GMC collaborates with Canadian tech corp

Bhutan’s Gelephu Mindfulness City Authority has signed a letter of intent with small Canadian digital infrastructure company SATO Technology Corps to build a hydro‑powered AI data‑center campus in the country’s southern special administrative region. The June 20 agreement reserves 100 MW of firm power, starting with a 5 MW phase and potentially expanding to 500 MW.

The company says the site—located directly on the Bhutan‑India border—will serve AI demand from India and South Asia, offering lower latency and avoiding India’s power‑supply constraints.

The LOI outlines steps toward final contracts covering power, site development, financing and commercial offtake, which both sides aim to finalize within 12 months. Completion depends on financing, due diligence, board approval and binding agreements.

SATO’s co‑founder Mathieu Nouzareth said Bhutan’s clean hydropower and “forward‑looking governance” make it an ideal location. Gelephu Mindfulness City’s leadership described the project as aligned with its goal of attracting sustainable digital infrastructure.

The planned 100 MW far exceeds SATO’s current 20 MW hydro facility in Québec, which mines bitcoin and is being converted for AI compute. The company’s Q1 2026 results showed declining revenue, a net loss, and ongoing financing challenges.

Bhutan, a carbon‑negative nation powered entirely by renewables, has previously hosted high‑density compute projects, including Bitdeer’s 2023 carbon‑free mining initiative. Gelephu Mindfulness City is a flagship development backed by King Jigme Khesar Namgyel Wangchuck to attract investment and digital infrastructure.

SATO will update shareholders if definitive agreements are reached or if the LOI is terminated.