SOS Limited Announces Development of Tier III Modular Data Center at Longfellow Ranch, Texas

Rhea-AI Summary

SOS (NYSE: SOS) announced development of a next-generation Tier III modular data center at Longfellow Ranch, Fort Stockton, Texas, marking a strategic shift from cryptocurrency mining toward digital-infrastructure services.

The company plans a prefabricated modular platform to speed construction, standardize quality, lower capital costs, and reduce carbon footprint. SOS estimates the modular approach could cut total project cost by ~50%, reducing a conventional 100 MW build from about $1.2B to ~$500M. The project starts with a 10 MW cluster and SOS anticipates scaling to 100 MW within 18 months, subject to market demand and customer onboarding. Further updates expected in early 2026.

Positive

• Estimated modular cost reduction of ~50% for a 100 MW build
• Initial 10 MW phase with a clear plan to scale to 100 MW within 18 months
• Prefabricated Tier III design promises faster delivery and standardized quality

Negative

• Scaling to 100 MW is explicitly contingent on market demand and customer onboarding
• Estimated investment of ~$500M for 100 MW remains a sizable capital requirement

Key Figures

Traditional build cost $1.2 billion Estimated cost for 100 MW traditional data center

Modular project cost $500 million Estimated cost for 100 MW Tier III modular data center

Initial capacity 10 MW First modular data-center cluster at Longfellow Ranch

Campus scale target 100 MW Planned Longfellow Ranch capacity within 18 months

Expansion timeline 18 months Anticipated timeframe to reach 100 MW, demand permitting

Nearby AI project 2 GW AI data-center development involving CoreWeave and Poolside

H1 2025 revenue $89.6 million Semi-annual 2025 results, 48.1% year-over-year increase

H1 2025 net loss $14.2 million GAAP net loss for H1 2025, with negative gross margin

Market Reality Check

$1.91 Last Close

Volume Volume 643,256 is 10.14x the 20-day average of 63,458, signaling heavy interest before this news. high

Technical Price at $2.20 is trading below the 200-day MA of $3.71, despite the strong one-day gain of 47.65%.

Peers on Argus 3 Up

While SOS moved sharply higher with a 47.65% gain, peers showed mixed performance: SLNH up 16.41%, GREE up 10.46%, ARBK up 2.36%, but ANY down 2.11% and GRYP down 6.44%. Momentum scanner flags several peers moving up, yet the scanner does not classify this as a coordinated sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Sep 26	Semi-annual earnings	Negative	-3.9%	Revenue grew but losses widened and cash fell sharply after prepayment.
Aug 28	Capital structure change	Negative	-23.3%	Termination of ADS program and 150-for-1 share consolidation.
Jul 30	Dilutive offering	Negative	-54.5%	Pricing of $7.5M registered direct offering and issuance of warrants.

Pattern Detected

Recent material events (offering, share structure changes, earnings) all saw negative price reactions, indicating a pattern of selling into corporate announcements.

Recent Company History

Over the last few months, SOS has undergone significant financial and capital-structure changes. On Jul 30, 2025, it priced a $7.5M registered direct offering with associated warrants, which was followed by a -54.5% move. On Aug 28, 2025, it announced termination of its ADS program and a 150-for-1 share consolidation, with shares falling 23.31%. Semi-annual results on Sep 26, 2025 showed $89.6M revenue but a $14.2M net loss and a sharply lower cash balance, and the stock declined 3.94%. Against this backdrop, the Texas Tier III data-center plan represents a strategic shift toward digital infrastructure growth.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-06-25

$500 million registered capacity

An effective Form F-3/A filed on Jun 25, 2025 authorizes up to $500 million of securities and registers 484,281,240 Class A ordinary shares for potential resale. The filing describes it as a “baby shelf” with sales capped at one-third of the $45.8 million public float over any 12-month period, and notes no usage in the prior year. Shelf capacity has been tapped at least once via a 424B5 on Jul 31, 2025.

Market Pulse Summary

The stock dropped -13.2% in the session following this news. A negative reaction despite the Tier III modular data-center plan would contrast with the growth-oriented tone of the announcement. Historically, SOS shares have fallen on offerings and structure changes, including moves of -54.5% and -23.31% after prior news. The presence of an effective shelf for up to $500 million of securities and past use via a 424B5 filing adds ongoing capital-raising risk that could weigh on sentiment even when strategic expansion is highlighted.

Key Terms

tier iii technical

"developing a next-generation Tier III modular data center at a Longfellow Ranch"

Tier III is a label for the third level in a multi‑level ranking system used across industries to mark relative standing — often indicating lower priority, capacity, or quality compared with Tier I or II. Investors use it as a quick signal about expected revenue, cost, risk or regulatory demands for an asset, facility or customer segment; think of it like choosing a mid- or economy‑class option when comparing service levels or risk profiles.

ai data-center technical

"announcement of a 2 GW AI data-center development involving CoreWeave"

An AI data-center is a specialized facility that houses the high-powered computers, storage and networking needed to build, train and run artificial intelligence applications — think of it as a factory floor for AI models. It matters to investors because these centers require large upfront spending, influence a company’s ability to scale AI products, affect ongoing energy and maintenance costs, and can be a source of competitive advantage or operational risk.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 22, 2025 /PRNewswire/ -- SOS Limited (NYSE: SOS) ("SOS" or the "Company") announced today that it is developing a next-generation Tier III modular data center at a Longfellow Ranch site in Fort Stockton, Texas. The project is intended to mark a significant strategic expansion for SOS as it transitions from a traditional cryptocurrency-mining operator to a full-scale digital-infrastructure provider.

Based on the conceptual design used in global large-scale data-center projects, SOS plans to deploy a prefabricated, modular Tier III platform that combines speed, efficiency, and scalability.

According to the design approach from the company, the modular data centers are designed to offer:

• Dramatically reduced construction timeline through pre-assembling
• Lower capital costs compared with conventional brick-and-mortar facilities
• Consistent quality, standardized components, and streamlined installation
• A greener and more energy-efficient layout with a reduced carbon footprint

These advantages allow SOS to build high-quality data-center capacity much faster and at materially lower cost. The company estimates that the modular approach may reduce total project cost by nearly 50%, lowering the expected investment from approximately $1.2 billion for a traditional build to around $500 million for a 100 MW data center.

The project will begin with a 10 MW modular data-center cluster. This first phase is designed to serve as a foundational building block for broader expansion. SOS anticipates scaling the Longfellow campus to as much as 100 MW within 18 months, depending on market demand and customer onboarding.

Longfellow Ranch is rapidly becoming one of Texas's most active centers for next-generation compute development. The area recently attracted industry attention after the announcement of a 2 GW AI data-center development involving CoreWeave and Poolside.

By deploying Tier III modular capacity in the same region, SOS is positioning itself to meet surging demand for secure, reliable, and rapidly deployable hosting services, particularly from AI, cloud, and enterprise customers seeking alternatives to traditional data-center markets.

"SOS is excited to take this important step toward becoming a leading provider of high-performance data-center infrastructure," Yandai Wang, the Chief Executive Officer of the Company commented. "The modular Tier III design gives us speed, flexibility, and cost efficiency as we grow, and Longfellow Ranch provides an ideal location for scaling into the expanding AI-compute market."

SOS plans to release further development updates and customer engagement milestones in early 2026.

About SOS Limited

SOS is currently engaged in commodity trading and cryptocurrency mining and hosting business. Our commodity trading services are primarily delivered through our subsidiaries in China, while our cryptocurrency mining and hosting operations are managed by our subsidiaries in the U.S. . For more information, please visit: http://www.sosyun.com/.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance.  SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements.

These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC").

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View original content:https://www.prnewswire.com/news-releases/sos-limited-announces-development-of-tier-iii-modular-data-center-at-longfellow-ranch-texas-302647905.html

SOURCE SOS Ltd.

FAQ

What did SOS (NYSE: SOS) announce on December 22, 2025 about Longfellow Ranch?

SOS announced development of a Tier III modular data center at Longfellow Ranch, starting with a 10 MW cluster and plans to scale to 100 MW.

How much does SOS estimate the 100 MW modular data center will cost?

SOS estimates the 100 MW modular approach will cost about $500M versus ~$1.2B for a traditional build, a ~50% reduction.

What is the timeline for SOS to reach 100 MW at Longfellow Ranch?

SOS anticipates scaling the Longfellow campus to 100 MW within 18 months, depending on market demand and customer onboarding.

What are the expected operational advantages of SOS's modular Tier III design?

The company cites faster construction, lower capital costs, standardized components, streamlined installation, and a reduced carbon footprint.

Is SOS shifting its business model with this Longfellow Ranch project?

Yes; SOS is transitioning from a traditional cryptocurrency-mining operator to a full-scale digital-infrastructure provider.

When will SOS provide further updates on the Longfellow Ranch development?

SOS plans to release additional development updates and customer engagement milestones in early 2026.