Northern Data’s Acquisition of Hydro66’s Data Centre Facility in Boden

Gleiss Lutz, Gernandt & Danielsson, Burges Salmon and WeirFoulds advised Northern Data AG on the deal. Oppenhoff advised the Canadian Hydro66 Group.

Northern Data AG acquired Hydro66’s renewable-powered data center operating in the “Node Pole” region of Northern Sweden to meet massive customer demand. The site currently consists of six data center halls on an area of 2.5 hectares and will now be further expanded by Northern Data following the acquisition. Hydro66 is selling the facility for €4m in cash and €21m in shares of Northern Data.

In addition to the ideal HPC temperature conditions, the region in Northern Sweden is characterized by high connectivity and very cheap regional surplus electricity from renewable energy sources. The electricity for Northern Data’s new site is 100 percent sourced from renewable energy, generated by hydropower plants in the region. The local hydropower plants have a capacity of about 4.5 gigawatts (GW), producing about 14 terawatt hours (TWh) per year, which is available to Northern Data at the lowest electricity prices in the EU.

The Hydro66 Group specialises in high performance computing (“HPC”) hosting. The “green” data centre now being sold was completed in 2019 and is located near the Arctic Circle. Due to the low average annual temperature, the HPC hardware is supplied with a passive energy-saving cooling system. The electricity is generated entirely from renewable energy from hydropower plants in the region.

Northern Data AG develops and operates global infrastructure solutions in the field of High Performance Computing (HPC). With its customized solutions, the company provides the infrastructure for diverse HPC applications in areas such as bitcoin mining, artificial intelligence, blockchain, big data analytics, IoT or rendering. The internationally active company is now a leading provider in the field of HPC solutions worldwide. Northern Data offers its HPC solutions both in large, stationary data centers and in mobile high-tech data centers that can be set up at any location worldwide. In doing so, the company combines self-developed software and hardware with intelligent concepts for a sustainable energy supply. Northern Data currently employs around 150 people.

The Gleiss Lutz team comprised Dr. Andreas Löhdefink (Picture), Dr. Stephan Aubel, Dr. Cornelia Topf, Dr. Christoph Auchter, Kevin Löffler, Dr. Christina Aye, Dr. Stefan Mayer, Dr. Leonhard Kornwachs, Dr. Alexander Molle, Dr. Felix Müller, Dr. Jacob von Andreae and Aylin Hoffs.

The Gernandt & Danielsson team was led by Pär Johansson and Andreas Lexhag.

The Burges Salmon team was led by Richard Spink and Rebecca Brown.

The WeirFoulds team was headed by Ryan Filson.

The Oppenhoff team, led by Christof Gaudig, included Dr. Andreas Krebs, Dr. Gunnar Knorr and Dr. Wolfgang Kotzur. Dr. Wolfgang Kotzur, who is also admitted as a solicitor, advised on the English part of the transaction.

Involved fees earner: Rebecca Brown – Burges Salmon; Richard Spink – Burges Salmon; Pär Johansson – Gernandt & Danielsson Advokatbyrå KB; Andreas Lexhag – Gernandt & Danielsson Advokatbyrå KB; Stephan Aubel – Gleiss Lutz; Christoph Auchter – Gleiss Lutz; Christina Aye – Gleiss Lutz; Aylin Hoffs – Gleiss Lutz; Leonhard Kornwachs – Gleiss Lutz; Kevin Löffler – Gleiss Lutz; Andreas Löhdefink – Gleiss Lutz; Stefan Mayer – Gleiss Lutz; Alexander Molle – Gleiss Lutz; Felix Müller – Gleiss Lutz; Cornelia Topf – Gleiss Lutz; Jacob von Andreae – Gleiss Lutz; Christof Gaudig – Oppenhoff; Gunnar Knorr – Oppenhoff; Wolfgang Kotzur – Oppenhoff; Andreas Krebs – Oppenhoff; Ryan Filson – WeirFoulds;

Law Firms: Burges Salmon; Gernandt & Danielsson Advokatbyrå KB; Gleiss Lutz; Oppenhoff; WeirFoulds;

Clients: Hydro66; Northern Data AG;

Author: Federica Tiefenthaler