Executives from Vivopower International (NASDAQ:VVPR) outlined a strategy centered on developing and owning “AI-ready” data center infrastructure in select non-U.S. markets, emphasizing control of low-cost power and grid-connected land as the core competitive advantage.
Speaking at a virtual investor conference, Executive Chairman and CEO Kevin Chin said the London-headquartered company, founded in 2014 and listed on NASDAQ since 2016, is positioning itself as a “bricks-and-mortar” digital infrastructure owner tied to the AI demand cycle. Chin added that VivoPower has been a certified B Corporation since 2018 and that, on a pro forma basis following a recent acquisition in Norway, the company has approximately GBP 31 million of annual revenue and is “profitable on a run rate basis.” He said the Norway acquisition is tracking to contribute “north of GBP 10 million of EBITDA per annum.”
Focus on powered land and long-term leases
Cuppage said VivoPower’s land basis is typically GBP 50,000 to GBP 500,000 per megawatt, while he described private market value for powered land as “greater than GBP 1 million a megawatt” once fully energized. He added that the company expects to rent energized capacity for approximately $1.2 million to $1.5 million per megawatt and targets an unlevered 12% to 16% yield on cost, comparing it to office development yields of roughly 5% to 7%.
Executives also emphasized lease duration. Cuppage said end leases typically run 15 to 25 years, which he said can generate “significant free cash flow” over time.
Capital recycling model aimed at limiting dilution
Chin said the company seeks to avoid shareholder dilution by refinancing stabilized assets to “release the development gains” and recycle capital into future developments. He described a development-to-refinancing cycle of roughly 12 to 18 months and said returns on equity exceed “at least 2x each turn.”
Cuppage expanded on the concept, framing it as a long-term compounding strategy rather than a private equity-style approach of extracting near-term profits. He said that for every GBP 1 of development equity invested over “18 to 24 months,” the company aims to generate GBP 1.50 to GBP 2 of recycled equity for subsequent projects, and “somewhere between GBP 2 to GBP 5” of book value equity gain.
Chin provided an illustrative example of a 100-megawatt build, citing total capex in the range of GBP 800 million to GBP 900 million. He said such projects can be financed with 80% to 90% development debt (senior and mezzanine), with the remainder funded by equity. Chin also cited triple-net lease rates of about $130,000 per kilowatt per month, an unlevered yield of 15% to 16%, and refinancing at a 6% to 6.5% cap rate once stabilized. In that example, he said the development gain could exceed $1 billion and allow the company to pull out about $750 million to reinvest.
Target markets: Nordics, GCC, and selected Asian jurisdictions
Chin said VivoPower is concentrating on jurisdictions where it has “deep sovereign connectivity,” arguing that data center assets can become politically sensitive and require engagement with host nations. The company’s current focus includes:
- Nordics, particularly Norway and Finland
- GCC, including the United Arab Emirates and Saudi Arabia
- Selected markets in Southeast Asia and North Asia
Cuppage said the company targets regions with power input costs below $0.05 per kWh, which he described as roughly one-third of typical U.S. power input costs. He also said that for every one-cent increase in power input cost, an operator’s margin could decline by “somewhere between 5% to 7%.”
Chin argued that expansion of AI capacity is constrained more by the availability of “powered land” with grid connections and access to low-cost renewable power than by access to GPUs. He cited hydropower as particularly attractive due to low intermittency and noted additional constraints such as cooling limitations and the ability to build within an 18-month timeframe.
On regional dynamics, Chin said non-U.S. markets can be less competitive and may provide a neutral platform, particularly in parts of Europe and the GCC. He highlighted the Nordics for lower power costs, faster grid connection timelines relative to some mainstream European markets, and cooler climates that can reduce cooling costs. For the GCC, he pointed to government-driven AI investment and what he described as limited political and societal resistance to data centers.
Long-term growth plan and team
Chin outlined a 10-year plan with three horizons. In phase one, spanning 2026 to 2029, he said the company aims to secure “100% control” of 2 gigawatts of power across its markets and generate over GBP 1 billion of revenue and more than GBP 200 million of annual operating free cash flow from rental income. For later horizons, he described an ambition to exceed 20 gigawatts and generate more than GBP 5 billion of revenue by the third stage.
Chin also discussed the company’s leadership and advisory group, naming Alex Cuppage (Chief Investment Officer), Shane (Chief Real Estate Officer), and Owen Elliott (Head of Development and Delivery). He highlighted advisory and board members including Khadija Mustafa (ex-Microsoft global AI sales head), Philip von Wulffen (who Chin said originated the Finland sites), Rachel (ex-Mubadala, in the Middle East), and Hugh Durrant-Whyte (described as an AI and automation expert and former Chief Scientist for the Ministry of Defence).
Chin said the company has backing from sovereign family offices and AI-focused investors, including investors he associated with Saudi and Emirati royal family offices, as well as Bluesky Capital and a family office tied to a managing partner of an AI venture capital firm.
About Vivopower International (NASDAQ:VVPR)
VivoPower International PLC is a global provider of energy infrastructure and battery solutions, specializing in the design, development and deployment of lithium-ion battery systems and integrated charging networks. Through its Energy Solutions division, the company engineers and manufactures modular energy storage products—ranging from portable power stations to large-scale battery arrays—under its Dragonfly Energy brand. These solutions support a broad array of end markets including remote telecommunications, off-grid mining, defense, and emergency backup power applications.
In parallel, VivoPower’s Infrastructure division focuses on the financing, construction, ownership and operation of clean energy projects and electric vehicle charging networks.
