Duos Technologies Group (DUOT) LD Micro Main Event XIX Investor Conference summary

Organizational transformation and strategy

• Transitioned from rail inspection to a data center infrastructure and edge AI business, with subsidiaries targeting multiple sectors including rail, logistics, and energy.

• Major expansion into modular data centers for tier three and four markets, leveraging partnerships in education and healthcare.

• Asset Management Agreement with Fortress Investment Group and 5% ownership in a related power company.

• Management team strengthened with new President and board members with data center expertise; leadership includes industry veterans with backgrounds in finance, technology, and large-scale infrastructure.

• Board consists of five members (four independent), with committees for audit, compensation, and governance.

Edge data center deployment and business model

• Deploying modular, mini data centers in underserved U.S. markets, starting in Texas, with plans to expand to Illinois and other states, aiming for 15 EDCs in 2025 and 200 by 2028.

• Each pod contains 15 cabinets, sold at $1,800 per cabinet, targeting education, healthcare, and mobile operators as anchor tenants.

• Model shifts customer costs from CapEx to OpEx, providing backup power, cooling, and robust connectivity.

• Modular, patent-pending clean room technology ensures equipment reliability and compliance, enabling rapid deployment and scalability.

• Six pods deployed, aiming for 15 by year-end and 45 more next year, with strong demand from carriers and institutions.

Market drivers and customer segments

• Rising demand for high-speed connectivity and AI computing is driving edge computing adoption, especially in underserved and rural regions.

• Key customers include school districts, fiber network providers, WISPs, local governments, healthcare, oil and gas, utilities, manufacturing, and agriculture.

• Edge data centers enable robust networks, local colocation, and improved connectivity for mobile operators and content providers.

• Case studies highlight benefits for education (e.g., AWS Direct Connect for schools) and telecom carriers (rapid deployment, low-latency service).

• Expansion pipeline includes multiple U.S. states, focusing on rural and emerging regions.