O'Leary Digital Ltd. is evaluating the possibility of accessing public markets to raise funds for proposed data center developments in Utah and in Alberta, Canada, Chief Executive Officer Paul Palandjian said in remarks reported by Bloomberg.
The private company, which counts six backers among its investors including Kevin O'Leary of ABC's Shark Tank, faces extensive capital requirements to support its planned U.S. and Canadian facilities.
Discussions with potential tenants
Palandjian said the firm has engaged hyperscalers to gauge their interest in colocating equipment at the new sites. He described a signed lease as the critical demand signal that would enable the company to tap the capital markets for construction financing. "In an ideal world, we would have a signed lease by the end of this year," Palandjian said in an interview near the location of a proposed 7.5-gigawatt data center in northwestern Alberta. "That would be the demand signal that would unlock the capital markets to be able to build."
Conditions for a public offering
Palandjian made clear that O'Leary Digital would not pursue a public offering absent a stable revenue foundation. The company is seeking a "contracted, recurring revenue flow in place and a fully financed phase one - at a minimum," he said, indicating that committed tenant revenue and initial project financing are prerequisites before taking the public step.
Market context
The company's approach aligns with a broader trend of infrastructure developers connected to artificial intelligence and cloud computing seeking capital through public and debt markets. The move into bond issuance by firms building AI-related data centers, and investor appetite evidenced around AI-linked offerings such as large technology IPOs, are shaping the financing environment Palandjian referenced as relevant to his firm's strategy.
What remains uncertain
Key variables include whether hyperscalers will commit to leases on the timelines discussed and whether phase one financing can be secured to meet the company's conditions for a public listing. Until those elements are in place, Palandjian indicated the firm will refrain from accessing public equity markets.
This report presents the company's stated plans and conditions without forecasting outcomes beyond the information provided by O'Leary Digital's leadership.