High-performance compute (HPC) and AI infrastructure developer Blockfusion has signed an unnamed AI customer at its New York data center campus.The company, amid a pivot from cryptomining, has signed a non-binding Letter of Intent (LOI) with an unnamed AI customer for up to 300MW of critical IT capacity at its campus in Niagara Falls, New York.The proposed lease would be anchored by 85MW of guaranteed take-or-pay capacity, to be delivered in tranches, subject to due diligence and the signing of definitive lease agreements. Each phase would carry an initial 15-year firm lease term, with two five-year renewal options.Blockfusion said the 85MW guaranteed portion of the lease could generate approximately $2.8 billion in aggregate lease revenue over the initial 15-year term, or around $5.4bn if both renewal options are exercised. The company cautioned that the LOI is non-binding, except for certain confidentiality, exclusivity, and governing law provisions.The company is also advancing plans to expand the Niagara Falls campus beyond 300MW of total critical IT capacity. Blockfusion said it has entered into an exclusivity agreement with a landowner covering additional parcels that could support the planned expansion, and is in advanced negotiations toward a definitive purchase and sale agreement.“Expanding our Niagara Falls campus would give us access to highly strategic, power-rich locations with existing energy infrastructure,” said Kant Trivedi, COO of Blockfusion.The announcement comes as Blockfusion works to complete its proposed merger with Blue Acquisition Corp., a publicly traded special purpose acquisition company. The companies announced the business combination in November 2025, with the merged company expected to operate as Blockfusion Digital Infrastructure. Inc.In connection with the planned merger, Blockfusion and Blue have also agreed non-binding term sheets for a proposed $175 million private placement of convertible senior notes. The financing is expected to be anchored by funds managed or advised by Sona Asset Management and would be funded at the closing of the merger, subject to conditions.Blockfusion, Blue, and Sona have also signed a non-binding term sheet for a non-redemption agreement under which Sona would agree not to redeem approximately 3.3 million public shares of Blue in connection with the shareholder vote on the business combination.“Together, these arrangements, if completed, would provide additional capital at closing, positioning us to execute our development pipeline plans,” said Alex Martini, CEO of Blockfusion.“Our focus now is on completing the Form S-4 registration statement review process and closing the Business Combination as efficiently as possible,” Martini added.Blockfusion currently operates data center infrastructure in Niagara Falls and has been repositioning itself from cryptocurrency mining toward AI and high-performance computing infrastructure.DCD previously reported that the company had around 46MW of Tier I capacity at its Niagara Falls facility, with plans to expand to more than 100MW of Tier III capacity for AI computing.The company has also previously explored alternative power options for the Niagara Falls site, including a 2024 Memorandum of Understanding with Nano Nuclear Energy to study the potential deployment of microreactor technology at the facility.