A：The main topics of discussion in the fiscal first quarter 2027 conference call include an update on the company's vision, strategy, and execution; an overview of the company's current contracted revenue and focus on campus expansion; details on the design, build, deployment, and operation of AI factories; the company's strategy to build large sustainable AI factory campuses and sign durable, high-quality long-term contracts; and priorities for expanding existing campuses and capturing premium pricing as demand grows.

A：The company's strategy for campus expansion involves selectively adding new locations and focusing on execution to bring contracted capacity online for customers. The expected outcome is to place over 250,000 MW of expansion leases by the end of the calendar year, with materially higher pricing compared to prior leases, as the company expands its existing campuses and seeks to lock in premium pricing. This is expected to unlock significant and underappreciated embedded value in the campuses.

A：The significance of the long-term power purchase agreement entered into by the company in North Dakota is to expand its power position and ensure a reliable and cost-effective energy supply for its AI factory developments. The agreement with Base Electron for a 1200 MW natural gas facility expected to begin deliveries in 2030 is a strategic move that supports the company's model of sustainable growth and underlines the importance of energy availability for large-scale AI factory development.

A：The company has entered into agreements for dedicated generation at the scale of their campuses in North Dakota. By the end of the calendar year, the campus will have 300 MW of total critical IT online capacity, which is a 150% increase in delivered capacity at the data center alone, making the company substantially ahead of its closest competitors in terms of delivered capacity.

A：The company is developing campuses with substantial expansion potential in Louisiana and Alabama and has signed an agreement for up to 1 GW of potential power capacity in Finland. The focus remains on executing domestic projects, but select European markets are seen as attractive opportunities to extend the platform over time.

A：The company has funded the construction of the third HPC building at Polaris Sports One and repaid a 300 million bridge facility. The remaining tranche for the final 150 MW building at Polaris Forged One is fully funded through 2031. The company is also benefiting from a lower cost of capital and plans to refinance operating buildings into lower cost markets.

A：The HPC hosting business generated $262.6 million of revenue, consisting of $65.8 million of base rent, $183.5 million of tenant paid out services, and $13.3 million of tenant recoveries. This was an improvement from the prior year quarter, driven by a favorable power pricing and the data center hosting segment generated $37.8 million in revenue.

A：The company's revenue for the quarter was $114.7 million, with an adjusted EBITDA of $64.4 million, up from $500,000 in the prior year quarter. The HPC hosting business had an NOI of $24.9 million, and the company ended the quarter with approximately $2.9 billion in cash and cash equivalents and $6.4 billion in debt.

A：The perceived risks are viewed as a strategic advantage for expanding at existing campuses due to the control of land, power and interconnections, secured permits, established fiber workforce, and local supply chains. The established relationship with the community also plays a crucial role in the strategy.

A：The company's strategy involves expanding at existing campuses that are supported by the community, leveraging the value of the land, power, and interconnections which have a longer lifespan than the leases. They are committed to doing it the right way and are confident in their ability to grow, evidenced by their track record of executing and delivering for customers.

A：The speaker believes that as new data center development becomes more difficult in certain markets, the power and community support campuses become scarcer, which in turn increases their value and creates meaningful barriers to entry, supporting stronger economics, expansions, and renewals.

A：The long-term value of the assets is tied to their ability to outlast any single lease term. The power, interconnection, and community support behind these campuses have the capacity to last much longer than any lease. The likelihood of renewal is high, supported by strong pricing and the ability for tenants to refresh technology within the same facility for decades.

A：The Ellendale project in North Dakota has led to significant economic benefits for the community, including the creation of local jobs with high incomes, investment in infrastructure and services, and tax revenue funding schools and emergency services. The community has seen local revenue grow from $400,000 to nearly $4 million.

A：The Polaris Sports campus was named Project of the Year by the Mid America Economic Development Council for its economic impact, community investment, partnerships, and technological innovation. The company has invested directly in the local community, contributing to organizations and projects like funding a new sheriff's deputy, ambulance, fire trucks, computers for schools, and repairs to community centers.

A：The company's current approach involves being the first mover in North Dakota, owning the land, designing, building, and operating AI factories through partnerships with companies like Base Electron, and having visibility into the power that feeds their operations. They are confident in their ability to grow and are welcoming opportunities to expand.

A：North Dakota is perceived positively, with established hyperscalers and new projects indicating receptivity. There are multiple conversations with tier 1 hyperscalers for additional capacity, and the state's framework for data centers makes it an attractive place to operate. Everyone involved is aware of the expectations and process, which contributes to the state's attractiveness for data centers.

A：The company focuses on rate environments around 50 to 100 basis points and does not underwrite leases where a 100 basis point move would impact economics significantly. They aim to refinance within a year or 200 years with minimal penalties. Post-construction phase, they can lower costs quickly into more permanent financing.

A：The Finland project includes an initial power option in 2028 with potential for additional power scaling up to a gigawatt. There are break points for additional power with additional payments, but there's also an off-ramp to avoid those payments. The company views this exposure as minimal and attractive in the European market, especially after spending 12 months looking into the market and evaluating around 30 to 40 different sites.

A：The company's fourth-generation data center design is highly flexible, incorporating lessons learned from hyperscalers. It is designed to accommodate various power densities and with maximum space inside the data halls for future flexibility. This design choice allows the company to build for a longer-term view, ensuring the data centers can operate for at least 15 years within service level agreements and potentially longer, as opposed to a quicker, less durable build approach.

A：Since the last call, the regulatory moratorium is benefiting the company, and from a demand perspective, the market remains extremely robust. There is a high demand for data centers, especially for immediate capacity, with operators pushing for projects to be completed by 2027. While demand remains strong, the timeline for delivery is extended into 2028 and 2029 due to the robust demand already secured for 2027.

A：The company anticipates materially higher rates for leases and new campuses in the first half of 2026 compared to existing contracts, driven by robust demand and supply chain constraints. However, when considering building costs in Europe, the company expects a similar cost to the U.S. despite potentially longer delivery timelines due to how the European market operates. The goal is to replicate the same supply chain and design-build approach in Europe as in the U.S.

A：The expansion plans for North Dakota include constructing 1.2 GW in Center, which will build significant capacity on the eastern side of the state, help with the expansion of the campus, and potentially serve Jamestown. The gas pipeline, which has been in the works for years and is now being approved and moved forward with, will enable expansion capabilities at Center and across the state. The pipeline will allow almost unlimited capacity for expansion and will connect to the grid in a front-of-the-meter configuration.

A：To mitigate supply chain constraints, the company locked in key components of the supply chain with suppliers almost two years ago. In some instances, they even purchased full factory capacity output from certain factories for a four-year time frame to ensure availability of these key components. This early locking in of relationships and supply chain positions has been crucial.

A：'Premium pricing' refers to higher lease rates and potentially longer lease durations. Specifically, it involves 15% plus increases on the lease rate and could include longer durations on the leases. This strategy is seen as part of the premium pricing model for the future builds.

A：The new site in Finland was chosen for its positive local and community receptivity, similar to the sites in North Dakota, and the country has shown overall receptivity to data centers. The site is 30 km from a major hyperscale facility. As for power availability, 100 megawatts will be available in 2028, ramping up to full gigawatts by 2031.

A：To achieve the 4 GW goal by the end of 2030, the company must focus on ramping up construction and delivery capabilities, especially given their belief in their ability to scale up to 2 GW by the end of 2029. The steps include ensuring power is available from the pipeline, which includes additional capacity from Base Electrons coming online in 2030. The company has power in the pipeline and is confident in their ability to deliver on this goal, relying significantly on Base Electrons and focusing on construction and delivery capacity.

A：Chronos Scale is expected to ramp up significantly over the coming years, potentially reaching multiple hundreds of megawatts in capacity for applied digital data centers by the end of 2027. This growth strategy will involve large-scale hyperscalers and also focus on developing grid capacity. However, it is important to note that this is separate from the traditional high-quality tenant approach at large scale and will target smaller, grid-tied sites to bring online significant capacity.

A：The current agreement is specifically with Macquarie for the partnership in North America, and while there is an interest in discussing potential larger shares of customer workloads, the focus at this point is on the partnership within North America.

A：The change in workload mix has led to a more flexible approach to technical design in the data centers, with TFOs (Technical Design and Functional Specifications) becoming larger dollar amounts and accommodating a wider range of workloads. There's an increased mix of flexibility in the facilities to accommodate varied workloads including considerations for GPU and CPU, among other technology pieces.

A：The company is considering smaller modular builds and containerized solutions, such as edge compute solutions or 20-50 MW containerized solutions, as ways to secure data center capacity for smaller, more flexible needs. These solutions align with their strategy for securing capacity in a more modular and flexible manner.