BlockchAIn Digital Infrastructure (NYSEAMERICAN:AIB) outlined its strategy to develop AI-focused data center capacity, emphasizing power availability, long-term customer contracts and project-level financing during a virtual roadshow led by CEO Jerry Tang and CFO Jolienne Halisky.
Tang described the company as a provider of the electrical and cooling infrastructure that supports AI computing workloads, including those associated with platforms such as ChatGPT and Claude. The company seeks land with available power, develops facilities and leases capacity to AI companies and neocloud providers under long-term agreements.
“We build the electrical cooling infrastructure behind the ChatGPT, behind the Claude, and other open source AI models,” Tang said. He added that the company generally seeks contracts exceeding 10 years.
Power-First Development Strategy
Tang said securing electricity is the primary constraint in bringing AI computing capacity online. He said projects require an electrical service agreement, power purchase agreement or, in Texas, a facility-related power agreement before a site can be marketed to prospective tenants.
AIB is focused on projects in the 40-megawatt to 90-megawatt range, which Tang characterized as “right-sized” developments. He said that focus can allow the company to deliver capacity within roughly 12 to 14 months after a contract is signed, compared with larger and more complex projects.
Since March, Tang said AIB has reviewed more than 60 potential U.S. sites. The company has 120 megawatts under contract, has signed a letter of intent for an additional 60 megawatts and is pursuing another 165 megawatts in earlier-stage exclusivity discussions, according to Tang.
The company prioritizes sites with a clear, contracted path to energization, as well as appropriate permitting and approvals. Tang said the company generally targets land with existing power infrastructure, although it may consider greenfield development if power can be delivered within approximately 12 to 18 months.
Nebius Contract and CLT1 Progress
AIB’s first announced customer agreement is with Nebius for its CLT1 project. Tang said the 12-year agreement followed an extensive diligence process involving the site’s power contract, AIB’s ability to execute, procurement of long-lead equipment, contractor arrangements and design requirements.
The company has begun decommissioning work at CLT1 and is working through local permitting, Tang said. It has also engaged an investment bank to arrange project-level debt and equity financing. Tang and Halisky said the customer’s escrow payment is in place, which starts the delivery schedule for the first data hall.
Tang said the first CLT1 data hall is expected in 10 months from the timing of the roadshow, which he identified as approximately August 2027. The second data hall is expected about 14 months from that starting point, or approximately December 2027.
Halisky said AIB has placed deposits and secured production slots for critical long-lead equipment, including backup generators, uninterruptible power supplies and switchgear. The company has also included liquidated-damages provisions in major purchase orders to address late deliveries, she said.
Financing Structure and Returns
AIB intends to finance CLT1 primarily at the project level rather than through common equity issued by the public company, according to management. Tang said minimizing shareholder dilution is a key objective.
Halisky said that, using an estimated $800 million total project cost for illustrative purposes, the company anticipates approximately $500 million to $600 million of debt or private debt, $100 million to $150 million of preferred equity and the balance funded with equity. She said equity from AIB’s follow-on offering has already been used for long-lead equipment, facility design and electrical components.
Tang said the company has received indications that debt financing could cover 70% to 80% of total cost at a high-single-digit yield, though he described the information as current market feedback from investment banks. He said AIB expects to complete financing within two months.
Management said CLT1 is expected to generate an 11%-plus yield on cost based on average rent over the contract term. Tang also said AIB expects lease rates on later projects could be higher, citing an estimated 10% to 20% increase in data center rental rates since negotiations began for the Nebius agreement.
Portfolio, Customers and Execution
Beyond CLT1, AIB is prioritizing DFW1 and DFW2, two Texas-area projects. Tang said AIB owns and controls DFW1, while DFW2 is under a letter of intent. Both sites have power contracts, land and preliminary designs and are being marketed to tenants, he said. The company expects DFW1 and DFW2 to be delivered by the end of 2027, while MSP1 is targeted for the first half of 2028.
Prospective customers are focused first on available power and then on the credibility of the development team, Tang said. He added that customers are seeking liquid closed-loop cooling systems that reduce ongoing water needs.
The company said it could manage construction at three to four sites simultaneously with its current contractor relationships. Further expansion would require additional general contractors, engineering and procurement partners, and project managers, Tang said.
Halisky said AIB also evaluates customer credit quality, parent guarantees and security deposits in lease negotiations. She said security deposits may equal one to two years of prepaid rent and can support early construction spending while debt financing is arranged.
Management said its focus remains on delivering projects on time and on budget. “It is power and execution, and we have got them both,” Tang said.
About BlockchAIn Digital Infrastructure (NYSEAMERICAN:AIB)
BlockchAIn Digital Infrastructure Inc is engaged in the digital infrastructure business, providing data center operations and high-performance computing services. The company offers power infrastructure, hosting services, and equipment leasing to customers involved in blockchain computing, artificial intelligence, and high-performance data processing. Its operations include leasing space, power capacity, and equipment within data center facilities, as well as offering modular digital asset mining containers and related hardware and support services.
