Canadian crypto mining and data center technology company DMG Blockchain Solutions has signed its first colocation contract for servers that can be housed in its prefabricated data center units at Christina Lake, British Columbia.
The contract is valued at approximately $670,000 and spans slightly more than two years, according to the company.
The unnamed tenant is expected to run AI compute workloads and has the option to add secure Sensitive Compartmented Information Facility (SCIF) services for future projects, which provide spy-proof rooms certified by the US government that are resistant to digital eavesdropping.
DMG said the prefabricated data centers, or PDCs, are expected to be ready for service later this calendar year.
“We are pleased to have secured our first contract for servers that can be colocated in our PDCs,” said Sheldon Bennett, CEO of DMG. Bennett added that DMG expects at least part of its customer base to value SCIF-rated capacity, as the company looks to expand secure data center capacity for “sovereign AI compute applications.”
The deal follows DMG’s receipt of 2MW of SCIF-rated prefabricated data center units at Christina Lake in April, part of the company’s push to add AI and secure compute capacity at the British Columbia site.
Located near Grand Forks, the Christina Lake facility launched in 2019 and has historically been operated primarily as a Bitcoin mining site. The facility has access to 75MW of total power, comprising 15MW of firm power and 60MW of non-firm, or curtailable, power.
Earlier this month, DMG signed a non-binding letter of intent to offer 50MW of critical IT load to a single AI colocation tenant at Christina Lake. That proposed deal would have an initial 12-year term, with three five-year renewal options, and would see capacity delivered in phases.
DMG said at the time that Christina Lake would continue operating primarily as a Bitcoin mining facility unless a definitive agreement is signed. If the deal is completed, the company plans to transition the facility toward AI colocation services.
Alongside the colocation announcement, DMG reported preliminary May 2026 operational results. The company mined 22 BTC during the month, compared with 21 BTC in April, while its hashrate fell slightly to 1.52 EHps from 1.54 EHps. DMG ended May with 393 BTC on its balance sheet, up from 389 BTC the previous month.