BluSky AI to lease Oklahoma land for modular data centre push

BluSky AI has signed a non-binding letter of intent to lease approximately five acres of land in Mulhall, Oklahoma for the next phase of its modular data centre deployment.

The site, defined by west and south boundaries and subject to final surveying, is intended to provide scalable computing capacity in a region well known for energy availability. According to details in the letter, the preliminary agreement outlines a long-term lease structure that enables BluSky AI to expand its AI infrastructure as demand increases.

Lease terms

The agreement specifies an initial monthly base rent of USD $4,000, escalating in line with installed power capacity. For active modules, BluSky AI will pay USD $2,500 per megawatt per month for the first 16.3 megawatts, and USD $1,000 per megawatt per month for additional capacity secured by the lessor. For example, at an installed and used capacity of 11 megawatts, the total monthly rent would amount to USD $30,000, which includes base and usage-linked rent adjustments.

The lease is structured for a minimum term of 10 years, with two subsequent options to extend the lease by five years each. BluSky AI has a 150-day inspection period, which will be used to undertake due diligence on the site. Should module installation not commence within 15 months of the execution of the lease, either party will have the right to cancel the agreement without further obligations.

Under the letter of intent, BluSky AI will be responsible for all site modifications, including engineering work, permitting, and infrastructure upgrades to support its modular deployment goals.

Corporate perspective

BluSky AI sees this initiative as a key step in its ongoing strategy for geographical and operational expansion across western US energy corridors, targeting growing demand for high-density computational resources.

This LOI marks another milestone in our mission to democratize access to AI compute. Mulhall, Oklahoma offers the right mix of energy availability, community partnership, and strategic location to support our modular infrastructure vision. We're grateful to Don and Patsy Diehl for their collaboration and look forward to finalizing the lease agreement.

The project is aimed at enabling clients to access expandable GPU clusters for various applications, reflecting BluSky AI's approach to providing a foundational layer for artificial intelligence workloads.

Infrastructure and operations

The proposed site is aligned with BluSky AI's broader ambition to deploy modular AI infrastructure in energy-rich locations, creating what it refers to as SkyMod data centres. These units are engineered for speed of deployment and energy efficiency, facilitating the prompt and flexible operation of AI factories to support a range of machine learning workloads. As part of the lease responsibilities, BluSky AI will carry out all necessary upgrades and installations on the leased land to enable the deployment of these modular facilities.

BluSky AI's model is structured to address the increasing need for large-scale compute power by providing infrastructure that serves as a backbone for AI development and deployment across different industry segments. The company's SkyMod data centres are described as scalable and suited to a mix of clients, encompassing start-ups, enterprise customers, and academic partners.

Through this letter of intent, BluSky AI is seeking to position itself among infrastructure providers supporting artificial intelligence advancement by giving organisations access to on-demand, scalable GPU resources in strategic locations.

Execution process

The parties will move to finalise the definitive lease agreement after surveys and further inspections. The letter grants flexibility for both BluSky AI and the lessor to cancel should the deployment of modules not occur within the stipulated 15-month window. Meanwhile, all improvements and preparation of the land will be overseen by BluSky AI as part of its obligations under the lease.

The structure of the agreement, with rent adjustments linked to power capacity and a tiered payment system, is intended to reflect the variability of modular compute infrastructure projects and their dependence on both site readiness and installed hardware.

BluSky AI's CEO emphasised the collaborative nature of the deal, highlighting the site's suitability for the company's infrastructure targets and expressing appreciation for local support as the company moves towards execution and deployment.