Mitesco, Inc. announced that its Centcore data center division is evaluating multiple locations across Tennessee as part of a strategic expansion initiative aimed at accelerating revenue growth, improving operating margins, and positioning it as a national provider. The company's assessment highlights Tennessee's exceptionally competitive power pricing, often among the lowest industrial electricity rates in the United States, driven largely by the stability and scale of the Tennessee Valley Authority (TVA).
Brian Valania, General Manager of Centcore, stated that the potential for improved profits is greater in Tennessee due to lower-cost facilities, attractive power economics, and a strong base of technical resources. The company is assessing both the acquisition of an existing facility and the deployment of its own 'small-format' buildout, which may enable entry into multiple markets quickly with significantly lower upfront expenditure than large-format approaches. Valania added that several promising sites near Nashville and rural locations have been identified, offering favorable power infrastructure and compelling building attributes suitable for conversion into efficient operating environments.
The power advantage in Tennessee provides lower operating expenses for high-density compute and AI workloads, more predictable long-term pricing versus many other regions, strong grid reliability suitable for data center expansion, and higher-margin service delivery for colocation, GPU hosting, and managed AI infrastructure. This expansion directly supports Mitesco's AI-driven software ecosystem, including RoboAgent, the company's real-estate automation platform. As AI workloads become more compute-intensive, having a cost-optimized domestic data center network becomes a competitive advantage.
Mack Leath, CEO of Mitesco, reaffirmed the company's strategy to drive higher revenue levels through both organic growth and strategic acquisitions. The company has begun conversations with investment banking professionals about a substantial financing facility designed to support Centcore expansion, software initiatives, and potential acquisition opportunities. Leath noted they are evaluating the possibility of acquiring a larger, established technology provider with a meaningful user base that could benefit from their software platforms and small-format, lower-cost data center approach. These steps align with the long-term vision of uplisting their common stock to a senior national exchange.
The Tennessee expansion represents a strategic move in the competitive data center industry, where power costs and infrastructure reliability are critical factors for profitability. By targeting locations with existing structural characteristics suitable for conversion, Centcore aims to reduce capital expenditure while expanding its national footprint. The company's focus on AI infrastructure and enterprise-grade compute services positions it to capitalize on growing demand for specialized data center solutions. More information about Centcore's services can be found at https://www.centcoreusa.com, while investor information is available through the Securities and Exchange Commission at https://www.sec.gov.
