Core Scientific (CORZ) investor relations material

Market overview and industry transformation

• AI infrastructure is a leading investment theme, with hyperscalers expected to spend over $1 trillion on AI in 2027 alone.

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

• The shift is driven by higher asset values and revenue per megawatt in AI HPC compared to traditional Bitcoin mining.

• Labor shortages and rising costs, especially for electricians, are significant bottlenecks in data center construction.

• Companies are adapting by forming partnerships, acquiring specialized teams, and retrofitting existing facilities for AI use.

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 helps attract institutional investors and secure financing.

• Retrofits and acquisitions of experienced teams enable rapid transformation of non-traditional spaces into AI campuses.

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

• Partnerships with established EPCMs and leveraging in-house expertise are key to managing construction and operational risks.

Recent deals and portfolio developments

• 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 expansions are underway, with additional hundreds of megawatts under negotiation across multiple states.

• New projects include renewable-powered campuses, large-scale retrofits, and international GPU-as-a-service launches.

• Prepayments and innovative financing structures are enabling rapid scaling and reducing upfront capital needs.

• Demand for AI infrastructure remains robust, with customer pipelines filling quickly and new sites being brought online.