Core Scientific (CORZ) 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 have secured over $160 billion in AI colocation deals and control access to over 14 GW of power capacity.

• The sector is rapidly transitioning from Bitcoin mining to AI HPC, leveraging existing land and power assets to meet surging AI compute demand.

• Labor shortages and rising costs, especially for electricians and specialized equipment, are key bottlenecks in data center development.

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

Business models and strategic approaches

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

• Spinning off pure-play AI infrastructure businesses and acquiring specialized teams enables access to institutional capital and technical expertise.

• Colocation and cloud services require distinct skill sets; retrofitting existing facilities is a key strategy for rapid deployment.

• Firms are cautious about locking up assets in long-term leases, balancing optionality with stable revenue streams.

• Partnerships and acquisitions, such as with Exaion and Enovum, provide expertise in mission-critical data center operations.

Recent deals and portfolio highlights

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

• Exclusive agreements and large-scale projects are underway, with some sites offering up to 2,000 MW for future expansion.

• Rapid scaling is enabled by strong community partnerships, supply chain certainty, and innovative construction approaches.

• Cloud service deals totaling $500 million and multiple retrofitted facilities have been announced, with significant customer pipelines.

• Prepayments and investment-grade tenants are key to de-risking and accelerating project execution.