Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 29

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 29
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, it became evident to us that the Lithium Valley Specific Plan was not going to be approved
in the time frame that we had planned for the start of our development. We now estimates it could be delayed twelve to twenty-four months
because of environmental studies that still need to be completed, community issues that need to be resolved, and local and state government
approvals that will need to be granted. The approval of the Lithium Valley Specific Plan would have changed the zoning of our site and
allowed us to proceed with our planned geothermal powered data center development. Due to this change and the uncertainty of when the
Lithium Valley Specific Plan will be approved, we did not renew our purchase option on the 315-acre site in July 2025. However, we are
still committed to executing a plan to build a geothermal-powered data center in Lithium Valley once the County approves the Lithium Valley
Specific Plan and we can contract new parcels zoned for data center development.

In
May 2025, we established TerraVolt Infrastructure, Inc. (TerraVolt) as a wholly owned subsidiary that will develop similar
clean energy-powered data center developments in other states with known favorable zoning for onsite power and geothermal
resources.

TerraVolt’s
solution is an innovative Infrastructure-as-a-Service (IaaS) platform (“IaaS Platform’) that will integrate a portfolio
of grid and behind-the-meter power with, construction-ready data center building sites that will
include utilities and fiber connectivity. TerraVolt plans to provide its IaaS Platform as a turnkey solution to hyperscalers,
colocation providers, and data center developers seeking to deploy new capacity faster than with traditional power
generation and transmission.

We
believe TerraVolt’s IaaS Platform will address energy challenges for the data center industry. With AI, cloud computing, and
high-performance computing driving exponential growth in electricity consumption, the demand for sustainable, clean energy-powered
infrastructure has become critical:

    ●
    The
    U.S. data center industry currently consumes 4% of all electricity produced and is projected to consume as much as 10% within the
    next five years.

    ●
    Grid-served
    power is becoming less predictable in both cost and availability, and the data center industry is seeking alternative power solutions
    that accelerate deployment timelines while meeting the critical demands for reliability, sustainability, and cost-effectiveness.

    ●
    Hyperscale,
    colocation providers, and data center developers