AIB Data Centers Inc. Investor update

The AIB Data Center corporate update call. My name is Ted Haberfield from MZ Group, a full-service investor relations firm, and I'm going to be your host for today's presentation. Look, I'm really excited to be here as we discuss the opportunities ahead for AIB, and particularly on just the heels of what was announced over the last day or so with their contract with Nebius. AIB's model is really just built around securing power first and then deploying standardized capacity in manageable increments. Just a quick note. This webinar is currently in listen and watch mode only. We'll open things up for a live Q&A immediately following the presentation. In the meantime, feel free to use the chat feature to submit your questions, and while you're there, go ahead and just drop us a quick message.

The chat feature should be to your right when you're looking at the screen. Just confirm that you can hear us clearly and let us know where you're watching from today. That would be great. Please note a replay link for this webinar will be emailed to you immediately after we conclude today's session, so just keep an eye out for that email. Thank you, Jack. Appreciate you letting us know. Welcome. Listen, before we proceed any further, I do want to just go and remind you that today's webinar contains certain forward-looking statements from management concerning future events. I'm not going to read this entire slide to you, but please note that these forward-looking statements are based on the company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the company.

By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in these statements. With that said, I'd like to now just present to you your presenters for today. We have the CEO of AIB Data Centers, Mr. Jerry Tang. Jerry has over 20 years' experience as senior executive in global banking and infrastructure development, overseeing $40 billion in real estate and capital market transactions. We also have Jolienne Halisky. Hello, Jolienne. She is a CPA. She's got 20-plus years as a senior financing roles including her tenure over at Deloitte, and she's actually been working with Jerry Tang for the last two and a half years.

Today, Jerry and Jolienne will give us really a quick overview of the company, but also really show us some developments that took place, especially off of the announcement over the last day, and we'll also go over some other really important items that's timely. With that said, I'm going to introduce you to Jerry Tang, CEO of AIB Data Centers. Jerry, the floor is yours.

Thank you, Ted. I'm excited to present. One thing I want to make clear is the. Hold on one sec, Mike.

Can you hear me? Yes, we can hear you just fine, Jerry.

Okay. The floor is yours.

Sorry, there was an echo just now.

I think it's gone now.

Yeah. We are super excited to have this contract executed. It is a 50 megawatt IT load with 12 years initial term. It's a firm contract with no termination options. If there were termination options, it would be fully paid. We worked very hard to get this client, and they have done extensive due diligence on AIB, on the power contracts, on the site, on our team's ability to execute, construct the data center, getting that long lead time equipments. We have been through a lot to get the trust to sign this contract with us. With that said, this contract, because of customer confidentiality, we cannot disclose the exact total contract value. However, here on this table, we are offering you some comparisons.

These three companies have signed three different contracts ranging from $1.87 million per megawatt per year to $2.16 million per megawatt per year on IT load. I can tell you our rate is higher than all three of those. You can kind of do the math to land where the TCV is. We just can't say that ourselves. Secondly, we are receiving a material amount of prepayment from the client, and we can use that for POs and other construction costs right away. Based on that, we do not need to raise any equity. I'll say that again, we do not need to raise any equity, full stop. Again, this is a first proof of point of execution. If you go back to May, we signed the 65-megawatt utility contract, 15-year term.

In September, four months later, we signed this client offtake contract, 50 megawatt IT load. Basically, the entirety of that 65 megawatt utility load. If you translate into IT load is 50 megawatts. Next step will be getting the financing done and the start of construction. The construction actually will start. It's already kind of starting. We already started the decommissioning on the site of the existing Bitcoin mining facility. I'm going to skip this because I think people are very interested in knowing how we fund the whole project. Right now, we estimate the project to cost around $800 million. We estimate we can get a $560 million in construction debt, $140 million in pref equity. Those $700 million will be all on project level and will need $100 million-ish equity to fund the remaining cost. All that will be funded with prepayments.

If you look at our pipeline, CLT is on track to be built. It's contracted. It will be built in the next 10 months, 14 months. We already control another four sites. As a matter of fact, DFW1, we already own the site and have ESA executed. If you add all these up, we'll have another 280 megawatts that we can potentially contract with our customers and start to construct them in the next 3-6 months. Our strategy, as you can tell, is to focus on smaller data centers, anything sub-100 megawatts, so we don't have to get on a long process to get permits, get approvals. As you know, the pushback from communities on data center, it's pretty elevated right now.

Our strategy is to fly under the radar by focusing on smaller data centers and not to chase the shiny objects, the 200 megawatts, 300 megawatts data centers. If you just focus on the power you have, the 50s, the 60s, the 70s, that can be energized in the next 6 months, 12 months, you're not going to be distracted by the few hundred megawatts that's theoretically available in the next 2 years, 3 years, 4 years. You can focus more of your energy on execution, getting that customer contract signed, get that capacity delivered to customer, and start to deliver the cash flow. We believe we have a wonderful team to execute. I myself is a finance expert. I have done over $40 billion in commercial real estate finance, so this is my strong fit.