Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 5

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 5
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 will provide multiple
    diverse geographic routes of connectivity to our data center site.

    ●
    Linesight,
    a construction consultancy services firm (“Linesight”), to provide cost benchmarking of initial design concepts, and
    to assist with desktop pre-qualification of architect-engineering firms and construction managers.

Based
on the project assessment, feasibility and initial shovel-ready site plans that have been developed by HDR Engineering, and the benchmarking
of the project by Linesight against 25 other large data center developments in the U.S. over the last 24 months, we plan to develop our
635-acre site in Imperial County, California to support up to three million square feet of data center facilities that utilize 2 gigawatts
or more of baseload geothermal power. Our site will be zoned medium-industrial that is approved for geothermal power production and data
center use.

As
we move through the development process, we will continue to refine and finalize the courses of action needed to implement our business
plan and operations. As a result, our management has not fully determined our actual short-term or long-term capital requirements for
our initial project, which management expects to be substantial.

The
Data Center Industry

Demand
for data centers is intense for both more facilities and greater power availability. Based on several reports from CBRE, JLL and other
research firms, the data center industry is forecasting that data center capacity will triple within the next five years. In the fourth
quarter of 2024, every data center under construction was pre-leased from two to five years in advance of occupancy. It is widely acknowledged
that the key constraint for the growth of data centers is the availability of power. To illustrate the power demand, today’s data
center developments start in increments of 100MW, while mega-campuses of 1GW or more are currently in construction.

According
to a recent report by Bloom Energy, the “2025 Data Center Power Report”, demand for power in the U.S. is growing at
an unprecedented rate after 20 years of flat demand. U.S. power needs are projected to rise by 83 terawatt-hours (TWh) in 2025 –
the equivalent to powering an additional 7.7 million homes. According to such report, data centers are the largest driver of this growth.
The U.S. is expected to see the highest share of new data centers outside of China. Since 2020, the U.S. colocation data