AIB Data Centers Inc. Investor update

Welcome everyone to the AIB Data Centers virtual roadshow. This is going to be in a webinar format. In fact, today we are not going to just go through a presentation slide by slide. What we are going to do today is we are going to do something an interview style. With us today is the CEO, Jerry Tang, and the CFO, Jolienne. Welcome, both of you. My name is Ted Haberfield. I am from MZ Group. We are a full-service investor relations firm, and I am going to be your host for today. Look, I am extremely excited about AIB. I know that most of us are familiar with what is happening in the digital infrastructure build-out and AI space. Lots of opinions and lots of volatility.

Today we are going to get into the weeds on what Jerry views the industry as and really talk about AIB and how he is positioned AIB to be a leader within the space. Just a quick note, though, this webinar is currently going to be in a listen and watch mode only. We will open things up for live Q&A immediately following our interview. In the meantime, feel free to use the chat feature, which is to your right, for most of you, to submit your questions. While you are there, go ahead and just drop us a quick message, to confirm you can hear us okay, and let us know where you are watching from today. We would love to see that. Also, please note a replay link for this webinar and roadshow will be emailed to you immediately after we conclude today's session. Keep an eye out for that email.

Melody, welcome from San Francisco Bay Area. Thank you, Jim, for letting us know. Welcome. Before we do proceed any further, I do want to remind you, that today's webinar will contain certain forward-looking statements from management concerning future events. I am obviously not going to read this slide word for word, 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, and a variety of factors could cause actual events and results to differ materially from those expressed in these statements. With that said, why do not we just go ahead and jump into it? Hello, William from New Jersey, welcome, and Wagner from Boca Raton, Shawn from Henderson, Nevada.

That is awesome. Welcome, all of you. Lots of folks calling in from all over the nation. Good to have you on board. With that said, let me just start off with Jerry here. Jerry, thanks for your patience. Jerry, for someone hearing about AIB for the first time, how would you explain the business, who your customers are, and how the company makes money?

Yeah, sure, Ted Haberfield. Do you use ChatGPT? Do you use Claude these days?

I do. Probably Yeah every minute.

We build the electrical cooling infrastructure behind the ChatGPT, behind the Claude, and other open source AI models. You can think of us as the physical infrastructure provider. We find land that has power to it, and then we put up a structure that the AI companies can install the servers there that powers the ChatGPT, that powers the Claude.

Your role really is bringing all these pieces together, right? You identify the suitable locations, right? You secure the power, you develop the facilities, and then provide capacity under these. These are long-term customer agreements, correct?

Yeah, exactly. We are secured by generally 10 years-plus contracts from our off-takers. In the case of CSO1, it is Nebius, and they have signed a 12-year contract.

That is fantastic. I would love to unpack the Nebius agreement here shortly. Before we do so, though, would love to just get a better understanding of what is the biggest obstacle to getting AI computing capacity operational?

The number one thing is that you got to have the power. You need to have either an ESA, that stands for Electrical Service Agreement, or PPA, Power Purchase Agreement, or FEA, if it is in Texas, without which there is really nothing to do. Once you have the power secured in the actual contract, you go out and market the site to the tenants. In AIB's case, we are targeting the neoclouds, the AI companies, and because we have decided to focus on the 40 MW to 90 MW segment, what I call the right-sized segment. We are able to deliver the capacity within 12 months, 14 months after we sign contract. With that, we have received a lot of demand for the sites we have secured. Each site we have, we have five, six people looking at the same capacity.

Great. Thank you. Because we have a lot of folks new to the story on our call today, we have over 200 people. I wanted to make sure that we just address a couple of things, just some foundational stuff. Another question that I know a lot of people are asking is very simple, what does power first mean in practice?

What that means is, in order to attract, we're customer first, right? Our customers are the AI companies, AI cloud companies. They all want to deploy compute to satisfy the increasing AI demand.

They want the deployed capacity within 12 months, within 14 months, 15 months. That's where everything stems from. We go out and we look at sites that have a clear path and executed contracts to energization. That means a substation, feeders that feeds into data center within the next 12 months, 14 months. That is the first thing we do. We have a dedicated power sourcing team. All they do is look at various sites out there. Since March, we have looked at over 60 sites all over the U.S.