Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) has signed an agreement with two partners in the United Arab Emirates to look at forming a joint venture focused on digital infrastructure and Bitcoin mining operations
Under the non-binding memorandum of understanding, the AIM-listed company will lead the joint venture's overall strategy, project development, and energy optimisation, as well as capital structuring through equity and debt markets.
One of the proposed partners is expected to take responsibility for technical operations and hosting performance, while the other would support client acquisition and marketing of infrastructure capacity.
Active Energy said the joint venture is aimed at scaling its UAE digital infrastructure operations in phases, in line with its medium-term capacity targets.
"The proposed JV is intended to support the efficient and phased expansion of Active Energy's UAE digital infrastructure platform in line with the group's previously stated medium-term capacity objectives," the company said.
It added that the JV would allow it to grow without materially increasing central costs, which it said was consistent with its broader business model of "forming partnerships and joint ventures with strategically aligned companies to deliver growth in a capital-efficient manner, sharing execution responsibilities and potential upside, while preserving balance sheet flexibility".
The MOU remains non-binding, and definitive agreements have not yet been finalised.
The proposed UAE venture follows Active Energy's moves in the past year into building energy-efficient data centres for high-performance computing, including artificial intelligence hosting and crypto mining, with a first phase nearing completion.
During the year, it established a development pipeline of up to 300MW across multiple sites, taking advantage of low-cost power, surplus grid capacity and a supportive regulatory backdrop.
Last week it also announced its first formal steps into Saudi Arabia, which was confirmed last week with the granting an Entrepreneur Licence by the Kingdom’s Ministry of Investment, giving the AIM-listed group a legal base to operate and expand in one of the world’s fastest-growing energy markets.
As summarised in an update earlier this month, Active Energy has positioned itself in the past year for sustainable growth with a four-pillar approach across renewable energy, clean fuels, bitcoin mining and a digital asset treasury strategy.