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]

Business Development - Ford is launching a battery storage business [1] - The business aims to power data centers and the grid [1]

Core Insights - Digital Realty has appointed Stephen Bolze as an independent director to its Board, effective January 1, 2026, bringing over 30 years of leadership experience in the energy and infrastructure sectors [1][2] Group 1: Appointment Details - Stephen Bolze's extensive background includes leadership roles at Blackstone and General Electric, where he managed a $28 billion global organization in power generation and services [2] - Bolze's expertise in driving innovation and operational excellence is expected to support Digital Realty's expansion and capacity delivery for customers [2] Group 2: Industry Challenges - Bolze highlighted that power availability is a significant challenge for the data center industry, emphasizing the need for reliable infrastructure to support growing demand in the digital economy [3] Group 3: Company Overview - Digital Realty provides a comprehensive range of data center, colocation, and interconnection solutions, with a global footprint of over 300 facilities across more than 25 countries [4] - The company's PlatformDIGITAL® offers secure data meeting places and methodologies for managing challenges related to data gravity and emerging technologies like artificial intelligence [4]

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]

Core Insights - EdgeMode has entered into a Memorandum of Understanding (MOU) with Supermicro and Krambu Inc. to enhance its AI data-center portfolio through advanced infrastructure and sustainable technologies [1][2][4] Group 1: Collaboration Details - The MOU aims to explore a coordinated supply and deployment model for high-density server and GPU infrastructure, leveraging Supermicro's solutions and Krambu's expertise in sustainable design [2][3] - The partnership focuses on high-efficiency AI infrastructure and sustainable design, including waste heat recapture for various applications, aligning with global carbon optimization efforts [3][4] Group 2: Strategic Positioning - EdgeMode is developing a next-generation data-center portfolio that integrates renewable power and high-density compute capabilities, positioning itself as a leader in AI-ready infrastructure [4][9] - The collaboration enhances EdgeMode's ability to deliver energy-efficient AI compute solutions at scale, supported by Supermicro's technology and Krambu's sustainability expertise [4][6] Group 3: Implementation Framework - Supermicro will provide end-to-end AI compute solutions, while Krambu will manage infrastructure design and sustainable practices, including liquid cooling and waste-heat reuse [6][7] - EdgeMode will act as the purchaser and operator, integrating advanced hardware into its expanding 1.5 GW AI-focused data-center portfolio across five strategic sites [6][9]

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]

Group 1 - The company, 3 E Network Technology Group Limited, has signed a Master Services Agreement with Orka Technologies Oy to develop an AI data center project in Finland, marking its expansion into the global data center construction and hosting business [1][2] - The project will have an initial capacity of 6MW in the first year, with a commitment to deploy an additional minimum capacity of 10MW annually in subsequent years [2] - The company will establish a wholly-owned subsidiary in Finland to manage the project, while Orka Technologies will provide local resource integration and strategic support [2][3] Group 2 - The CEO of 3 E Network highlighted Finland's stable power grid and cost-efficient green energy as key advantages for the project, enabling lower operational costs and scalable computing power [3] - The project is expected to drive sustainable revenue and support long-term profitability for the company, addressing the increasing demand for reliable AI computing resources in the region [3] - 3 E Network's business model includes a focus on AI infrastructure solutions and energy investment, with two main portfolios: data center operation services and software development [4]