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Microcap KALiNA Power (ASX:KPO) has inked an MOU with a “substantial, well capitalised US-based data centre developer” to look at using natural gas – and carbon capture – to power data centres.
The carbon capture element taps into a current concern growing among industry-watchers. For our current “AI” models to work, they require huge amounts of electricity running through power-hungry hardware.
Traders familiar with the more esoteric end of Australia’s energy explorers may recognise more than one company has previously used gas-fired power to sustain crypto mining operations, another power-intensive way to eke value out of a computer.
AI data centres are the same in that regard.
The remit of KALiNA’s MOU is ultimately to develop AI-facing data centres with natural gas generation facilities on-site through Alberta. The Canadian jurisdiction has welcomed data centre developers to join its economy, encouraging players to find a generation partner to work with.
Ambitiously, KALiNA also wants to incorporate a working carbon capture element in its AI data centre plans, which would allow the company to boast ESG credentials. Demand for power at the data centre level is a major factor rapidly driving up humanity’s electricity consumption to record demand.
KPO is hopeful it can be that partner for at least one company and wants to sign a project development agreement (PDA) down the line. That would lock in timelines and non dilutive funding deals, the company said on Monday.
“The proposed influx of data centres into Alberta has been described as a $75-$100-billion opportunity for Alberta,” KALiNA MD Ross MacLachlan said.
“Recognizing the benefits of this and that the biggest bottleneck for data centre developers is access to electricity, Alberta’s Premier recently encouraged [business collaboration].”
KPO last traded at 0.5cps.
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