Tlou Energy (ASX:TOU) signed a nonbinding heads of agreement with a data center development firm to set up high-density computational facilities at its Lesedi site in Botswana, according to a Wednesday Australian bourse filing.
The facility will run power-intensive computer processing equipment using electricity generated from gas produced by the firm, the filing said.
A proof-of-concept trial was completed with gas provided by Tlou from its Lesedi 4 gas production pod to generate electricity, per the filing.
It is in talks with the data center firm regarding an expanded program, including funding provided by the latter. The funding will be used for additional gas wells at Lesedi, which could scale up gas production for the facility and Tlou's 10-megawatt gas-to-power project.
The firm's shares rose past 8% in recent trading on Wednesday.
Price (AUD): $0.01, Change: $+0.0010, Percent Change: +7.69%
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