Good day, and welcome to the iAccess Alpha Virtual Best Ideas Fall Investment Conference 2026. Our next presenting company is AIB Data Centers Inc. If you would like to ask a question during the webcast, you may do so at any point during the presentation by clicking on the Ask Question button on the left side of your screen. Type your question into the box and click Send. Today's presentation will begin with a short video. Following the video, Jerry Tang will begin the company presentation. Let's begin.
In the AI economy, power is scarce. AIB has it. Scalable, secured, built for what's next. AIB, the power, the people, the pipeline.
Welcome, everyone. Today, I am going to give you a presentation on AIB. AIB Data Centers, a power-first compute infrastructure company that is focused on delivering data center to the AI economy. This is a typical forward-looking statements, so please note the disclaimers. Why AIB? Why now? AIB is present in markets with the fastest growth market in the country for data center. We have a large pipeline of power sites that are under development, that are under diligence, that can satisfy the very high demand from AI companies and AI cloud companies. We have a team that have executed over 3 GW of data center construction in their past career. Also, we have done over $40 billion deals, in arranging for construction deals.
This is a great opportunity right now because our stock is trading at just below $2 million per megawatt, comparing to some of the peers that are averaging over $20 million per megawatt. The gap is there because we have not executed a tenant contract yet. We are in the public market for barely six months, but we are going to execute our business plan. In the past six months since we have become public, we have contracted 65 MW, with 15 years of term, in one of our southeast site. According to our power acquisition team, we have looked at over 50 sites in the U.S. and issued LOIs to over 10 sites. We are looking to acquire four to five sites in the next three to six months, totaling just over 300 MW. Our goal is to contract over 300 MW by year-end or Q1 2027.
Unlike most of the other data center companies, we're going to be focused on mid-market. What does it mean to be mid-market? It means we are targeting AI companies or AI cloud companies between the market cap or valuation between $10 billion and $100 billion. They are not smaller companies, but they are smaller than the trillion-dollar companies. As a result, that demand has been very underserved. By focusing on smaller data centers, we can lease the data center much faster, because these guys, they generally move faster. Because the data centers are of smaller footprint, we can deliver them much faster as well, creating higher demand. As you know, everybody wants the data center tomorrow. We have a simpler supply chain because we have fewer equipments that we need to procure.
By definition, when you have a smaller footprints, you have a smaller impact to the surrounding community, and you have less pushback, and you have a higher certainty of getting permits. Now, let's turn to the next slide, and I'm going to hand over to Gary, our VP of Sales.
Thank you so much, Jerry. If you can actually go back to the last slide, Jolienne. One thing that I want to preference, I've been in this industry for over 10, 15 years and had the opportunity to sell to all the major hyperscalers and neo clouds. One of the reasons why I came to AIB is Jerry's strategy, and he's very cerebral in his approach in being focused on these institutional mid-market assets, anywhere from 50- 100 MW. To his point, because of the quick sales cycles and the fast delivery times from a construction standpoint, and being able to navigate the critical pathways to execution when it comes to supply chain, this all lands on one key goal, which is speed to market.
Our portfolio aligns perfectly with our target market, which is, as Jerry mentioned, the Tier 1 and Tier 2 neo clouds, and also some of the smaller enterprise clients. Most of these AI companies are looking for power between now and anywhere first half 2028. Having this type of approach with our portfolio gets us to that speed of market, and be able to hit the capacity goals that our target audience and our target market is striving to achieve. There is a gap of power that is needed to supply the demand, and it's very significant. If you just take the top tier neo clouds into hyperscale entities right now, you're looking at their capacity planning. They're behind at least 25- 30 GW currently.
As you can see from this slide here, there's about 66 GW under construction right now. 95% of that's pre-committed. I can also preference that there's over 200 GW of capacity that is needed between now and the end of 2029, and that's incredibly significant. Right now, the North American vacancy for the third, fourth consecutive year is less than 1%. For the assets that we are bringing to the marketplace, as you can see here from this slide, we're looking at typically one anchor tenant per asset, per site. The average term is about 10- 15 years. When you look at what that comes out to per megawatt per year, it's anywhere between $1.5 million- $2.8 million, which is significant. At the end of the day, we are a power first strategy.
We're not going to offer any land that doesn't already have the power secured. We're not marketing theoretical power. We're developing sites that already have, as you can see, our first gate, the power agreement in place, either an executed ESA and a power purchasing agreement in place. At the end of the day, the bottleneck isn't the land, the bottleneck is the power. It's the utility agreements, it's the transmissions, it's the delivery schedules for power. We want to make sure we have the power under control, then we have the land under control, and lastly, we have the interconnection under control. When we have those three facets, that's when we look at the asset, and that's when we move forward to acquiring the land.
Again, it's all about speed to market, and we want to ensure that we have firm power readily available as we are a power first strategy when it comes to building out our portfolio for our customer base. Thank you, Jolienne.
Awesome. Thanks, Gary. I'll jump in. I'm Jolienne Halisky, I'm the CFO with AIB. The first thing I want to talk about is what a megawatt is actually worth. On the left-hand side of the slide, we speak to some of the benchmarks per megawatt. On the other side, we are going to talk a little bit about what these contracts look like at full lease-up. If we pull this apart, basically 65 MW of utility contract demand or utility load at our 1.3 design PUE converts to about 50 MW of critical IT load. This is the power that actually reaches the racks and generates revenues. At a benchmark of $1.8 million- $2 million per megawatt per year, that is roughly about $93 million of annual revenue at stabilization, with expected net operating income margins running in between that 85%- 90% range.
Because the tenant pays for the power directly under the triple net structure, that utility cost is a pure pass-through, it is not a margin line that shows up on our P&L. The net operating income range is roughly $79 million-$84 million against a total project cost that is projected to be around $850 million. Over a 10-12 year base term, illustratively speaking here, we are looking at a 12-year base term. That math produces approximately $1.32 billion of total contract value when you factor in the annual escalators. This lease is the catalyst that turns our math from illustrative, our projections from illustrative into contracted revenue once we have that signed lease, that is where we are going to go next.
For us, one signature changes everything, and we are going to look at these three pieces that are impacted significantly with that signature separately. First of all is the contracted revenue. Illustratively, the 50 MW of critical IT load leased at the current market rate of $1.8 million-$2.2 million per megawatt per year creates approximately, like we mentioned, that $1.32 billion of total contract value over the 12-year lease term. That is basically from zero to $1.32 billion with just one signature. Secondly, we have the contract to cost coverage. Against total project cost of roughly $850 million, that is a ratio of approximately 1.55x . The initial lease term alone repays the entire build and returns approximately $465 million above that before any renewals or before any potential expansion phases. Third is payback timing.
If we assume the 3% annual escalators cumulative contracted rent crosses 100% of the project cost around year nine of that initial 12-year term. Years 10, 11, 12 are effectively all margin. Because this is structured as a build to suit lease, rent commences at the full contracted rate from day one. There is no lease ramp-up period that we need to fill with tenants. The reason we treat this signature as a catalyst rather than any milestone along our strategy is that it accomplishes three things at once, and that being committed revenue, enhanced financeability, and closes our valuation gap. With that, I am going to hand back to our CEO, Jerry Tang.
Thank you, Jolienne. Can you turn back to that slide? I just have a comment there.
Sure.
While the contracted value is $1.32 billion, the capital markets will price that at $85 million each NOI, probably at a 20x, 25x. If you do the math, that creates potentially over $1 billion in value creation just by signing a lease and deliver the capacity to the tenant. To execute our business plan, we have assembled a team. I myself have done over $40 billion deals in commercial real estate and infrastructure, and a big part that tenants, the clients, look at is the ability of the management team to execute a financing capital raising. That is my stronger fit. We have assembled a team. For example, Gary has done many hyperscale or enterprise data center leases and sales. Alex used to work in Digital Realty, one of the largest data center REIT in the world.
Chris is our head of construction execution, and he has worked in AWS with over 3 GW of data center construction under his belt. We believe this is a team to win. There are some talks in the chat room that the management has significant shares in the company, and there is a lock-up period that is going to expire in mid-September. What I can tell you is there is no intention to sell any shares that is held by VCV Digital and Tiger Cloud, both of those entities I control. The goal is to continue to own the shares because they are extremely undervalued in my opinion. To summarize, to succeed in this business, you need a very talented team with experiences in construction, financing, and power procurements in order to execute at a scale. Obviously, you need power. Without power, there is nothing to work with.
As you know, power is new currency, and it is the biggest constraint for the AI growth. If you control power, which we do, you should command a very valuable position. In addition to that, we have an experienced leasing team that has tons of experiences in selling to AI companies, enterprise. This is a very sophisticated selling process, and we have that experiences. I can tell you the demand is very high, far outstrip supply, as Gary has iterated in prior slide, is 2x, 3x of the construction pipeline for the next three to four years. For the last quarter, we have done a few things that are quite significant. For example, we have contracted 65 MW under a 15-year ESA, fully committed power supply agreement.
We have hired and rounded out the team further by getting talents in construction, talents in sales, talents in procurement, and also finance. We are in active search for a COO that is of very high caliber in the data center industry right now. Also, we raised over $60 million from institutional investors. Some of the names are public, for example, Point72, Davidson Kempner, and Blackstone, some of the top investors in the world. We were also included in the Russell 3000 Index and covered by two analysts from different investment banks. We have identified, as I pointed out, we have been actively looking for new powered sites to grow our portfolio, to diversify our sites, and we have a few hundred megawatts in our pipeline that will continue to fuel our growth.
As Jolienne pointed out, the next catalyst will be one for new site acquisition or better yet, a client contract worth well over $1 billion.
Awesome. Thanks, Jerry. We're going to jump into some Q&A right now that we've received that have come in. First question is: What are the biggest milestones investors should watch as AIB transitions from Bitcoin hosting to AI data centers? I'm going to pass that one to Jerry to answer.
I mean, the next biggest, again, catalyst will be signing a lease with a global big AI firm that will showcase to investors that we have been diligenced by very large firms, enterprise, that they trust our ability in delivering the capacity, trust in our ability to execute the plan to deliver that data center capacity.
Awesome. Gary, I'm going to give you this question. What differentiates AIB's power-first strategy from other AI data center developers?
Absolutely. I think first and foremost, Jerry's experience as a crypto mining operator has given us a leg up in the marketplace when it comes to being able to find off-market assets that already have energized power. Having those relationships with other owners and operators already cultivated and being able to have visibility to some of these assets and these sites that others don't, has given us an advantage when it comes to building out our portfolio.
Great. I'm going to give you this one as well, Gary. How strong is the current tenant pipeline?
Phenomenally strong. Again, we're blessed. I've had years of experience working with every single major neo cloud globally on the planet. It's not just that our team has a line of sight and also a relationship with these neo clouds, but it's really understanding their business. We understand which neo clouds are easy to do business with, which ones need to contract fast because we understand what their customer pipeline is, who their off-takers are, how far behind they are on their own capacity roadmaps over the next two to three years. We're just not having conversations with them about 2027 power. We're having strategic conversations and being a true partner of theirs when it comes to commissioning power in 2028, 2029, and beyond.
We understand what their buying cycles are like, what their procurement processes are like, what their legal departments are like as far as be it if they have in-house counsel versus not. So we have a great understanding of who our customer base is, and that allows us to strategically be able to place customers in the assets that we're looking at. Every asset that we're doing our due diligence on, we're looking at acquiring, we already have four to six potential customers that we have lined up that would be a perfect fit for that site.
Excellent. I'm going to take this next question. How should investors think about the capital required to build out the current development pipeline? So basically building an AIB Data Centers data center is very capital intensive, especially in the colocation development. It is roughly between that $10 million-$13 million of capital required per utility load. For example, a 65 MW utility load data center, as we mentioned, would be in that $850 million range. We've designed an optimized capital stack that is layered in terms of there would be a 65% debt financing position at the project level. Each of these data centers is developed within an SPE entity, and would be funded at that level, so any debt would stay off the PubCo balance sheet, and would be hosted in that SPE. So 65% debt position.
Of the remaining 35%, we would look to evaluate preferred equity offering or potentially bring in LP partners in the 45%-49% range with AIB as the PubCo, assuming the GP position of 51%-55%. The next question is: How do you think investors most Or what do you-- Sorry. What do you think investors most misunderstand about AIB Data Centers today? Jerry, I'm going to give you that one. That's an interesting one.
Yeah, listen, we have been public for barely six months. I think it's not even misunderstanding. It's like nobody knows us. We need to obviously increase awareness. That's why we're doing this webcast. But I believe we have put together an amazing team that have executed large projects before. Not only raising large amount of money, but also put together a procurement team, construction team to deliver that data center capacity everybody wants on time. I believe we are traded well below the peers. As we pointed out, we are just under $2 million per contracted megawatts. Our peers average about $20 million per megawatt. So, if you believe in the team, the ability to execute, in team's ability to acquire power and get more power, AIB will be a great investment.
Awesome. Thanks so much, Jerry. I think that concludes the Q&A session. Just wanted to thank everyone for joining today, and it's been our pleasure to be able to speak to everyone.
That concludes the AIB Data Centers Inc's presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.