Applied Digital (APLD) 28 Aug 242024 Q4 Earnings call transcript

Good afternoon, and welcome to Applied Digital's Fiscal Fourth Quarter 2024 Conference Call. My name is Shamali, and I will be your operator today.

Before this call, Applied Digital issued its financial results for the fiscal fourth quarter ended May 31, 2024, in our press release, a copy of which will be furnished in a report on a Form 8-K filed with the SEC and will be available in the Investor Relations section of the company's website.

Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins and CFO, David Rench.

Following the remarks, we will open the call for questions.

Glover Mr. Group Glover, Matt brief make begin, statement. introductory please we from will Gateway a Before proceed.

XXXX Great. everyone, Thank Call. Quarter and afternoon, Conference welcome to you, Applied Digital's Shamali. Good Fourth

remarks, formal we're laws uncertainties. statements may and their begins a today management we'd to of that making under remind forward-looking considered number like be involve some everyone securities and Before risks

cause our factors, caution results could As there of which that materially we differ forward-looking those actual number you in many a control, are from beyond result, a are of the which to described statements.

detailed to any events as after the with We made uncertainties, to to more required For Exchange any that occur by disclaim risks, statements assumptions or undertaking our forward-looking Commission. circumstances except and Securities relating date update filings or law. obligation forward-looking the reflect

We to you carefully Investor the earnings consider and metrics. on be will read reconciliation as these financial GAAP found our release, measures discuss also tables, metrics our website the our section of in can applicable in encourage you non-GAAP which Relations disclosures the

to limited you uncertainties under disclosures and on business annual our the XX-K, quarterly variable XX-Q. SEC Risk Form uncertainties our for but well refer descriptions and report for Form We filings our with and as including, circumstances, in Factors other to, as our risks not the detailed caption identified report on

Digital's via by available visiting recorded remind available website the You may a replay SEC everyone free being call get Applied of Exchange Relations the this section in be and is for Digital Security www.sec.gov. link made Applied Investor filings like that website. I and for at will would to Commission

Cummins. over turn CEO, to Digital's the like Wes? Applied and to I'd Now call Chairman Wes

their call. to purpose-built everyone. Matt, for growing Thank joining the conference to hard high-performance fiscal computing and supporting of good start and afternoon, providing work infrastructure industry. fourth mission want our our service to by quarter employees gratitude ongoing and XXXX you I expressing our Thanks, for rapidly

review Before financial developments CFO, I'd call to our like detailed our of over a recent for turning results, the some business. to across our David Rench, share

challenges business. During financial short-term our hosting business these construction with to that company setbacks, impacted faced progress our in the the initiatives, made of purpose-built HPC XXX-megawatt data center the quarter, services power key facility due the Despite cloud center outages our in the including significant we performance several Ellendale. and of our growth development data our has

executed with campus, for U.S.-based facility we announced, our and XXX-megawatt previously LOI Ellendale X current inclusive of a forthcoming our an hyperscaler As megawatts buildings. at XXX

provide will I Now an of update our business each on units.

by Let's center data hosting begin business. discussing our

facility. facility this expectations, achievement XXX-megawatt This at for consistently uninterrupted of marks uptime full full the quarter capacity Our operating met operation throughout the Jamestown quarter. consecutive with seventh capacity has

we While challenges Jamestown's are other facilities. with at encounter performance, we pleased

industry-leading North previously disclosed, end the caused had in XXX-megawatt starting facility equipment January, North American the which the we our By was components a transformers in from outage determined with successfully related transformer As failures. Ellendale power quarter, by and replaced Dakota we fourth manufacturers. of experienced

As transformers locations contracted center X megawatts North now replaced, result capacity a hosting in XXX we Dakota. our our fully clients of being have the across blockchain of for data

in business, exploring opportunities services experience to to AI our Let's and as contracts new our continues which computing growth move on our applications. fulfilling for segment pipeline. cloud in advance This high-performance power existing provides we

first online in quarter, the another the X clusters end quarter As we we and of the online, of XXXX. of clusters had X brought fourth

Ellendale, capacity due addition Lastly, for Dakota. development our Dakota. in should facility interconnected IT under provide which megawatts proximity capacity a This let our XXX X.X on have megawatts in the North North at an in to is currently low extended Jamestown, HPC me update of We HPC centers. campus allow to of across latency to data its

construction facility proprietary the cooled in specifically During highly make strides significant feature our most of efficient Dakota. to applications. first state-of-the-art will This for continued XXX-megawatt infrastructure, the cost-effective, in demanding designed high-performance we liquid quarter, the HPC Ellendale, computing North facility

We substantial XXX,XXX encourage visit of of progress I some square new you foot have facility. made construction the to in facility. the our images for website the recent

has details have by a of letter As executed of U.S.-based XXX-megawatt are tenant. entered project financing believe for capacity and the investment-grade this previously a technical mentioned, the finalizing will and site lease. This lease. for the location and due the hyperscaler now with followed be to finalize diligence a hyperscaler we the into completed intent their We on exclusivity working level

campus are and X Ellendale and lease marketing we totaling X.X project the additional We focused have started on campuses for financing gigawatts. finalizing

these in of power XXXX. campuses All have available

the allocating we strategically are confident and potential our remain to horizon achieve about committed are by across summary, are the shareholder returns In excited encouraged positive in trends trajectory. on and our the value. highest the numerous we to business and our witnessing We're risk-adjusted capital catalysts growth maximize

call CFO, now provide our With David update guidance. on an that, to walk our and I the over financials David? turn to through Rench, will you

Thanks, Wes, everyone. and good afternoon,

EBITDA by approximately me begin of Let reporting. financial this We complexity $X.X the reported adjusted quarter's of addressing an million.

Notably, at and which out facility a in right hosting power our financial of items quarter. significantly to online North performance largely portion in prior the was then impacted large end center data of the came the onetime several quarters. Ellendale, However, comparability our Dakota,

primarily we initiatives, expenses Additionally, related professional and data capital-raising service analysis many to our financial for incurred financing center transactions. onetime strategic

costs lost outages. revenues remedies transformer available to incurred continue We all and additional recoup pursue the from to

the fourth facilities the driven million was period compared of data the of fiscal $XX revenue our same to million Revenues XXXX. for the quarter. contributions XXXX the delve The cloud for quarter were service by into across increase center in capacity and results $XX.X hosting from expanded contracts. Let's primarily

contributed segment million. our Services center our hosting Cloud million $XX.X revenue, $XX.X data in Specifically, segment generated while

the $XX.X $XX.X hosting million of from fourth number the cost resulting to in XXXX, amounted fiscal to quarter of same up can megawatts be increased the increase higher energy it XXXX. to This revenues. used generate from revenue Turning for of million, to costs of attributed quarter

Additionally, of personnel due the growth depreciation facilities online. with more came amortization expenses, business as costs rose and to along the

supporting Selling administrative comparable start-up yet up of fourth quarter compared approximately $XX.X growth in XXXX of to fiscal the business. share. basic ramped cloud business. were year's expenses included loss the depreciation, a average service higher for to weighted The lease increase the $XX.X for amortization The or and we costs revenue assets personnel the net period. overall $X.XX prior was based per share diluted million to the calculation support million. primarily is million as the quarter fourth of on quarter general $XXX.X This $XX.X and well due million as and costs during of XXXX not This costs on as count the was fiscal

during the diluted XXX.X adjusted per for loss on fiscal million, a net during weighted of XXXX the and approximately was a $X.XX fiscal comparison, the share or based or of quarter and share $XX.X share approximately XXXX share In quarter of based million. net was fourth the a the $X.XX weighted quarter of count net count on basic $X.X average million basic loss non-GAAP average XX.X fourth loss, Adjusted measure of diluted per million. quarter for

EBITDA, I'm $X.XX for Adjusted of the or XX.X for by measure loss adjusted our compares largely net an fiscal the accelerated on of during XXXX, sorry, $X.X fourth the than -- the for another our to less driven to which fourth a adjusted fiscal share hardware. and significant quarter of schedule basic million adjusted net loss quarter. $XXX,XXX of of our of stood fourth count XXXX depreciation $X.X per XXXX This The at weighted approximately average per difference was quarter between EBITDA share GPU quarter based adjusted diluted million of million. earnings and non-GAAP is EBITDA adjusted compared

to Moving million in We we in along fiscal $XXX.X cash Garden funding and balance of restricted fourth secured settlement with Subsequent ended City from to our over cash, million and with debt. year-end, contingency. finances equivalents in million the $XXX cash, $XX.X the various quarter fiscal sheet. the the

additional that the the from of financing years align extending continue depreciation of for cloud the better business, of by will explore the with assets X the to life which We X the economics business to industry service norm.

project the I we on are would which level the like agreement hyperscaling. for Ellendale of U.S.-based the finalization we focused after HPC campus, financing lease shortly with reiterate to that to fund a expect

Wes to I'll closing turn call for over the remarks. Now

the our towards burden the this lease data our as a Fortune our a outage financing on and data multi-month a XX our will Thank lease cascading our substantial a securing to leader past asset-level have decade the center has Nevertheless, company company Ellendale Finalizing facility and long and cloud $X We funding secure sites. agreement for in challenges faced develop center of effect campus. understand HPC solidify business. you, year we've made the market to with progress ability position funding greater Ellendale additional a as seen than hosting David. at billion while financial has

lease financing release partner, this project continue parties. with work of to Throughout finance. toward anticipate multiple construction will diligently execution hyperscaler, facility we our the Upon process, ongoing we've while interested CIM debt with capital project-level worked secure for to support the additional our we to Group level

fully challenges committed significant despite delivering due to this largely remain to summary, strong long-term factors, value. we external In shareholder quarter,

become this is This actively to buildings, team, operating we're building X of HPC industry our To on platform of several data we continues vision, additional X multiple already campus development XXX with centers. will provide which campuses we capacity. working our starts vision today have of with totaling added our the veterans megawatts gigawatts. support are Our a marketing and capable and X.X design to Ellendale and next

proud into XXXX. of as this to made updates the we further and forward move are We providing incredibly look quarter progress fiscal

our questions. Looking as marked the in your We line QX believe now and we bottom improvements we sequential anticipate for the welcome revenues top quarter. first Operator? enter the ahead,

Instructions] [Operator

Pipes Securities. comes question B. of from first line with the Our Riley Lucas

campus. my completion wondered the remaining requirements on the if the capital first Wes, here? to to percentage could Ellendale you, and you first is the on HPC XXX I question speak megawatts And from

Lucas. Sure,

at So it early we X this do building, to sure $X progressing be then the with you've over XXX little I'm Tier megawatts, facility later center data we The capacity. on the as we're -- the stands into have enclosed, next so And MEP the first fully we'll some facility seen for billion over final roughly a year. video and $X -- is point, footage par go today. a back little is will million standard this of fit-out this $XXX with billion year, which

in finance talked in, the $XXX space. with typically project-level million the in think We're that And working I so banks past. I've this about with provide this

we've with. have and the moving And We expectation XX% that remainder to in this is the -- seen loan-to-cost to past finalization that just forward running we're from a term point. lease the at sheets finance bank actually quotations already XX% this, need is and we've we the level process fund selected project get the they'll

that So we'd hope to close shortly thereafter.

that that that up in out Wes, hear I of completion? did that would next would And include right terms you early of fit line? said frame Or year? time how kind it you

past Lucas, So we've gone at wants and through or talked There's not That's of the But next our ready facility locked our timeline, about for we've from when process. late being we schedule through perspective this here what this different timelines year couple a customer year. early point. work build then our service. there's there's completely ready as the build the is that in the in

Change quickly. topics really in

QX you quarter, you can the how speak revenue On business, QX to how versus fiscal just up the -- reported? the fiscal And QX many kind here that did would this have you just fiscal first in you ramp clusters frame services cloud opportunity online? your of period

Lucas. Sure,

in those So as it are online, the full be QX, believe, prepared it remarks, we in QX, said clusters there, where won't for so the June, I it. we came we're of and but online majority will be X in the for

on market. business revenue point. we're enterprise I've And about that with run up, We right our clusters is AI started $XXX focused rate X on focused on now, is the roughly very the team basis. very the this start-ups, an AI calls previous labs annual million enterprise with at market So the and the that on talked

we've have hired for X now. we've that CRO We that that's X very recently, probably months or it market. focused working new on on from IBM seen been And a came

see that. And the we'll so demand we to and there, continue ramp

that fairly it way it on working puzzle we're more that through have income today. does in statement putting been our The deployment, this a other here equipment finances piece versus what is of in financing we run the it makes place that this

a that you to we're want it X standard because demand, don't to just of the do see we lot of So market. because depreciation pieces currently are keep coming -- financials structure years capital of lease have then we with we of versus X adding the the forced from what enterprise the do to side but the does see X, or -- those industry demand growing the so together, but amount a significant really over still and two

line of Street Brown Capital. Rob Our Lake next question from with comes the

And terms Just how do the in of what's think the on X you think capital clusters, -- range that you business, you center grow on versus following I data up investment. the of think, can cloud about AI that do clusters, cloud of business into? AI sort business the

think these These mechanisms to both asset-heavy have both to in businesses. in the are way. place level businesses, On these of asset businesses, Rob, We same them. the about financing capital-intensive businesses for of do need we right

And that pretty it about extensively the data on about We We're almost so side. there. GPU talked center talked on side. the we've

almost I as there think we're well.

able asset sides when correct think both business. I financing we be in on place, so the level that grow mechanisms have significantly we'll of And to

it, data business, the On available we that can to aggressively. capital in business have the to in that through we for to see of with demand in and get significant portion go 'XX, as we we need business place generate the center but the we AI it us grow the right that cloud growth and base today what's capacity

Right to now, need company feeding we're down both and of an level from kind of financing we them, move a to asset level. that

I but process? the sort terms long contract Okay. And terms on the Great. just of are its in of the in the what technical are of percentage contract, and there I diligence, in the the timeline, you at the items then diligence, site assume, your -- getting hyperscaler lead completion assume due of through due

to handicap I of hard we're XX% way but It's the there. of that, north would say

question the Partners, comes Capital Darren next with of from line LLC. ROTH Aftahi Our

question of a I from the big on this up framework, lease like process. is this just regards in details versus lease. I following [indiscernible] the is other a is firm being Just small perspective, my the doing guess that to how out a much law larger picture ironed and in how actually this guess much backlog

That's question, a good Darren.

can So small details, as took power, far items, on large that as a small amount there's sometimes the and complete, is there's small fiber as items lot there. details. time to and very items around then extensive power, of of power process items redundancy the but connectivity, the long an significant there firm as take large a there's But

view to with So firm, details deal these and it's the but few most I the get there's only sometimes would split on say But the a question those, a -- of smaller it's hard that some the contracts. on of between take a it's funny, law longer.

is to just definitely how slowdown talk a I can't there, time is This first is much about or that. there backlog our so through. but And due out handicap

So only we've this the environment is experienced.

have those what's thoughts. just versus, other base Got And kind in campuses if that your two, compare the interest it. just wanted one, of campuses. one customer U.S. then marketing take those say, existing capacity diversify more they pipeline you with LOI I if where to process? your if propensity And that you and you of are more the your other on guess, hyperscaler will have the contrast down, to in

Sure.

for capacity. at we recently out on tearsheets there's critical these for at send still refined that but more focusing that on And we're We're campus, XXX-plus a Ellendale just -- sites of sites. sites. megawatts than would we have point these focused kicked process So I process, binders this we say, for hyperscalers least off, IT and are we've the pretty did

depending you're we're somewhere There's focus to that megawatts sites. customers we are country to these with market but So that we in, so the on a how is sites on. the equate between have pretty and part focused XXX XXX of new of customers market, going in types narrow go power, other the utility to to what of those of

line Northland comes question the Grondahl next Securities. Mike from of Our with

driving could Wes, run million, X what are annualized of kind revenue, repeat the through you clusters much how $XXX garbled. came heard a an you little said, rate but it I of

$XXX million $XXX to it's Yes, about Mike. million,

think you X about financing of kind stay in And what demand saying fair $XXX business, until million is, expect clusters Okay. you to you're see to but a hey, and place, growth. then better were million. to get for at summary? I going there's that you lot structure a more Is that would $XXX a of

better look Yes. see where on structure driven on earnings is our a summary because is That's are, at the those good versus mean working by of largely I accelerated schedule GPUs. -- we're and you that's our a where can financing you depreciation adjusted EBITDA kind

type financing the And And rather so have life than financing the us. allows us useful right we that need of two, that is for if to makes depreciate to during sense. the these period, at cost then one the over

that to talking And sure. development to X.X go do project kind for platform than one-stop big Could the side release, more the for end on think you're customer about? first the hyperscaler another gigawatts, a in the being is referred existing in shop them two? to or with HPC you you interested you from XXX of up potential them, this press to XXX Sure, megawatts

this a There's significant we from definitely especially in amount type market demand of the there's but could, other power. I for demand near-term customers. similar capacity, think well as

Ellendale. done that we have -- unless for power 'XX So power is XXXX

XXXX you our the and develop at power. don't key, power. think it. HPC, and reasons I near-term to talked facility, one we we is we least Again, for Now we're power need to of then facility believe the want that on way selling focused when right type But XXXX not power Texas the about have of works

need you So power. right the of type

power. on And near-term doesn't X.X focused the really Mike, we're clarify, X include So It additional to just just Ellendale. sites. the is gigawatts

But the well the significant customer the demand what like potential in others we're them, a there's power as on, I amount of near-term there. that's market as current for focused So market. think

of Craig-Hallum. line come question Sutton with next the from Our George

has call the on nothing one Wes, me statement. for surprised except

it's lease. go Can want the has clarify not up assumption just as fast the why you when statement? want to and live and mentioned we that's customer clear as are. get running humanly possible, with been might you're as you rapidly out You this that My to building as

Yes.

correct, to adding correct that's for for doing So George, when But way stages in different it. what fit-out, a far at you're as there's we're the as look this fit-out.

we'll a lot can we and fairly for of finished, mean I the there's save is parts So but that buttoned share there. details moving of down, that when it's this publicly.

the to you a a financeable, that structure It's gotten stand? pretty folks relative financing is level it's of more market lot about can gotten structure, that just the Kind And lot together GPU had a in from talk does where well putting our knowing Okay. interest understanding, there? better. you've of

Yes.

side. the level just are the process depends has correct and So down. grown the a data on while really, It offtaker center on we kind here, capital George, started you of come like cost has this of interest that and the the in ago, just

on a lot pricing offtaker. financing the the So depends

doing and And you your to highest significantly hyperscaler, deployment the it's labs enterprise lower. going AI then going market, lot a even and we're in been we'll entrants be into to ourselves. interest, are from have and seen and of costs go place structure successful that so think to a But is were going start-ups if then with new amount I seeing lower of significant And putting be we've in a for that there.

extent. name, want put on to that, And see this. are Is once together. saying enough to some names. the years we're So want we customer happy to fund clarify to a We just that the chicken-and-egg finance them you high-quality would provide to

of feel that of George, you gets as it's the kind is, show we and contracts in this typically, you -- that. and a is think cases, some and And that, bankruptcy what buy see drawdown contracts you'll structures of a as go go SPV do in well. And should GPUs facility then you that that like in a remote kind the put and place, It the equipment is into colocation customer form the into customer the go into go facility be contracts. the that loans into

kind it's financing so of And a solution. self-contained

& comes of with question John the line next Todaro from Company. Needham Our

you. for two Wes,

First, possible, to as due as just agreement. trying of that kind timeline much for diligence the lease

there mentioned of the Or now is they finalized had details. stages think are? just about and you final kind that you is requirements, you of how kind their some to stage technical So many down first would it really say

West City out you And yet. think didn't go of It then miners of done for trying that you hasn't Garden that second lot had HPC. question, down the mentioned Bitcoin site been the route. was a there Obviously, are suitable it Texas to kind

Just that would site you think possible did region, really curious that that, HPC. be it maybe for and why

state is in the load happen, previously is to process it's I last company, everyone the this that that for ERCOT lease characterize would at of learned of don't is of the details we're to think strategy. has is of had of type the for customers what we're on So serving. will mean, load when I through but the the the what side, a I don't you us, changes first changes it. legislature process legislature say looking goes that John, serve, of this that I say Texas have through be I even I for going finalizing kind again, And but process then large are would are structure that together. us, business. what that say, the with make our especially But of in the all kind market and we've on the seen we in suitable having all know customers think, kind flexible would I on in pursuing not way -- don't else been step that -- But their proposed know own flexible there the the harder I in for will large the we

you pursuing the feeds Texas station just drawing power So could build on in or moment. having the change firm the and of redundancy redundancy at anything there's of That or into and state UPS from. you're like in future. what not gen, lines backup right redundancy now, the different power site, directions But from in we're not multiple switching the substation that or power power,

and of in on lot locking bullish that learned a Texas. the There's of just specifically large in pieces we I'm that's state of load through we've type and up process, that -- that marketing, there's but the up not the have going locked sites this flexible are

next question of Wainwright. our And comes from Kevin line with the H.C. Dede

X.X the overall targeting if to how characterize wondering just environment versus little take Understand could that are And What's the environment. a confident you're competitors. your wins was time I gigawatts. like? you Applied you competitive

Sure.

there's So parts to two that.

near-term earlier, from demand very we environment, as I strong So the see for mentioned power.

on we're can end through of power So come very focused 'XX. that the online

but a And And supply second believe that's part. the chain. is supply components at bottleneck I through the the #X chain. those, of in you then bottleneck, are there when #X to back stretched it's I'm step the happy to is power moment. what So walk lot the

A for key build had the things our for a last chain. of have first experience of center switchgear in ordered we -- bought the year, these. are components that transformers, we build supply significant line places the we a to So needed lot lot amount we of the data in

both we're the position from in I those kind dynamics. So of great those of X are think pieces. And a competitive

demanding I us that North a think these find bring sites, for to in and company through that and what them our is we're getting as Dakota ability companies be biggest doing thing go and validates them first something large for and the online very lease companies. develop this will

been competition hyperscalers the in a already, competition that there's of data see We the for our being lot even. of center years for have And so market. decade companies private majority building

are there's or see some hundreds of of out power So cases, as those And for a a in ones hyperscalers. those majority in handful platforms out there market. building that the over the we the that megawatts competition the gigawatt are of of

new data this market. a So is style center. not It's a new just necessarily of

go up that you bid to private doing these competition? foot to little would been win and site has, bit we see that have other this you longer you contract? in companies a as should up for you're a believe Applied have Well, that a than going that why Why

look understand be companies So have is historically way they I that wants and historically been industry market in for typically think want has it's data important to the the when region the to a we -- that in. they historically been the build that of this have kind company center to new capacity,

I'm let's say, in Dallas. sitting So

they want be say Dallas. to Let's in

on of can there's in fiber really data you And tools space locating license so different the tools that the DFW for couple area. And focus a those center maps.

estate do find then on a type that will you'll need the request then of the location you'll power. a and and real is And so what match it fiber available to and purchase connectivity then map, utility you for make location, basically the

these And style so in power facilities. some stretching the still of power, a requests now of what's for amounts over most companies needed cases, a happened doing are in out lot to new at those in X-plus and power the market markets popular queue is but that that, are goes going and get that XX especially the years is you're that before in

And the gating so item. that's big

we make and powers availability then the the development. kind We can of about type go our the type we power power that for on it inverse us of that, used hand, Now be other find of that way. sure

our other connectivity redundancy. did Ellendale latencies like start there. fiber what of we site on locations. that even we kind can So or is And marketing before refined in we then further the we've locations. and developing sure to of include mentioned either then that now that I've go different And make to And some

about look if So of path few I along, this is back that think way XXXX. companies in goes history, we're this unique down that far and the at our you one in it started we

this, And few years a about the months to of about so knowledge last go in how we company our and X doing this. has the now went inside experience have up level dramatically

sites think or at power us of availability advantage. really fiber of the just the of right what power gives the So the right an kind connectivity type I right and of type with

rocks concern fair latency. say Would under and it's you're on looking that you with more less to locations also think perhaps rural

sure, mentioning are, we in a about and requirements. about we it, earlier traditional what definitely center I on We've we way. it about what the the tightened companies go very know bands different for latency how of kind that's about So was go data

we're necessarily site. front that America around in at the to we far we a knowledge more latency looking type North not have but will really locations, going the need lot So meet to be base for of requirements

helped So us with our even more. it's site selection

be Can you think now those year? you and sites in talk this active? fiscal biz. the you're financing the cloud you'll you a on access your little do structured Applied where financing AI once what what's How to have, place, able And how many bit stands about do --

Yes.

the locations, right? we of Minnesota. So same have have We lot a

Denver and We site in primary Jamestown, in we have large have City. Lake Those the capacity colo's our ones. are Salt

We have Vegas. Las smaller in one a

difficult is, market. to asset in a we find and that think, big extremely There's I ready It's capacity, open deployment. capacity. for very So which the have

of the reaccelerate that the is that's demand be in there market. still When we'll through get side, business. the and right strong enterprise we in growth demand on place, have type to that able financing of We coming

that access you to? megawatts you have So give ballpark rough the all a on told, can us

We not for that's megawatts. have just just secured That's Kevin, Then megawatt the -- over deployment ready over capacity for of now. XX in future.

Yes, question. appreciate of was color. the the that appreciate nature my I color, I the

over Thank much. end the Thank call remarks. Therefore, you of very back we turn And session. Wes the question-and-answer have to you. reached closing for Cummins the I'll

speaking you joining the and for call, everyone, next Thanks, operator. Thanks, to forward look to quarter.

time. you this this for conference, at and today's Thank disconnect lines you may your your And participation. concludes