Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 9

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 9
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 supporting the integration of variable renewables such as solar PV and wind.

According
to the IEA report, investment in geothermal is growing. Governments, oil and gas companies and utilities are among those looking for
investment opportunities in geothermal. If deep cost reductions for next-generation geothermal can be delivered, total investment in
geothermal could reach $1 trillion cumulatively by 2035 and $2.5 trillion by 2050. At its peak, geothermal investment could reach $140
billion per year, which is higher than current investment in onshore wind power globally. As a dispatchable source of clean power, geothermal
is also attracting interest from stakeholders beyond the energy industry, including technology companies looking to meet the fast-growing
demand for electricity in data centers.

Competition

The
competition in the data center industry is primarily driven by the increasing presence of small- and large-scale service providers globally,
and we will compete with numerous data center developers, and public and private owners and operators of technology-related real estate
and data centers.

The
key participants in the data center market with which we will compete are infrastructure developers, such as Tract, ScaleUp, Stream,
Quantum Loophole and Cloverleaf Infrastructure, and data center companies such as Digital Realty, Equinix, CyrusOne, QTS, Vantage and
Compass, among many others. In addition, we may face competition from other new entrants into the data center market. Many of our current
and potential competitors may have significant advantages over us, including greater name recognition, longer operating histories, pre-existing
relationships with current or potential customers, significantly greater financial, marketing and other resources, ownership of more
data centers and data centers that are more broadly distributed geographically, access to less expensive power, and more robust interconnected
hubs in certain geographic markets. All of these potential advantages could allow competitors to respond more quickly to new or changing
opportunities. In addition, once we are operational, if our competitors offer space, power and/or interconnection services at rates below
current market rates, or below the rates we are then charging our customers, we may lose potential customers or be pressured to reduce
our rental rates below those we are then charging or have modelled in order to retain customers when our customers’ leases expire.

As
a new entrant into the data center marketplace, we will compete against the larger, more established and better capitalized companies
that today control the majority of market share. We believe