Jet.AI Partners with Consensus Core for AI Data Center Venture
Jet.AI and Consensus Core Unveil Ambitious AI Data Center Plans
In an exciting development for the artificial intelligence landscape, Jet.AI Inc. (Nasdaq: JTAI) has taken a significant step forward by signing a Letter of Intent with Consensus Core Technologies Inc., a leader in high-performance GPU infrastructure. This partnership aims to launch a formidable joint venture centered on establishing two expansive AI data center campuses across Canada, poised to revolutionize the AI compute market.
The Vision Behind the Joint Venture
The joint venture, referred to as the 'JV', focuses on the development of two hyperscale data centers, one strategically located in the Midwest and the other in Maritime Canada. With a combined power capacity of approximately 1.5 gigawatts, these centers are set to become pivotal players in responding to the surging demand for advanced AI solutions.
Each megawatt of operational capacity is projected to generate around $1 million in stabilized annual net operating income (NOI). Currently, the Midwestern campus operates with 2 megawatts and is on track to expand to 100 megawatts within the next year. When occupancy rates stabilize, the new capacity could yield around $100 million in additional NOI, establishing a robust revenue stream for the joint venture.
Investment Strategy and Future Growth
Jet.AI plans to contribute US $2 million upon the initial closing, which is aimed for the second quarter of 2025. This initial commitment will secure a 20% general partner interest in both projects and an eight percent equity stake in the holding company of the joint venture. Following a well-defined milestone, Jet.AI has the option to further increase its total investment to US $20 million, raising its ownership share in the JV to 19.9%. The partners have agreed to a 60-day exclusivity period to finalize the necessary agreements, an extension of 30 days may also be considered under specific circumstances.
The Unique Attributes of the Projects
Both projects come equipped with significant infrastructure advantages that are crucial in today’s competitive environment for AI facilities. The Midwestern Project features a robust power supply with a 115 kV transmission line dedicated to the site, which will facilitate immediate scalability and expansions. Strategically located next to a major natural gas pipeline, this project is well-positioned for on-site power generation.
Similarly, the Maritime Project benefits from superior access to high-voltage power and additional hydroelectric sources. With 40 megawatts of available substation capacity and plans to swiftly scale to 100 megawatts, this location holds future potential for more than 1 gigawatt as expansion progresses. Furthermore, its adjacency to a well-established energy hub with access to vast natural gas resources underlines its strategic importance.
Leadership Insights on the Joint Venture
Wayne Lloyd, CEO of Consensus Core, emphasized the significance of reliable energy solutions for AI development. He mentioned, "Grid power, along with natural gas electricity generation and the expansion of green energy, effectively addresses the prevalent power shortages faced by many facilities today. Our partnership with Jet.AI harnesses sites deemed increasingly challenging to secure, demonstrating our commitment to sustainable growth in this sector."
About Consensus Core
Consensus Core boasts a seasoned team adept at executing large-scale infrastructure developments, creating specific sites tailored for extensive AI demands. In collaboration with NVIDIA, they have shown their capability to provide critical infrastructure for AI workloads. Lloyd remarked, "Data centers and dependable power are fundamental to AI infrastructure. This union with Jet.AI equips us with diversified strengths, facilitating rapid client deployment of AI innovations."
A Glimpse into Jet.AI
Founded in 2018 and based in Las Vegas, NV, Jet.AI is transitioning from a dual-segment operation focusing on software and aviation to a dedicated AI data center enterprise. With an adept leadership team experienced in AI and infrastructure, Jet.AI is committed to crafting a scalable architecture to meet the growing computational requirements of AI technologies.
Frequently Asked Questions
What is the partnership between Jet.AI and Consensus Core about?
The partnership is a joint venture to develop two AI data center campuses in Canada, focusing on fulfilling the increasing demand for AI compute capabilities.
How much power capacity will the new data centers have?
The joint venture centers are designed to deliver approximately 1.5 gigawatts of power capacity, supporting extensive AI processes.
What is Jet.AI's investment strategy for the joint venture?
Jet.AI intends to invest US $2 million initially, with the opportunity to increase this to US $20 million, securing equity and partnership stakes in the JV.
What advantages do these projects have?
The data centers benefit from unique infrastructure features like access to reliable power sources, strategic location near major energy pipelines, and capacity for significant future expansion.
What is the vision of Jet.AI?
Jet.AI aims to establish itself as a leading AI data center company, leveraging its expertise to support the increasing computational demands in the artificial intelligence sector.
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