Emerging AI Infra: ERCOT base load classifications are out - scarcity expected to drive lease pricing higher

Emerging AI infrastructure developers have so far disclosed 8 GW of conditional base load and another 7 GW of conditional studied load classification from ERCOT. While the power pipelines of most AI developers remain reliant on the Texas grid, a conditional baseload designation provides greater near term visibility into power availability and project execution timelines. This also opens up the base load sites for lease negotiations and we would expect scarcity of base load sites to continue driving lease pricing higher. Of the total 8 GW of base load classification, over 5 GW is available to be contracted for AI deployments, including two gigawatt campuses with IREN (2 GW Sweetwater campus) and CIFR (1 GW Colchis). In our view, approved capacity is becoming increasingly valuable amid growing political scrutiny of new data center developments and capacity constraints driven by moratoriums and state level directives. Through the screening process, ERCOT has also reclassified some project