en.Wedoany.com Reported - Blockfusion, a developer of high-performance computing and artificial intelligence infrastructure, recently announced that it has signed a letter of intent with an undisclosed AI client at its data center campus in New York State. Under a non-binding letter of intent, the company plans to provide up to 300MW of critical IT capacity for this client at its Niagara Falls, New York campus.
The lease arrangement will be based on a guaranteed 85MW take-or-pay capacity, delivered in phases. The letter of intent is subject to due diligence and the execution of a final lease agreement. Each phase has an initial fixed lease term of 15 years, with two five-year renewal options. Blockfusion stated that over the initial 15-year period, this 85MW guaranteed capacity is expected to generate approximately $2.8 billion in cumulative lease revenue, with total revenue reaching approximately $5.4 billion if both renewal options are exercised. The company also noted that the letter of intent is not legally binding except for confidentiality, exclusivity, and governing law provisions.
Meanwhile, Blockfusion is advancing plans to expand the total critical IT capacity at its Niagara Falls campus to over 300MW. The company revealed that it has signed an exclusivity agreement with a landowner for additional parcels to support the planned expansion and is in advanced negotiations for a final purchase and sale agreement.
"Expanding the Niagara Falls campus will allow us to secure a site with abundant power resources, comprehensive energy infrastructure, and high strategic significance," said Kant Trivedi, Chief Operating Officer of Blockfusion.
This announcement comes as Blockfusion actively pursues its proposed merger with Blue Acquisition Corp., a publicly traded special purpose acquisition company. The two parties announced the business combination plan in November 2025, and the combined company is expected to operate under the name Blockfusion Digital Infrastructure, Inc. Regarding this merger, Blockfusion and Blue have also entered into a non-binding term sheet for a private placement of convertible preferred notes intended to raise $175 million. The financing is expected to be led by funds managed or advised by Sona Asset Management and will be funded upon completion of the merger. Additionally, the three parties have signed a non-binding term sheet for a non-redemption agreement, under which Sona agrees not to redeem approximately 3.3 million public shares of Blue when shareholders vote on the business combination.
"If these arrangements are completed, they will together provide additional capital at closing, enabling us to execute our development pipeline as planned," said Alex Martini, CEO of Blockfusion. He added, "We are now focused on completing the review process for the S-4 registration statement and finalizing the business combination as efficiently as possible."
Blockfusion is currently operating its data center infrastructure at Niagara Falls, shifting its business focus from cryptocurrency mining to AI and high-performance computing. As previously reported by DCD, the company has approximately 46MW of Tier I capacity at the facility and plans to expand to over 100MW of Tier III capacity for AI computing. The company has also previously explored alternative power options for the site, including signing a memorandum of understanding with Nano Nuclear Energy in 2024 to study the feasibility of deploying microreactor technology at the facility.
