Understand How Green Tech Capital OZ Fund Transforms HPC Data Center Industry

Feb 21, 2024

Want a piece of the billion-dollar North American HPC Data Center market? Tap into the huge financial potential of green energy by investing in the Green Tech Capital OZ Fund!

Looking for a great investment opportunity in the green technology sector? Want to make a difference to the planet while making some money? More details at https://www.greentechozfund.com


Understanding the Benefits of the Green Tech OZ Fund: A Comprehensive Guide


The Green Tech Capital OZ Fund, a Qualified Opportunity Zone (QOZ) fund, is a unique investment opportunity that combines significant tax benefits, environmentally friendly technology, and a promising market outlook. This article aims to provide an in-depth understanding of the fund and its growth potential.


What is the Green Tech OZ Fund?


The Green Tech OZ Fund is designed to provide initial capital for the development of high-performance compute (HPC) data centers. These data centers will be powered by renewable carbon-free geothermal energy, offering environmentally friendly, low carbon footprint services. The fund aims to provide fast investment repayment, generous distributions, no further investor dilutions, and minimal manager fees. Moreover, the data centers are expected to have a disruptive pricing model, being 8 to 10 times less expensive than the top three public cloud providers.


Investment Structure and Projections


The fund has a minimum investment of $500,000 and a target raise of $50 million, with a minimum fund offering of $1 million. It projects gross sales of $89,342,282 with an annual net revenue of $64.5 million. Furthermore, the fund anticipates a 65% annual return on investment to the fund. These projections portend a highly profitable venture that will grow substantially with time.


Tax Benefits and Opportunity Zones


Opportunity Zones are designated areas in the US that offer significant tax benefits to investors. Investors can defer tax on prior capital gains by investing in a Qualified Opportunity Zone Fund (QOF) within 180 days of the sale. If investments are held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in the Opportunity Fund. There are more than 8,500 Opportunity Zones across the US. The Green Tech Capital OZ Fund takes full advantage of the Federal Tax Cuts and Jobs Act of 2017.


The First Data Center and Management Team


The first data center of the Green Tech Capital OZ Fund will be located in Northern, Nevada. This data center will be powered by carbon-free hydroelectric power. It will utilize single-phase immersion cooling, which reduces cooling costs and improves efficiency. The management team of the fund includes individuals with experience in HPC data centers, geology, commercial real estate development, project management, and engineering, ensuring a high level of expertise at the helm.


Market Outlook


The North American HPC data center market is several billion dollars annually with over a 10% compound annual growth rate. The growth potential of the market is driven by research and innovation, AI and machine learning applications, government agencies, climate modeling, and increasing data needs. The Novel Therm TAM (Total Addressable Market) is forecasted to exceed $4.2 billion.

Novel Therm: The HPCaaS Provider


Novel Therm is a company that provides high-performance compute as a service (HPCaaS) powered by renewable carbon-free geothermal energy. The company offers immersion-cooled HPC data centers at a disruptive price point, up to 10 times less expensive than the average market price. The data centers are powered by 100% renewable low-heat geothermal power plants, resulting in a carbon-free and sustainable operation. Headquartered in Southern California, Novel Therm focuses on providing low-cost HPC solutions using carbon-free geothermal energy and offers on-demand bursting services with usage-only flat-rate billing.

In summary, the Green Tech Capital OZ Fund provides a unique investment opportunity that combines environmental sustainability, significant tax benefits, and a promising market outlook. 


Top 16 Benefits For Green Tech OZ Fund Investors:


  1. Taxes paid: Fund expects to pay your capital gains tax prior to tax deferred deadline of December 31, 2026.
  2. Accelerated Investment Payback: You stand to quickly recoup your investment due to generous cash flow and distributions.
  3. High Profitability: Projected annual returns starting at 65% on the investment, significantly higher than industry averages.
  4. Temporary Tax Deferral: Capital gains when invested will defer taxes due until December 31, 2026 when invested in a Qualified Opportunity Zone Fund (QOF)
  5. Tax-Free Growth: Profit reinvestment in the fund will exponentially grow the enterprise 100% tax free. 
  6. Tax-Free Capital Gains: Any capital gains realized after 10 years in the QOF will be 100% tax-free, further boosting your returns.
  7. No Additional Investor Dilution: The initial capital raise is all that is necessary for the Fund’s model to succeed.
  8. Minimal Manager Fees: Our management fee is a mere 5% carried interest, which is significantly lower than typical fees in the market, typically 20%.
  9. Disruptive Pricing: Our high performance compute as a service (HPCaaS) offering is 8-10 times less expensive compared to the top three Cloud providers, establishing a significant competitive edge.
  10. Low Carbon Footprint: The fund invests in green technology, which aligns with global efforts to reduce carbon footprint and contribute to environmental sustainability.
  11. Conservative Projections: Projected sales of $89.3 million and 65% ROI in first year of operation at a conservative 60% data center occupancy rate.
  12. Growing Demand for Computing Power: The ever-increasing demand for computing power ensures the long-term viability and profitability of QOF. The HPC market has experienced a 10% - 19% compound annual growth rate for the last 5 years.
  13. Renewable Energy Utilization: Our data centers use carbon free energy, further contributing to environmental sustainability and potential cost savings.
  14. Reduced Carbon Dioxide Emissions: Our operations will significantly reduce carbon dioxide emissions, potentially offsetting 350 tonnes of CO2 per year, per megawatt of compute.
  15. Immersion Cooling Technology Savings: The use of immersion cooling technology in our data centers leads to substantial cost savings and equipment longevity, increasing profitability.
  16. Positive Community Impact: Your investment in the Green Tech QOF will positively impact disadvantaged communities through investment in Opportunity Zones. Doing well by doing good.


For more info, go to https://www.greentechozfund.com/fund-info/understanding-the-benefits-of-the-green-tech-oz-fund-a-comprehensive-guide


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