Tlou Energy (ASX:TOU) signed a binding Heads of Agreement with Kala Data FZCO to develop a high-density computational facility at Tlou's Lesedi Project in Botswana, according to a Tuesday filing with the Australian bourse.

Kala will fund the project through an interest-free loan, covering costs for gas well drilling, infrastructure, and equipment, the filing said.

Tlou will repay the loan from facility profits, initially retaining 25% while 75% goes toward repaying Kala's investment. After repayment, profits will be split equally, the filing added.

The facility will create additional revenue through services like blockchain, cloud computing, data center leasing, and research and development and it will be developed alongside Tlou's 10-megawatt gas-to-power agreement with Botswana Power Corporation, with the flexibility to redirect power to the national grid if needed, the company said.

The project is set to begin immediately, with the facility located near Tlou's existing infrastructure, the company added.