TL;DR
- Northern Data Group reported revenues of EUR 77.5 million in 2023, exceeding market expectations.
- The company expects to triple its revenues by 2024, reaching between EUR 200 million and EUR 240 million.
- It is focusing on High Performance Computing (HPC) solutions and has secured USD 1 billion in funding for its projects.
Northern Data Group has released its audited financial information for 2023, highlighting revenue of EUR 77.5 million, exceeding market projections of between EUR 65 and 75 million.
Despite this improvement, revenues reflect a significant drop compared to the EUR 193.3 million obtained in 2022.
The company, which is in a transition towards being a leading provider of High Performance Computing (HPC) solutions, has reported an adjusted EBITDA of EUR -5.5 million, highlighting the need to continue investing in its infrastructure and equipment.
Over the past year, Northern Data has secured $1 billion in debt and equity financing to meet growing demand in HPC and Generative AI.
Northern Data‘s strategy is focused on making substantial investments to expand its operations by 2024.
The company has outlined an investment plan that includes EUR 730 million to acquire the largest NVIDIA H100 GPU cluster in Europe, which will strengthen its capabilities in the cloud market.
Additionally, EUR 110 million will be allocated to increase its physical presence in data centers in both the United States and Europe, and EUR 140 million will be invested in Peak Mining to implement next-generation mining hardware.
These actions seek to triple revenues by 2024, reaching between EUR 200 million and EUR 240 million, and project even more significant growth by 2025, with estimated revenues between EUR 520 million and EUR 570 million.
The vision of Aroosh Thillainathan, founder and CEO of Northern Data, is clear: 2023 was a turning point year, and the company is positioning itself to lead the HPC sector.
This strategic approach includes building a robust team and organizational structure that enables it to respond to growing market demand.
Promising Future and Challenges to Overcome for Northern Data
As the company continues to expand its strategic partnerships and strengthen its capital, growth expectations become more encouraging.
Despite challenges such as operating losses and cash flow pressure, Northern Data remains optimistic about its future.
The solid financing it has secured provides it with a solid foundation to advance its ambitious expansion plans.
With a strategy focused on innovation and diversification, the company is well positioned to take advantage of opportunities in the growing field of artificial intelligence and high-performance computing solutions.
