Big Digital Energy (BGDE) H.C. Wainwright 28th Annual Global Investment Conference summary

Market overview and industry transformation

• AI infrastructure is 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 scarcity of power and suitable sites is a key bottleneck for AI HPC growth, positioning miners as critical enablers.

• Labor shortages and rising costs, especially for skilled electricians, are significant challenges for new data center builds.

• The economics of AI data centers have shifted, with build costs rising from $4.5M to $13M per MW in recent years.

Business models and strategic approaches

• Companies are pursuing both colocation and AI cloud services, often separating these businesses for financing and institutional investment reasons.

• Specialized teams and acquisitions are used to bridge the technical gap between Bitcoin mining and AI data center operations.

• Some firms focus on retrofitting existing facilities, while others build new campuses from the ground up.

• Flexibility in business models allows for both large-scale and smaller, more specialized deployments.

• Partnerships and acquisitions, such as with Exaion and Enovum, are key to expanding technical capabilities and market reach.

Recent deals and portfolio developments

• Multi-billion dollar, long-term leases have been secured, such as a $6.6B, 20-year triple net lease in Georgia.

• Companies are actively developing gigawatts of power capacity, with exclusivity agreements and phased expansions in place.

• Recent contracts include a 500 MW deal with AMD and a pipeline for an additional 2,000 MW.

• Cloud service deals totaling $500M and rapid facility conversions, such as a mattress factory to an AI campus in six months, highlight execution speed.

• Prepayments and innovative financing structures are enabling rapid scaling and reducing capital requirements.