VisionWave Holdings Signs Term Sheet for a Proposed Tier IV Data Center Joint Venture with Lucky Whale Production Limited

VisionWave Holdings, Inc. (NASDAQ: VWAV) has announced a significant minority investment in the establishment of a jointly-held company with Lucky Whale Production Limited, a Hong Kong-based project sponsor. The deal, valued at approximately $40 million, aims to develop a Tier IV data center campus in Beth Shemesh, located in the Jerusalem district of Israel. The term sheet outlining the agreement was disclosed on June 16, 2026, and the transaction remains subject to due diligence, negotiation of definitive agreements, and various regulatory approvals.

Under the terms of the agreement, VisionWave will hold a 68% stake in the Joint Company, which will, in turn, own 75% of the project-level special purpose vehicle responsible for the data center project. This structure will provide VisionWave with an effective look-through interest of 51% in the underlying assets, including the land and building permits necessary for the data center's construction. The investment will be executed through the issuance of shares valued at approximately $40 million, with no cash component involved in the transaction.

The proposed data center is designed to be an underground facility that meets rigorous Tier IV specifications, which are recognized for their high reliability and performance standards. The first phase of the project is expected to encompass around 15,000 square meters across ten data halls, targeting an IT load of 10.5 MW. Key features include dual power feeds, on-site fuel and water reserves, and provisions for direct liquid cooling, all aimed at supporting advanced workloads such as artificial intelligence and high-performance computing.

The strategic rationale behind this investment reflects VisionWave's focus on expanding its footprint in the data center sector, which is experiencing robust growth driven by increasing demand for cloud services, data storage, and processing capabilities. The partnership with Lucky Whale, which specializes in real estate project management, is expected to leverage their expertise in navigating the complexities of large-scale infrastructure projects. Additionally, the collaboration aligns with VisionWave's broader mission to integrate advanced technology solutions within critical infrastructure.

As the global data center market continues to evolve, driven by trends such as digital transformation and the proliferation of IoT devices, this investment positions VisionWave to capitalize on emerging opportunities. However, the successful execution of this project will depend on securing the necessary financing and regulatory approvals, as well as navigating the competitive landscape of data center development. The implications of this transaction could extend beyond the immediate project, potentially influencing future investments and partnerships within the sector.