Summary of J.P. Morgan Communications Infrastructure Conference Call Industry Overview - The data center industry is experiencing significant growth, driven by AI demand, with incremental capacity builds doubling from the previous year and expected to continue increasing in 2026 [1][4] - The market is segmented into enterprise colocation, traditional wholesale, and dedicated AI/cloud hyperscale builds, with robust pricing trends anticipated for colocation and wholesale services [1][3] Key Insights Data Center Capacity and Demand - For 2025, global data center capacity is projected to increase by 12.6 GW, reaching a total of 59.0 GW, which is a 27.1% year-over-year increase. Demand is expected to reach 86.8 GW, up 23.8% globally, resulting in a supply-demand gap of 23.7 GW [3][22] - In 2026, global supply is estimated to grow by 17.5 GW, a 29.6% year-over-year increase, with 11.0 GW coming from the U.S. [3][5] AI Infrastructure and Projects - The report highlights that AI-driven demand will continue to dominate the data center landscape, with mega-scale dedicated AI projects expected to be significant contributors to capacity growth [4][29] - The ongoing AI race is still in its early stages, and while the ultimate outcome is uncertain, industry capacity remains constrained [1][4] Towers and Leasing Revenue - The outlook for towers in 2026 is challenging due to issues with EchoStar and DISH, but there is potential for organic growth acceleration as the year progresses [3][4] - Domestic organic tower growth is projected at 1.9% in 2025, increasing to 3.9% in 2026, with total macro U.S. new leasing revenue estimated at $314 million, flat compared to 2025 [3][4] Challenges and Constraints - The data center industry faces several challenges, including long equipment lead times (18-24 months), skilled labor shortages, limited utility power availability, and elevated construction costs [6][10] - The rise of AI workloads has led to significantly higher power requirements, straining the data center capacity supply chain [6][19] Future Projections - By 2028, the supply-demand gap is expected to widen to 30.6 GW, with demand projected to reach 105.1 GW while supply is estimated at 74.5 GW [14][22] - The report anticipates that dedicated AI hyperscale projects will add approximately 5.3 GW in 2026, accounting for 48% of incremental U.S. capacity [31][34] Investment Opportunities - The emergence of AI-tailored hardware, such as Google's TPUs, is expected to drive additional demand for cloud on-ramps and enterprise colocation deployments [8][9] - Companies like Amazon, OpenAI, Meta, and Microsoft are making significant investments in AI infrastructure, which could lead to increased demand for data center capacity [36][40] Conclusion - The data center industry is poised for substantial growth driven by AI demand, but faces significant challenges that could impact capacity delivery and pricing dynamics. Investors should closely monitor developments in AI infrastructure and the associated supply-demand landscape to identify potential opportunities and risks.

The data-center provider's terrible six-week slide picked up speed when a famous short seller piled concerns on top of delays. ...

Core Insights - The company, Riot Platforms, is transitioning away from Bitcoin mining to focus on becoming a data center operator, which has led to a significant drop in its stock price [1][5][6] - Despite reporting strong earnings six weeks ago, the announcement of this transition has created uncertainty among investors, contributing to selling pressure [5][7] Company Developments - Riot Platforms reported record revenue and earnings per share (EPS) of $0.26, exceeding estimates [5] - The company plans to develop two buildings at its Corsicana data center campus, which will provide 112 MW of critical IT capacity [6] - Key achievements facilitating this transition include acquiring additional land, completing campus design, finalizing the basis of design for standard builds, and building an in-house data center team [6] Market Reaction - The stock price of Riot Platforms closed down 10.4% on a recent trading day, reflecting investor concerns about the transition and broader market conditions [1][2] - The market capitalization of Riot Platforms is currently $5.7 billion, with a significant gross margin of -1168.45% [2] - Investors are cautious due to the high costs associated with building data centers and concerns about financing in the current financial environment [7]

Ford is starting a battery storage business to power data centers and the grid https://t.co/2BJ87kEHYs ...

AUSTIN, Texas, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced the appointment of Stephen Bolze—an accomplished global executive with more than three decades of leadership across the energy and infrastructure sectors—as an independent director to its Board, effective January 1, 2026. "We are delighted to welcome Steve to our Board of Directors," said Mary Hogan Preuss ...

Core Viewpoint - Fermi (FRMI) has experienced a significant collapse in its stock price due to the withdrawal of a major counterparty, which has contributed to a 63% decline since October, highlighting valuation issues and challenges in capital raising [1][2][3]. Company Analysis - Fermi's market capitalization was $18 billion while it had only raised approximately $2 billion in total capital, indicating a severe valuation mismatch [2]. - The company faces the daunting task of generating $9 in value for every dollar raised, which is nearly impossible without flawless execution [3]. - The loss of the primary tenant raises concerns about the viability of Fermi's data center campus, although there may be other potential tenants [1][21]. Capital Raising Challenges - The ease of raising capital in hyped sectors often leads to poor investment outcomes, as seen in various market bubbles [4][5][6]. - Founders often benefit financially from capital raises regardless of long-term performance, creating misaligned incentives [6][7]. - Fermi's capital structure is challenged by significant dilution of equity investors due to management receiving shares at low prices [16][17]. Market Conditions - The current market environment shows that while there is high demand for data centers, Fermi's situation is complicated by the loss of its major tenant and the need for additional capital to build out infrastructure [21][25]. - The upcoming expiration of lock-up periods for shares may lead to increased selling pressure, further impacting the stock price [23]. Future Outlook - The bullish case for Fermi hinges on its ability to secure expedited access to power and attract new tenants, but significant hurdles remain, including the need for billions in additional capital [24][25]. - Despite the recent price drop, Fermi is still considered overvalued, and a bearish outlook persists until the valuation aligns more closely with future revenue potential [26].

AI Boom & Data Centers - The AI boom is considered real, and the focus should be on when it will end rather than if it's a bubble [1] - Debt is fueling the AI cycle by financing the data centers needed for AI compute [2] - Every AI company claims increased compute leads to increased revenue, which could indicate whether or not a bubble exists [2][3] - The ROI from AI investments is currently present, with consumers and enterprises deriving value [3][4] - Demand for data centers is high in the private markets [5] Private vs Public Markets - Private markets show broader enthusiasm for AI compared to public markets [6] - There may be more scrutiny and differentiation between potential winners and losers in the public markets [6] IPOs & Market Conditions - IPOs offer benefits like capital raising for data center construction and providing liquidity to employees, founders, and investors [9] - The market needs sufficient capital formation and secondary/exit liquidity to meet the needs of AI companies [10] - After a Q1 hiccup, the IPO market has largely returned to normal, supported by a stable/cutting Fed and a public market up 17% year-to-date [10][11][12] - IPO volumes are up 18% this year, with total proceeds up 89% [12] - The average IPO is up 30% this year [12]

Core Insights - EdgeMode has entered into a Memorandum of Understanding (MOU) with Supermicro and Krambu to enhance the deployment of sustainable, high-performance AI data centers [5][6][9] Group 1: Strategic Collaboration - The collaboration aims to establish a framework for deploying EdgeMode's large-scale AI data center portfolio, leveraging Supermicro's server technologies and Krambu's expertise in liquid cooling and sustainable design [5][6] - The MOU focuses on a coordinated supply and deployment model for high-density server and GPU infrastructure, reducing procurement risks and shortening deployment timelines [6][7] Group 2: Infrastructure and Sustainability - The partnership emphasizes energy efficiency, with Krambu's liquid-cooling systems enabling higher rack densities and lower power usage effectiveness (PUE) [7][9] - The integration of renewable energy sources and waste-heat recovery systems is designed to transform sustainability into a cost-saving operational model [7][9] Group 3: Future-Ready Data Center Model - The collaboration combines hardware, infrastructure, and sustainability engineering into a unified delivery framework, supporting faster market entry and scalability [7][10] - EdgeMode is positioned as a next-generation data center operator, focusing on AI and high-density compute rather than traditional colocation services [7][10] Group 4: Next Steps - The parties will work towards a definitive agreement and detailed implementation plans, with the MOU being non-exclusive and primarily focused on confidentiality and procedural provisions [11]

FORT LAUDERDALE, Fla., Dec. 15, 2025 (GLOBE NEWSWIRE) -- EdgeMode (OTC: EDGM), a global Energy and AI data center infrastructure company, today announced it has entered into a Memorandum of Understanding (MOU) with Supermicro, a global leader in high-performance and energy-efficient server technologies, and Krambu Inc., an advanced data-center infrastructure company specializing in liquid cooling, industrial symbiosis, and sustainable design. The collaboration establishes a strategic framework to support th ...

Core Insights - Data centres are significantly driving global electricity demand, projected to consume 945 terawatt-hours by 2030, which is about 3% of global consumption [4] - The energy industry is adapting to meet the rising demand from data centres through various strategies, including co-locating data centres with power generation facilities and negotiating long-term power purchase agreements [2][3] - The relationship between data centres and energy sources is complex, with gas and coal expected to meet over 40% of data centre electricity demand until at least 2030, while renewables are anticipated to increase their share significantly [7][8] Group 1: Data Centre Demand and Energy Supply - Data centres are becoming a major driver of electricity demand, expected to use more power than all other energy-intensive industries combined in the US by 2030 [4] - The rapid growth of data centres is complicating the energy transition, potentially delaying the retirement of fossil fuel capacity due to increased reliance on gas [7] - Hyperscalers are major buyers of renewables and are investing in energy storage and advanced grid technologies to support their operations [8][9] Group 2: Energy Transition Challenges - The power industry is facing challenges in meeting the energy needs of data centres, as energy systems often take longer to develop than the centres themselves [3] - Gas-fired power is seen as a solution for grid stability, but the gas industry is struggling with supply issues, leading to delays in turbine deliveries and increased project costs [17] - The renewable energy supply chain is facing pressures from tariffs and trade policies, which could hinder deployment despite the growth in solar module production [19][20] Group 3: Nuclear Power and Future Projections - Nuclear power is emerging as a viable option for co-locating with data centres due to its stable load profile, with small modular reactors (SMRs) being particularly promising [11][14] - Policy support for SMR projects is increasing, making them more bankable and likely to be deployed for data centres in the coming years [13] - GlobalData forecasts that at least 3GW of additional data centre-linked SMR capacity will be commissioned in the next three years, with nuclear deployment peaking between 2031 and 2035 [14] Group 4: Grid Infrastructure and Storage Solutions - Despite investments in transmission and distribution (T&D) infrastructure, power grids are still struggling to keep pace with new capacity, leading to longer interconnection queues [25] - Grid reforms are being implemented to ease constraints, with various countries updating regulatory rules to streamline connection processes [26] - Energy storage, particularly battery technology, is becoming essential for modern power systems, with significant increases in capacity expected in the coming years [30]