Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 7

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 7
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 2028.

According
to a report by P & S Intelligence, a market research firm, the data center industry is large and on pace to grow rapidly, from $282
billion in 2024 to over $602 billion in 2030. The industry is not only large, but also very profitable. According to the Dgtl Infra report
“Data Center REITs, Stocks and ETFs: Investing in 2024”, in February 2024, the principal data center developer/operator
companies averaged EBITDA margins of 50% or more on lease revenues. Those that are publicly traded were valued at an average of 25 times
EBITDA.

According
to a February 2025 report by PwC (Pricewaterhouse Coopers LLP) on the “Economic Contributions of Data Centers in the United
States,” data centers have become vital to the modern economy, underpinning digitalization, facilitating data driven decision-making,
and supporting a broad spectrum of industries and services. Their role in storing, processing and managing data is essential for organizational
success in the digital age.

According
to the PwC report, the total annual contribution of the data center industry to national employment - encompassing direct, indirect and
induced effects from data center construction and operations - has increased from 2 .9 million jobs in 2017 to 4 .7 million jobs in 2023,
marking a 60 percent rise over this period. The industry’s growth has notably surpassed that of the overall U. S. economy in recent
years. From 2017 to 2023, direct employment in the U. S. data center industry expanded by over 50 percent, compared to 10 percent growth
in employment for the United States overall during the same timeframe.

According
to PwC, the industry’s total annual contribution to national labor income surged from $209 billion in 2017 to $404 billion in 2023,
reflecting a 93 percent increase. The increase in labor income has outpaced the increase in employment, suggesting that the U. S. data
center industry supports higher earning jobs at the national level. Additionally, its annual contribution to U. S. value added, or gross
domestic product (GDP), rose from $355 billion in 2017 to $727 billion in 2023, marking a 105% increase. Over this same period, the U.
S. GDP grew by only 41