Company Reevaluates Outlook Due to Industry Dynamics
Germany’s Northern Data, a key player in
AI cloud and high-performance computing (HPC), announced it has withdrawn its full-year 2025 financial forecast. This decision comes as the company undertakes an evaluation of potential strategic transactions and responds to changing market pricing dynamics for graphics processing units (GPUs)[1][4][6].
GPU Utilization and Technology Upgrades Drive Operations
- Northern Data stated that improvements in technology after a second-quarter upgrade have led to increased GPU capacity utilization, gaining significant traction with current and new customers[1][4].
- Over 15,000 GPUs from its estate of 22,000 H100 and H200 units are currently allocated to clients, contributing to an expected monthly revenue run rate of approximately EUR 10 million to EUR 15 million in the fourth quarter of 2025[4].
- In March, the company's Taiga cloud business began infrastructure upgrades, enabling broader access to its GPU assets and attracting a more diverse customer base[1].
Strategic Interests and Market Transactions
- In August, video platform Rumble made an acquisition offer for Northern Data. This deal, valued at roughly $1.17 billion, would give Rumble control of Northern Data’s Taiga cloud business and its large-scale data center arm, Ardent[1].
Future Announcements and Revenue Guidance
Northern Data has indicated it will soon release further updates on third-quarter operational and preliminary revenue performance in light of its ongoing evaluations[4][6]. The withdrawal of the 2025 outlook is partially offset by stronger customer demand following its technology upgrade and improved operational performance[4].
For more information on Northern Data and its developments, visit the company’s official site at
northerndata.de.
