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VANCOUVER, British Columbia, Sept. 14, 2026 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated data center and digital assets technology company, today provides an update on the conversion of its Christina Lake, British Columbia data center facility to offer artificial intelligence (AI) colocation services. DMG continues to work towards a definitive agreement on its letter of intent for 50 megawatts of critical IT load AI colocation services. DMG is making progress on the execution portion of the project, which is integral to confirming the construction timeline and operational commitment that is part of the definitive agreement. If and when the definitive agreement is executed in connection with the proposed AI colocation services transaction, DMG will issue a more comprehensive news release disclosing further details of the proposed transaction.
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Current update highlights are:
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- Power: seventy-five megawatts confirmed – DMG has completed the contract for an additional 10 megawatts of non-firm power. In total, DMG has 60 megawatts of non-firm power along with 15 megawatts of firm power, totaling 75 megawatts. Our Christina Lake substation, which is DMG-owned, already supports the full 75 megawatt load. DMG is now investigating twinning the main transformer for future expansion and redundancy.
- Potential for greater than 50 megawatts of critical IT load – we believe we may be able to support greater than 50 megawatts, as our 75 megawatts of total power allows for a worst case power usage effectiveness (PUE) of 1.5. Christina Lake weather conditions, a new generation of servers and the ability to leverage alternative energy sources for chillers all potentially allow us to raise the amount of critical IT load from 50 megawatts.
- Future: Up to 150 megawatts of firm power – previously, DMG disclosed it has submitted an application with our utility for 150 megawatts of firm power, which is likely to involve a significant capital expense. Subsequent to executing our definitive agreement, we expect to move this process forward. We may be able to combine this firm power with our 60 megawatts of non-firm power depending on our utility’s transmission capacity.
- Site Progress : DMG has accelerated its efforts on design-build and contractors.
- General contractor (GC) – we plan to utilize a GC and are in the latter stages of selecting one with data center experience.
- Design engineering
firms – we plan to utilize the electrical engineering firm that we have worked with for the past decade. We have already selected an architectural firm, which has supported us with the permit for our building extension. For mechanical engineering, we are currently deciding among several candidates, all of which have deep cooling systems knowledge with a strong base in British Columbia. - Tradesmen – the British Columbia lower interior region where we are located has a good supply of tradesmen. We have secured a few electrical firms as a start, and we know we will need more. In addition, we will look to balance the amount of labor that is incorporated into prefabbed assemblies versus building on-site so as to optimize lead-time, assembly time and cost.
- Connectivity – we have contracted with two telecom providers for two diverse paths of 100 Gbps fiber to our facility, and we are evaluating a possible third line. These lines may be upgraded to 400 Gbps in the future. Given the remoteness of our site, connectivity has been one of our bigger long lead-time concerns and is an area where we have committed material capital expenditures ahead of a definitive agreement.
- Site Location: DMG continues working with the local and regional authorities.
- Permitting – DMG has applied for a permit to construct an addition to our current building, which would approximately double its capacity to support as much as 60 megawatts of critical IT load.
- Zoning – For many years, DMG has operated in an approved data center-zoned location.
- Community relations – while we have encountered opposition from a few members of the local community, who were also opposed to DMG in the past as a crypto miner, we have been open and cooperative. We have emphasized that our project will not negatively impact utility rates, while using less water and generating less noise than Bitcoin mining.
- Timeline: Goal to have tenant servers operating by the end of the year – this was always communicated on a commercially reasonable efforts basis and was predicated in part on quickly reaching a definitive agreement. As we are now in September, we are realistically looking towards a 2027 energization schedule for tenant servers.
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In terms of financing this project, DMG is exploring through discussions with multiple financial institutions, a range of instruments, including rated bonds, lines of credit and equity/convertible debt. Our goal is to optimize for cost of capital, flexibility and speed while minimizing dilution. We will update the market if and when terms are finalized.
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DMG’s CEO, Sheldon Bennett, commented, “We are pleased with our continued progress towards our goal of converting our Christina Lake facility to an AI data center to offer colocation services to a long-term tenant. Concurrently, we are laying the track for future sites, as we believe DMG can become a leader in Canada for offering AI data center colocation services, given our experience working with utilities and connecting to large amounts of power as well as our early position to build a major AI data center site.”
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There is no assurance that the AI colocation services definitive agreement will be successfully negotiated or executed by the parties. In addition, the conversion of the Christina Lake, British Columbia data center facility to offer artificial intelligence (AI) colocation services is subject to several conditions, including but not limited to, financing, permitting and entering into agreements with counterparties that are necessary to complete the conversion of the Bitcoin data center to an AI colocation data center.