AES CORPORATION (THE) 
The AES Corporation
BofA: Power x Data Centers Mini-Conference
March 25, 2024
Safe Harbor Disclosure
Certain statements in the following presentation regarding AES' business operations may constitute "forward-looking statements." Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, accurate projections of future interest rates, commodity prices and foreign currency pricing, continued normal or better levels of operating performance and electricity demand at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth from investments at investment levels and rates of return consistent with prior experience. For additional assumptions see the Appendix to this presentation. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission including but not limited to the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' Annual Report on Form 10-K, as well as our other SEC filings. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Data Center Load Has Grown Significantly Over Past Decade; Explosive Future Growth Projections
US Data Center Demand1,
Capacity in GW
60 50 40 30 20 10 0
2023
2026
January 2023 Projections
1. McKinsey & Company.
2. Generative Artificial Intelligence.
2030
March 2024 Projections
à US data center demand grew by 10GW over the past decade, mostly met by renewable energy
à Exponential Growth Projections Add 35GW of demand by 20301, driven by GenAI2
à GenAI2 causing companies to scramble for more data center capacity, looking for first mover advantage
Large Technology Firms' Ambitious Sustainability Goals Drive Demand for Renewables and Customized Solutions
24/7 Carbon-Free
Energy by 2030
100/100/0 Commitment by 2030
100% Renewable
Energy by 2030
Net Zero Emissions by 2030
• Operations powered by clean energy every hour of the day
• Reached 100% of annual electricity match with renewables in 2017
• On all the world's grids, 100% of electrons, 100% of the time, generated from zero carbon sources by 2030
• On a path to powering operations with 100% renewable energy by 2025 (five years ahead)
• Asking suppliers to switch to renewable energy as well
• Global operations supported by 100% renewable energy
AES is the Leading Provider of Renewables Solutions to Data Centers Through Innovation and Partnership
Renewables Solutions
Cumulative Signed PPAs (GW) with Technology Customers4
GreenPPAs & VPPAs1
Shaped Energy
1. Virtual PPAs.
Tariff Sleeves2
LFA3 & 24/7 Matching
2018-2020
2. PPAs where regulated utilities, municipalities or electric cooperatives contract between AES and corporates.
3. Load Following Agreement.
4. As of December 31, 2023.
4.9
2021
2022
2023
AES' Reputation of Delivering on Our Commitments is a Key Pillar in Our Customer Centricity Approach
1.
Green Tariff Sleeve with Salt River Project Agricultural Improvement & Power District.
Future Growth Propelled by Generative AI Has Flexibility to Take Advantage of Competitive Renewable Resources
Top Data Center Markets
(Capacity in MW)1
Northwest,
Solar & Wind Resources2
Co-Location of Data Center Load & Renewable Generation for Less Latency Sensitive Data
Centers Can Meet Power Needs at Scale While Meeting Sustainability Goals
1. JLL, "Data Centers 2024 Global Outlook," June 2023.
2. NREL.
The Sector Will Need All Solutions to Meet Such Explosive Growth, But Renewables are the Clear Winner
Existing Fossil | Existing Nuclear | New Renewables | Emerging Technologies | |
+ |
|
|
|
|
− |
|
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We Believe ~90% of the 60 GW1 Demand by 2030 will be Met by Renewables (150 GW of Capacity)
1. Levelized Cost of Electricity.
Renewables Can Meet Around-the-Clock Needs When Combined with BESS, Grid Services & Emerging Technologies
Customer 24/7 Demand
Solar
Wind
Storage
Charge Discharge
Market Balancing
Energy (MWh)
150
125 100 75 50 25 0 -25 -50
0
1
2
3
4
5
6
7
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Average Day (Hour Beginning)
While BESS Will Continue Playing a Major Role in Supporting Renewable Penetration, We See
Rapid Expansion of Emerging Dispatchable Solutions in the Medium-Term
Takeaways
à Data centers and Generative AI driving enormous power demand
à Major technology firms have ambitious clean energy goals
à AES is the premier provider of renewable solutions for technology customers and others
à AES has unique competitive advantages that lead to long-term growth and outsized returns
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Disclaimer
The AES Corporation published this content on 23 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 18:22:06 UTC.
