White Fiber (WYFI) investor relations material

Market overview and industry transformation

• AI infrastructure is now a leading investment theme, with hyperscalers expected to spend over $1 trillion on AI in the coming year.

• Bitcoin miners are rapidly transitioning into AI data center developers, leveraging their access to scalable power and land.

• The economics of AI data centers differ significantly from Bitcoin mining, with costs per megawatt rising from $4.5 million to $13 million due to labor and equipment.

• Labor shortages and supply chain constraints are key bottlenecks for new data center builds.

• Companies are optimizing asset value by converting mining infrastructure to AI HPC, accelerating plans due to recent Bitcoin price changes.

Business models and strategic approaches

• Two main monetization models are co-location and AI cloud services, with some firms pursuing both for diversification.

• Spinning out pure-play AI infrastructure businesses helps attract institutional investors and secure financing.

• Acquisitions of specialized teams enable rapid transformation of legacy facilities into AI campuses.

• Co-location deals provide stability and predictable revenue, while GPU-as-a-service models offer flexibility and growth potential.

• Companies are cautious about locking up assets in long-term leases, balancing optionality with stable income.

Recent deals and portfolio developments

• Multi-billion dollar leases and cloud service contracts have been secured, with exclusivity agreements for future expansions.

• Notable deals include a $6.6 billion, 20-year lease, a 500 MW agreement with AMD, and $500 million in new cloud service contracts.

• Companies are actively developing new sites, with some leveraging renewable energy assets and clustering power sources for large-scale campuses.

• Customer prepayments and innovative financing structures are reducing capital requirements and accelerating project timelines.

• Demand for AI infrastructure remains high, with strong pipelines and rapid scaling across North America, Europe, and Asia.