WhiteFiber (NASDAQ: WYFI) agreed Monday to pay $60 million in cash for two industrial properties in Yadkin County, North Carolina. Subject to customary conditions, the acquisition should close during the fourth quarter. The planned NC-2 and NC-3 data-center campuses would provide at least 60 MW of combined initial gross utility capacity.
WhiteFiber estimates the properties could eventually support approximately 200 gross MW, with initial ready-for-service capacity targeted for the third quarter of 2027. The sites are about 55 miles from WhiteFiber's NC-1 campus in Madison. WhiteFiber said their existing industrial infrastructure and surrounding land fit its retrofit-first strategy, which is intended to reduce development time and improve capital efficiency compared with greenfield construction.
Stay ahead of AI infrastructure deals. Get Blockspace in your inbox. WhiteFiber said discussions with prospective customers are advanced and that it has received non-binding letters of intent carrying investment-grade credit support.
The prospective customers were not identified, and the letters do not represent binding revenue contracts. "NC-2 and NC-3 would expand our North Carolina footprint near NC-1, allowing us to build on the capabilities and relationships we have established in the region," WhiteFiber CEO Sam Tabar said. The disclosed capacity is gross utility capacity rather than critical IT load.
WhiteFiber did not provide expected conversion costs, development spending, rack density or a breakdown of the initial capacity between NC-2 and NC-3. WhiteFiber's nearby NC-1 campus began billing customers during the second quarter and is expected to reach billing at the full run rate for 40 MW of contracted IT load in August. As covered in WhiteFiber's second-quarter results, Nscale signed a 10-year colocation agreement covering that deployment, with approximately $865 million of contracted revenue and 3% annual escalators.
WhiteFiber reported $60.4 million of cash and restricted cash as of June 30. After the quarter, it expanded its RBC credit arrangement to C$115 million, or approximately $82.8 million, with a conditional C$25 million accordion. WhiteFiber had drawn C$36.8 million, or about $26.5 million, by July 15, but did not disclose how it would fund the property purchase beyond specifying cash consideration.
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