Market Indices

The AI Datacenter Platform maintains specialized financial and operational indices that track key metrics for AI datacenter investments. These indices provide transparency, benchmarking, and market intelligence for industry participants.

Overview of Indices

GPU Lease Rate Index (GLRI)

Methodology

The GLRI tracks GPU leasing costs through a weighted index that considers:

• Hardware Specifications: GPU model, memory, interconnect
• Lease Terms: 1-year, 3-year, and 5-year contracts
• Geographic Regions: US East, US West, Europe, Asia-Pacific
• Service Levels: Bare metal, managed, and hybrid offerings
• Volume Discounts: Enterprise and hyperscale pricing

Index Calculation

GLRI = Σ(Weighti × LeaseRatei × AdjustmentFactori)

Where:
- Weighti = Market share weighting for GPU model i
- LeaseRatei = Current lease rate for GPU model i
- AdjustmentFactori = Geographic and service level adjustments

Current Components (2024)

Market Drivers

• AI Demand: Generative AI training and inference workloads
• Supply Constraints: GPU manufacturing capacity limitations
• Alternative Computing: Competition from custom ASICs and TPUs
• Cloud Provider Strategy: Major cloud providers' inventory decisions

Time-to-Power Scores (TTPS)

Methodology

TTPS quantifies power availability challenges through:

• Queue Position Analysis: Current interconnection queue status
• Grid Capacity Assessment: Available transmission and distribution capacity
• Regulatory Timeline: Permitting and approval processes
• Historical Data: Past project completion timelines
• Market Factors: Local power market conditions

Scoring System

TTPS scores range from 0-100, where:

• 0-20: Excellent power availability (less than 6 months)
• 21-40: Good availability (6-18 months)
• 41-60: Moderate constraints (18-36 months)
• 61-80: Significant constraints (36-60 months)
• 81-100: Severe constraints (60+ months or unavailable)

Regional Examples (Q4 2024)

Curtailment Stress Scores (CSS)

Methodology

CSS measures renewable energy integration challenges:

• Curtailment Rates: Percentage of renewable generation curtailed
• Grid Congestion: Transmission bottlenecks and constraints
• Forecast Accuracy: Renewable generation forecast errors
• Storage Capacity: Energy storage and grid balancing resources
• Market Rules: Ancillary service requirements and pricing

Impact on Datacenters

• Power Costs: Higher energy costs during curtailment events
• Reliability: Power quality and availability concerns
• Carbon Goals: Difficulty achieving renewable energy targets
• Backup Systems: Need for redundant power and storage

Regional Stress Levels

Power-Adjusted Yield (PAY)

Methodology

PAY combines traditional yield metrics with power-specific factors:

PAY = (Traditional Yield - Power Risk Premium) × Power Availability Factor

Power Risk Premium = f(TTPS, CSS, Energy Price Volatility)
Power Availability Factor = 1 - (Expected Outage Hours / Total Hours)

Components

• Base Yield: Traditional project IRR or cap rate
• Power Risk Premium: Additional return required for power risks
• Availability Factor: Expected power availability percentage
• Energy Cost Escalation: Expected increase in power costs
• Carbon Cost Impact: Potential carbon pricing effects

Market Applications

• Investment Analysis: Comparing projects across different power regions
• Risk Assessment: Quantifying power-related investment risks
• Portfolio Management: Diversifying across power risk profiles
• Valuation: Power-adjusted property and asset valuation

Using the Indices

Data Access

• API Access: Real-time data via REST API
• Dashboard: Interactive visualization platform
• Reports: Monthly and quarterly analysis reports
• Custom Analysis: Bespoke research and consulting

Integration with Calculators

The indices feed directly into our financial calculators:

• LCOC: Uses GLRI for GPU cost assumptions
• PAY: Incorporates TTPS and CSS data
• IRR: Adjusts returns for power risk factors
• DSCR: Factors in power cost volatility

Market Intelligence

• Trend Analysis: Historical index movements and patterns
• Correlation Studies: Relationships between indices and market factors
• Forecasting: Predictive models for future index movements
• Benchmarking: Regional and sector comparisons

Methodology & Data Sources

Data Collection

• Market Surveys: Regular surveys of industry participants
• Transaction Data: Actual lease agreements and power contracts
• Regulatory Filings: Utility commission reports and interconnection studies
• Public Markets: Listed company disclosures and market data
• Partner Networks: Data sharing agreements with industry partners

Quality Assurance

• Data Validation: Cross-source verification and outlier detection
• Methodology Review: Annual review by independent experts
• Transparency: Full methodology documentation and data provenance
• Feedback Loop: Industry feedback and correction mechanisms

Limitations

• Market Coverage: Some regions may have limited data availability
• Timeliness: Data collection and processing may introduce delays
• Market Volatility: Rapid market changes may impact index accuracy
• Regional Variations: Local factors may create significant variations

Note: These indices are provided for informational and analytical purposes. They should be used as part of a comprehensive due diligence process and not as the sole basis for investment decisions. Market conditions can change rapidly, and historical performance may not indicate future results.