for AI uses. It said the facility runs on 100% renewable hydropower. It added that electricity costs less than $0.05 per kilowatt-hour, among the specifications of the facility it plans to convert for these uses.
In an update on the Norwegian project, VivoPower announced that construction mobilisation had begun to convert the first phase into a 40-megawatt AI data centre. The company also enrolled 30 megawatts of the existing facility in electricity grid balancing services, according to the project progress statement. The conversion design includes plans to capture waste heat generated by cooling systems. The company intends to reuse this heat for productive purposes as part of the centre's proposed design. It clarified, however, that implementation of this aspect of the project remains subject to technical and commercial feasibility.
On financing, VivoPower previously announced that it had secured a $50 million private investment in public equity, led by Blue Sky Capital. The financing includes preferred shares convertible into ordinary shares at a conversion price of $7.50 per share, according to the company's statement. The preferred shares carry a 6% annual payment-in-kind return under the terms of the round. VivoPower earmarked the net proceeds for the operational conversion of the Mo i Rana centre to AI uses and for reducing the company's debt. In a separate announcement preceding the partnership, it said it had fully extinguished $28.8 million in shareholder loan principal owed to founding shareholder AWN Holdings.
Outside the Nordic region, VivoPower's portfolio and project pipeline include assets and development opportunities exceeding 2.2 gigawatts, according to the company's announcement on establishing a standalone platform. These assets and opportunities are concentrated primarily in the UAE, Oman, Saudi Arabia, Malaysia and the Philippines. VivoPower plans to base the standalone platform in Singapore, with a primary listing on the London Stock Exchange. The plan also includes a secondary listing on the Abu Dhabi Securities Exchange, linking the structuring of its business outside the Nordic region to the Gulf market. The restructuring aims to shift construction financing in these markets to an independently funded entity, with VivoPower retaining what it described as "effective control".
Under the partnership framework announced on 21 October 2026, VivoPower and Open Innovation AI intend to enter into separate agreements for each project before proceeding with implementation. Project development remains conditional on the availability of suitable sites, according to the agreement statement. It also requires securing power and financing, alongside completing definitive documentation for individual projects. In Mo i Rana, VivoPower said it expects to award and announce the mechanical and electrical fit-out contract soon. The contract award follows a review of bids submitted to fit out the Norwegian facility, according to the company.