Bitdeer Technologies Group (BTDR) investor relations material

Market overview and industry transformation

• Hyperscalers are projected to spend over $1 trillion on AI in the coming year, driving demand for scalable power and infrastructure.

• Bitcoin miners are rapidly transitioning into AI data center developers, leveraging their access to land and power to meet AI/HPC demand.

• The economics of AI data centers differ significantly from Bitcoin mining, with costs per megawatt rising from $4.5M to $13M due to labor and equipment.

• Labor shortages and supply chain constraints are key bottlenecks in scaling AI infrastructure.

• Companies are optimizing portfolios by targeting both large-scale and smaller inference sites to maximize asset value.

Business models and strategic approaches

• Firms are pursuing both co-location and AI cloud services, often spinning out pure-play AI infrastructure businesses to attract institutional capital.

• Acquisitions of specialized teams and companies are enabling rapid retrofitting of facilities for AI, with some converting factories into data centers in under six months.

• Some companies prefer co-location for large sites and GPU-as-a-service for smaller sites, balancing optionality and customer needs.

• Partnerships and joint ventures with experienced EPCMs and infrastructure firms are used to de-risk construction and accelerate delivery.

• Project-level financing typically involves 80% debt and 20% equity, with asset contributions and prepayments reducing capital requirements.

Recent deals, pipeline, and financials

• Multi-billion dollar leases and cloud service deals have been secured, with some companies reporting $6.6B and $500M contracts.

• Exclusive agreements and large-scale expansions are underway, with up to 2,000 MW of new capacity in the pipeline for some firms.

• Rapid scaling is enabled by customer prepayments and strong demand from hyperscalers, neoclouds, and enterprise clients.

• Retrofit and clustering strategies are used to aggregate power from multiple renewable sources, supporting large AI campuses.

• Execution certainty, political headwinds, and community engagement are critical for project success and financing.