Topic: HPC site marketing status and tenant discussions
Key points:
Barber Lake is primary focus for a single tenant (small pool); Black Pearl Phase 2, Stingray, and Reveille also actively marketed.
One potential tenant is looking at Black Pearl and San Antonio, with ~70 MW as the right amount.
Milsing (500 MW) expected to move toward interconnect this year, generating interest from larger tenants; no interconnect yet.
Stingray: sub-10 ms latency to Dallas; management sees more interest from middle-tier market (smaller MW requirements) than previously appreciated; likely to become a multi-tenant colocation facility.
Mgmt stance: Neutral – actively marketing multiple sites but notes hyperscalers prefer major metros; Stingray interest is encouraging but still in discussion phase.
Q7 — Christopher Charles Brendler
Topic: Barber Lake deal timeline, Fortress exclusivity, and power cost explanation
Key points:
Barber Lake progress described as “crab walks across a beach” – steps forward, sideways, back; some opportunities came close but ebbed and flowed.
Management is confident a deal will close this year, but prioritizes the “right deal” over the fastest; not managing for short-term trading mentality.
Fortress exclusivity is technically for “another month or so,” but management expects extension or has other financiers interested.
Average power cost estimate of $0.031/kWh (up from historical $0.027) is forward-looking, driven by Black Pearl (~$0.035 estimate); backward-looking cost of revenue hasn’t yet reflected this change because Black Pearl production is not yet fully ramped.
Mgmt stance: Bullish on deal outcome – confident in “pocket aces” and market interest; neutral on power cost – expects to potentially beat the $0.035 estimate but acknowledges it’s an estimate.