A：Key achievements highlighted in the speech include being one of the first companies to recognize the demand for large-scale AI data centers, breaking ground on the first 100 MW facility, operating one of the only 100 MW directed chip liquid cooled data centers in the world, and achieving over $44 million in Adjusted EBITDA in the reported financials.

A：The first 100 MW building represents only one-tenth of the total capacity that Applied Digital currently has under construction.

A：The new investment strategy, which includes bringing two additional sites into the pipeline and actively marketing development sites in various locations, is expected to provide investors with visibility into the company's expanding development pipeline and future growth opportunities.

A：The strategic rationale behind the planned separation of the cloud business and its proposed combination with another entity is to position the cloud business to raise capital independently, create differentiation, drive accelerated growth, and ultimately deliver value to shareholders.

A：It is expected that revenues will trend significantly over the next 12 months as the 250 MW buildings come online.

A：The company has completed the majority of its equity and debt financing for its first two campuses, including a $2.15 billion private offering of senior secured notes to support a 200 MW critical IT load at its Polaris Forge 2 campus. It also secured a $50 million letter of credit and improved the credit support for the existing lease capacity, which is expected to help lower the cost of capital for future tranches.

A：The company believes it has a forward financing model with access to 4.1 billion in preferred equity from Aquari Asset Management, following a mutually agreed upon executed lease within investment-grade hyperscalers.

A：The data center segment reported an operating profit of 17.6 million for the quarter.

A：The cloud business was consolidated, resulting in reported revenues of Ed Ed million for the quarter. There was a non-cash write-down of the business due to reclassification from Held for sale, amounting to $59.7 million, leading to a loss of 52.2 million for the quarter.

A：The increase in cost of revenues was primarily driven by 18 million in tenant fit-out services, a 4.8 million increase in personnel expenses, a 100 million increase in energy costs, and a 200 million increase in data center expenses. These were partially offset by a decrease in 5.2 million in lease and lease-related expenses.

A：The main driver of net interest income for the quarter was a 19.3 million increase in interest income from money market accounts.

A：The company ended the quarter with $Ed Ed Billion in cash and cash equivalents, $Ed Ed Billion in debt with no significant maturity due in the next few years, and approximately $script script billion in equity.

A：There is a clear acceleration in demand for high-performance AI data center capacity, as evident from hyperscalers' aggressive investment, indicating one of the largest investment cycles in US history.

A：The significant investment cycle referenced is a reported increase from the largest US hyperscalers' annual capital expenditures from approximately 400 billion to 700 billion.

A：The purpose of the power plant being built by Base Electron is to supply power to the grid, initially with a capacity of roughly 1.2 GW of natural gas-fired generation.

A：The company's long-term vision is to build a dominant data center region in the Dakotas with multiple hyperscalers and expand in strategic locations across the United States.

A：The next financial milestone for the company's leadership team is to reach a 1 billion and 2 billion NOI (Net Operating Income) level, with new internal targets implemented for accountability.

A：The breadth of discussions with hyperscalers has not been quantitatively described, but the text suggests that the company is having discussions with multiple hyperscalers at every location they market.

A：The company's goal is to achieve a total contracted revenue of 70% from investment-grade sources. They currently have $11 billion from core WES and $5 billion from investment-grade hyperscalers.

A：Delta Forge 1 is potentially expected to be operational by mid-2027. The company is optimistic about signing the lease in the near term, but it has paused development on the South Dakota campus due to not obtaining the desired tax exemption. The company remains active on other sites and feels positive about the progress on the three sites in exclusivity with hyperscalers.

A：Spreads for single A investment grade are generally in the mid-two digits, while for double B, they can range from 350 to 450 basis points. The exact differential depends on various factors such as structure and contract specifics.

A：The trend has been that as time progresses, the ultimate value from the same properties continues to rise, indicating that extending these projects further can lead to greater value capture. The company is working through the moratoriums and is optimistic about progressing in North Dakota, citing evidence of economic benefits and positive impacts on rate payers and the grid.

A：Since the operational site in North Dakota has been in operation, it has saved rate payers about $31 million due to the efficient use of infrastructure and the company's campus development approach. This economic benefit has been recognized positively by the community, which has resulted in easier processes for future projects in the state.

A：The company's goal for total contract value this year is to achieve 70% investment grade and over that number. They aim to remarket four new campuses, with the possibility of five or six total campuses, and expect all these campuses to grow over time, potentially reaching 5 plus gigawatts of critical IT load across all campuses.

A：The company views expansion of current campuses as an advantageous strategy, as it is easier to either expand an existing customer at the campus or bring in other customers. This approach provides a clear path to significant growth and appears to be more manageable than continuously adding new campuses.

A：The decision to expand into new geographic areas like the South was primarily driven by the availability of power, which is the first consideration when choosing sites. Other factors include market density and infrastructure, the labor force, and business-friendly environments with supportive governors and legislatures. These new sites offer different labor forces and are more suited for building, unlike some West Texas locations. The company continues to prioritize grid power, and while they have looked at projects with 'powered land,' the preference remains for grid power solutions.

A：Revenue recognition for the first building at PSO is expected to begin on July 1. Not all six data halls in the building will be energized at the same time; some will be energized in July, with the full building energized by later in the year. The impact on financial results will be a step-up in revenue starting in the August quarter, with closer to a full quarter of revenue recognized in the November quarter and a partial quarter from the second building in the February quarter of fiscal 2020. This pattern will continue with additional buildings coming online.

A：The strategy involves tapping into excess power currently available in North Dakota, commissioning base electronics and power generation assets towards the end of 2028, and strategically adding grid power to make the grid more resilient and beneficial to all stakeholders, not just for on-site generation for applied digital data centers.

A：The base electron business model adds grid power to the system, rather than building on-site generation specifically for applied digital data centers. It is designed to enhance the overall grid, making it better and more resilient, and benefit all stakeholders and rate payers in the state.

A：Finalizing leases for power generation assets can be challenging due to differences in utilities and counterparties, each with their own nuances. There is no singular aspect such as terms or rates that have universally made conversations more difficult; rather, every lease has unique details.

A：Majority of the fit-out service revenue has already been recognized, with a small amount remaining for the first building and an expected ramp on revenue from the second building in the future.

A：The key requirement is finalizing the Energy Services Agreement (ESA) between the utility and the involved counterparties, which has been progressing as scheduled, including recent agreements on substation construction.

A：The strategic rationale is that the power generation business has a fundamentally different risk profile from the data center business. Therefore, structuring power generation outside of Applied Digital Data Centers allows for separate ownership and management, providing potential public trading for power generation exposure and keeping the different risk profiles distinct.

A：A decision has been made to make an announcement regarding the new hyperscaler deal for the remaining 100 MW at PF 2 when the deal is contracted, and it is expected that this will happen in the near term.

A：Yes, the margins for PF one and PF two sites are still in the high 80s to 90s, which is the range they have been operating within and what was previously shown in the presentation last fall.

A：Once the five-year Noi target is met and construction risks are removed, the cost of capital comes down, and the company will transition away from high leverage. The company aims to maintain a prudent leverage ratio of around 5 to 6 times Noi, balancing shareholder and stakeholder interests in the long term.