Core Insights - Three data center stocks experienced significant price increases following their latest financial results, with varying analyst sentiments regarding their future performance [2] Group 1: Lumentum (LITE) - Lumentum's shares surged nearly 24% on November 5 after the company reported earnings [3] - Revenue increased by 58% to $543 million, surpassing estimates of $525 million, while adjusted EPS reached $1.10, beating expectations by 7 cents [4] - Analysts express concerns that LITE may be overbought, with a consensus price target of just under $191 indicating a potential downside of approximately 21% [5] - Price targets from analysts vary, with Rosenblatt projecting a $280 target (16% upside) and B. Riley at $147 (nearly 40% downside) [6] Group 2: SanDisk (SNDK) - SanDisk has seen its stock rise nearly 500% over the past three months, with shares jumping over 15% on November 7 following earnings [8] - Revenue for SanDisk rose by 23% to $2.31 billion, exceeding estimates of $2.12 billion, and adjusted EPS of $1.22 surpassed expectations by 64 cents [8]

Core Insights - Schneider Electric announced a $373 million Supply Capacity Agreement with Digital Realty to enhance Uninterruptible Power Supply, Low Voltage Switchgear, and Pre-Fabricated Skids [1][2][3] - The partnership aims to address rising capacity demands and improve supply chain resilience, ensuring guaranteed capacity and economies of scale [2][3] - This collaboration reflects a strategic shift to meet the growing demands of the digital economy, particularly in the context of AI workloads and reindustrialization [3][4] Company Overview - Schneider Electric is a global leader in energy technology, focusing on efficiency and sustainability through electrification, automation, and digitalization [5] - The company operates in over 100 countries with a workforce of 160,000 employees and one million partners, consistently ranked among the world's most sustainable companies [5] Industry Context - The data center industry is experiencing a turning point due to increasing demand driven by AI and reindustrialization, necessitating a more resilient infrastructure [4][6] - The collaboration between Schneider Electric and Digital Realty is positioned to create a more agile and future-ready supply chain to support the next phase of growth in the digital economy [3][4]

Clean Energy & Data Centers - Geothermal power offers continuous clean energy supply [1] - Geothermal energy is well-suited for the constant power demands of data centers [1]

Core Viewpoint - Data center operator Blockfusion plans to go public in the United States through a merger with Blue Acquisition Corp, a blank-check company, in a deal valued at $450 million [1] Group 1: Company Overview - Blockfusion is a data center operator that is seeking to list in the United States [1] - The merger with Blue Acquisition Corp represents a significant move for Blockfusion as it aims to enhance its market presence [1] Group 2: Financial Details - The merger deal is valued at $450 million, indicating a strong investor appetite for data center operations [1]

Core Insights - CleanSpark, Inc. (CLSK) is transitioning from a Bitcoin mining company to a diversified digital infrastructure firm, focusing on data center solutions for artificial intelligence (AI) and high-performance computing (HPC) [1][11] Business Transformation - CleanSpark is leveraging its existing assets, including over 1.3 gigawatts (GW) of power and land across multiple U.S. states, to develop advanced data centers for the AI and HPC sectors [2] - The company is actively converting and expanding its sites for AI use, including a recent acquisition of a 271-acre site in Austin County, TX, with 285 megawatts (MW) of power for its first dedicated AI data center [3] Strategic Partnerships - In October 2025, CleanSpark formed a strategic partnership with Submer to design and construct efficient AI data centers across North America, utilizing Submer's immersion cooling technology [4] Growth Prospects - This diversification strategy positions CleanSpark to benefit from long-term growth drivers beyond the volatility of Bitcoin prices, with a projected revenue increase of 34.2% year-over-year to $1.04 billion for fiscal 2026 [5][11] Competitive Landscape - Competitors like Marathon Digital and Cipher Mining are also expanding into AI and HPC, with Marathon Digital piloting AI projects and acquiring a stake in Exaion, while Cipher Mining has secured significant lease agreements with Amazon Web Services and Fluidstack for AI computing capacity [6][7][8] Financial Performance - CleanSpark's shares have increased by 16.6% year-to-date, contrasting with a 9.7% decline in the Zacks Finance – Miscellaneous Services industry [9] - The company trades at a forward price-to-sales ratio of 3.17, slightly above the industry average of 2.95 [12] Earnings Estimates - The Zacks Consensus Estimate for CleanSpark's fiscal 2026 earnings indicates a year-over-year decrease of 43.2%, with recent downward revisions in earnings estimates [15]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue increased by 10.2% year-on-year, and adjusted EBITDA grew by 11.4% year-on-year, continuing a healthy growth trend since recovery began last year [4] - Adjusted EBITDA for the first nine months of 2025 grew by 15.4% on a pro forma basis after deconsolidating certain data center project companies [10] Business Line Data and Key Metrics Changes - The total new bookings for the first nine months reached 75,000 square meters, or 240 megawatts, with expectations to achieve nearly 300 megawatts for the full year, a significant increase from previous years [5] - Approximately 65% of the bookings in 2025 are AI-related, indicating a strong focus on AI infrastructure [5] Market Data and Key Metrics Changes - The domestic tech industry in China is at a critical juncture, with major players committing unprecedented financial resources to AI infrastructure, marking the end of a previous downturn [6] - The company has secured around 900 megawatts of powered land in tier one markets, suitable for AI demand, particularly for AI inferencing [7] Company Strategy and Development Direction - The company plans to adopt a more aggressive approach to new business while maintaining financial discipline, focusing on acquiring more powered land in cost-effective locations near tier one cities [9][19] - The establishment of a data center REIT provides a competitive advantage in accessing capital and monetizing assets efficiently [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming AI demand based on the development of domestic technologies and the ramp-up of local chip companies [7] - The company anticipates higher bookings next year, leading to growth acceleration thereafter, despite a subdued booking environment in Q2 2025 [15] Other Important Information - The CREET platform started trading on the Shanghai Stock Exchange, with units priced significantly higher than the IPO price, indicating strong market interest [10][11] - The company expects organic CapEx for the full year to be around RMB 4.8 billion, with net CapEx around RMB 2.7 billion after asset monetization proceeds [12][13] Q&A Session Summary Question: What is needed for the China market to reach an inflection point? - Management indicated strong market demand and significant investments from customers as key indicators, along with improvements in domestic chip efficiency and production capacity [18] Question: What is the new overall investment return with the CREET scheme? - The unit economics of data center investment in China are solid, with cash-on-cash yields typically around 11%-12%, and levered IRR well into the 20s [20][21] Question: Will new bookings include new powered land acquisitions? - Management stated that new bookings next year are not fully reliant on new land acquisitions, but securing additional land would enhance capacity [27] Question: What is the outlook on power quotas and potential difficulties in acquiring them? - Management expressed confidence in their established relationships with government and power companies, making it less challenging for them to secure power quotas [28] Question: What is the pricing trend and MSR outlook? - Management expects a 3-4% decrease in MSR over 2026 due to downward price resets and elevated movement levels, but noted that new build prices have remained stable [57] Question: How does the competitive landscape look? - Management emphasized that financial capability and access to capital markets are becoming critical competitive advantages, with the company well-positioned compared to competitors [60][61]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue increased by 10.2% year-on-year, and adjusted EBITDA grew by 11.4% year-on-year, continuing a healthy growth trend since recovery began last year [4] - Adjusted EBITDA for the first nine months of 2025 grew by 15.4% on a pro forma basis after deconsolidating certain data center project companies [10] - The net debt to last quarter annualized adjusted EBITDA multiple decreased from 6.8 times at the end of 2024 to 6.0 times at the end of Q3 2025, primarily due to cash proceeds from asset monetization [13][14] Business Line Data and Key Metrics Changes - The total new bookings for the first nine months of 2025 reached 75,000 sq m, or 240 megawatts, with expectations to achieve nearly 300 megawatts for the full year [5] - Approximately 65% of the bookings in 2025 are AI-related, indicating a strong focus on AI infrastructure [5] Market Data and Key Metrics Changes - The domestic tech industry in China is at a critical juncture, with major players making significant financial commitments to AI infrastructure, marking the end of a previous downturn [6] - The company has secured around 900 megawatts of powered land in tier one markets, suitable for AI demand, particularly for AI inferencing [7] Company Strategy and Development Direction - The company plans to adopt a more aggressive approach to new business while maintaining financial discipline, focusing on acquiring more powered land in cost-effective locations [9][19] - The establishment of a data center REIT provides a competitive advantage in accessing capital and monetizing assets efficiently [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming AI demand based on the development of domestic technologies and the ramp-up of local chip companies [7] - The company anticipates higher bookings next year, leading to growth acceleration thereafter, despite a subdued booking environment in Q2 2025 [15] Other Important Information - The CREET platform started trading on the Shanghai Stock Exchange, with units priced significantly higher than the IPO price, indicating strong market interest [10][11] - The company expects organic CapEx for the full year to be around RMB 4.8 billion, with net CapEx around RMB 2.7 billion after asset monetization proceeds [12][13] Q&A Session Summary Question: What is needed for the China market to reach an inflection point? - Management indicated strong market demand and significant investments from customers as key indicators, along with improvements in domestic chip efficiency and production capacity [18] Question: What is the new overall investment return with the CREET scheme? - The unit economics of data center investment in China are solid, with cash-on-cash yields typically around 11%-12%, and levered IRR well into the 20s [20][21] Question: Will new bookings include new powered land acquisitions? - Management stated that new bookings next year will not fully rely on new land acquisitions but will focus on securing additional powered land [27] Question: How does the company view the impact of the tightened power quota in China? - Management believes that their established relationships with governments will mitigate challenges in acquiring new power quotas [28] Question: What is the outlook for customers acquiring GPUs and ramping installations? - Management noted a strong positive view for future demand, but could not provide specific details due to the independence of Day One [33][35] Question: How does the company view the pricing trend and competitive landscape? - Management expects a 3-4% decrease in MSR due to downward price resets and elevated movement levels, while emphasizing the importance of financial capability in the competitive landscape [57][60]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue increased by 10.2% year-on-year, and adjusted EBITDA grew by 11.4% year-on-year, continuing a healthy growth trend since recovery began last year [4] - Adjusted EBITDA for the first nine months of 2025 grew by 15.4% on a pro forma basis after deconsolidating certain data center project companies [10] - The net debt to last quarter annualized adjusted EBITDA multiple decreased from 6.8 times at the end of 2024 to 6.0 times at the end of Q3 2025, primarily due to cash proceeds from asset monetization and deconsolidation of debt [13] Business Line Data and Key Metrics Changes - The total new bookings for the first nine months of 2025 reached 75,000 square meters, or 240 megawatts, with expectations to achieve nearly 300 megawatts for the full year [5] - Approximately 65% of the bookings in 2025 are AI-related, indicating a significant focus on AI infrastructure [5] Market Data and Key Metrics Changes - The domestic tech industry in China is at a critical juncture, with major players committing unprecedented financial resources to AI infrastructure, marking the end of a downturn and the beginning of a recovery for the data center sector [5] - The company has secured around 900 megawatts of powered land in tier one markets, suitable for AI demand, particularly for AI inferencing [6] Company Strategy and Development Direction - The company plans to take a more aggressive approach to new business while maintaining financial discipline, focusing on acquiring more powered land in strategic locations [8][9] - The successful IPO of a data center REIT in China provides a competitive advantage in accessing capital and monetizing assets efficiently [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming AI demand based on the development of domestic technologies and the ramp-up of local chip companies [6] - The company anticipates higher bookings next year, leading to growth acceleration thereafter, despite a subdued booking environment in Q2 2025 [14] Other Important Information - The company expects organic CapEx for the full year to be around RMB 4.8 billion, with net CapEx after asset monetization proceeds estimated at RMB 2.7 billion [12] - The effective interest rate has dropped to 3.3%, benefiting from the favorable interest rate environment in China [13] Q&A Session Summary Question: What is needed for the China market to reach an inflection point? - Management indicated strong market demand and significant investments from customers as key indicators, along with improvements in domestic chip efficiency and production capacity [18] Question: What is the new overall investment return with the CREET scheme? - The unit economics of data center investment in China are solid, with cash-on-cash yields typically around 11%-12% on new investments, and levered IRR well into the 20s [20][21] Question: Will new bookings next year include new powered land acquisitions? - Management clarified that new bookings will not solely rely on new land acquisitions, but securing additional land would enhance capabilities [27] Question: How does the company view the competitive landscape? - The company emphasized that financial capability and access to capital markets are becoming critical competitive advantages, beyond just land and power capabilities [60][61]

Core Insights - Blockfusion USA, Inc. and Blue Acquisition Corp. have entered into a definitive business combination agreement, which will result in Blockfusion operating as Blockfusion Data Centers, Inc. upon closing [2][7] - The transaction values Blockfusion at an implied pre-money enterprise value of $480 million, with an expected delivery of newly issued securities worth $450 million to former security holders at closing [3][4] Company Overview - Blockfusion, founded in 2019, operates a data center facility in Niagara Falls, NY, and is transitioning to a next-generation HPC/AI data center [3][4] - The company currently operates with 46 MWs of power and plans to expand to over 100 MWs to support high-density AI workloads [4][5] Market Demand and Strategy - There is a surge in demand for HPC and AI compute, driving the need for data center capacity, which Blockfusion is addressing by upgrading its facilities [4][6] - The Niagara Facility is strategically located for low-latency data transport and is surrounded by major tech companies, enhancing its appeal for HPC/AI deployments [4][6] Financial Projections - Post-transition, Blockfusion estimates potential gross revenues of $128 million and EBITDA of $75 million by 2028, increasing to $209 million in gross revenues and $132 million EBITDA by 2030 [4][24] - The company aims to provide Tier 3 power to colocation customers within 18-20 months from the start of funded building activities [5][24] Leadership and Governance - Blockfusion's management team has over 100 years of combined experience in data center infrastructure, with notable industry figures expected to join the board post-closing [4][6] - Blue Acquisition's leadership includes experienced professionals from investment banking and capital markets, enhancing the strategic direction of the combined entity [6][7]

3Q25 Earnings Call 19 November 2025 NASDAQ: GDS HKEX: 9698 0 © GDS 2016 DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or othe ...