Q3 2025 Applied Digital Corp Earnings Call
Speaker Change: Good afternoon and welcome to Applied Digital's Physical Third Quarter 2025 Conference Call.
Thank you Jerome good afternoon, everyone and welcome to apply Digital's fiscal third quarter of 2025 conference call.
Speaker Change: Before management begins formal remarks, we'd like to remind everyone that some statements. We're making today may be considered forward looking statements.
Speaker Change: These laws and involve a number of risks and uncertainties.
Speaker Change: As a result, we caution you that there are a number of factors many of which are beyond our control, which could cause actual results to differ materially from those described in the forward looking statements.
Speaker Change: For more detailed risks uncertainties and assumptions relating to our forward looking statements. Please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission or SEC.
Speaker Change: Yeah.
Speaker Change: We disclaim any obligation or any undertaking to update forward looking statements to reflect circumstances or events that occur. After the date. The forward looking statements are made except as required by law.
Speaker Change: We will also discuss non-GAAP financial metrics and encourage you to carefully read our disclosures and the reconciliation tables to the applicable GAAP measures in our earnings release as you consider these metrics.
Speaker Change: We refer you to our filings with the SEC for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption risk factors in our annual report on Form 10-K.
Speaker Change: Quarterly report on Form 10-Q.
Speaker Change: You may get apply digital SEC filing for free by visiting <unk> website at Www Dot.
Speaker Change: Dot Gov.
Speaker Change: To remind everyone that the call is being recorded and will be made available for replay via a link available in the Investor Relations section of <unk> website.
Digital: Now I'd like to turn the call over to play Digital's, Chairman and CEO of Western West.
Speaker Change: Okay.
Speaker Change: Thanks, Matt and good afternoon, everyone. Thank you for joining our third quarter 2025 conference call.
Speaker Change: I want to start by expressing gratitude to our employees for their continued hard work and service and supporting our mission of providing purpose built infrastructure to the rapidly growing high performance computing industry.
Speaker Change: Before turning the call over to our CFO at <unk> for a detailed review of our financial results I'd like to share some recent developments across our business.
Speaker Change: Starting with our data center hosting business. We currently operate 286 megawatts of fully contracted data center hosting capacity FERC currency clients across two locations in North Dakota.
Speaker Change: Both of which are running at full capacity.
Speaker Change: Corn prices remained strong which is positive for our customers and we remain optimistic about the business and its future prospects.
Speaker Change: And our HBC hosting segment, we have achieved significant milestones in advancing our strategic objectives, including two transactions with globally renowned financial institutions.
Speaker Change: The first transaction with Macquarie asset management.
Speaker Change: One of the world's largest infrastructure investors upon closing will allow macquarie to invest up to $5 billion in capital to support the development of applied Digital's <unk>.
Speaker Change: Next generation data centers, we believe this investment underscores Macquarie strong confidence in the scalability and value of our platform.
Speaker Change: The second was at $375 million financing arrangement with Sumitomo Mitsui Bank Corporation, one of Japan's top three banking groups and a global leader in data Center financing. We believe this arrangement reflects the trust and leading financial institutions place in the value of our data centers land assets and power infrastructure pipeline.
Speaker Change: Core E&S NBC airplane instrumental roles in ongoing discussions with customers to lease the Illinois campus.
Speaker Change: Their support is especially valuable amid the current crosscurrents in the industry and broader economy.
Speaker Change: We believe the Allendale campus represents a highly strategic industry asset with significant expansion opportunities beyond the initial 400 megawatts of critical load.
Speaker Change: Importantly, our construction remains on schedule for our first building and we expect it to be ready for service and ready to begin generating revenue in the calendar fourth quarter of 2025.
Speaker Change: Nearly all of the equipment for this building has landed giving us not only confidence in the schedule, but it also means tariffs will not materially impact our build costs.
Speaker Change: Construction is underway for the second building, which will be 150 megawatts of critical load.
This building is expected to be ready for service at the end of calendar Q2 of 2026 and ready to begin generating revenue.
Speaker Change: Building three also a 150 megawatts is in planning stages and is expected to be ready for service in calendar Q1 of 2027.
Speaker Change: The power secured for all three buildings as is the supply chain.
Speaker Change: Lastly, we expect to provide an update on leasing discussions in the near term.
Speaker Change: At that time, we will share updated views on the potential economics of the campus.
Speaker Change: Next let's discuss our cloud services business, which provides high performance computing power for AI applications. After careful consideration our board of directors has determined that reviewing strategic options for this business is in the best interest of shareholders.
Speaker Change: This decision is driven by several factors first our discussions with potential customers regarding leasing our data center business.
Speaker Change: Is it is clear that our cloud business is typically viewed as a competitor.
Speaker Change: While this is not derailed any discussions it is a point of friction.
Speaker Change: I also believe that if we were to transition to a data center REIT in the future. This would lower our cost of capital as investors typically aside higher multiples to data center businesses due to their stability and long term growth potential.
Speaker Change: For their recent industry developments, including a large competitor completing their IPO make this an opportune time for us to explore strategic options.
Speaker Change: In summary, we are encouraged by the positive trends across our business and remain confident in our growth trajectory with that I'll turn the call over to our CFO <unk> to walk you through our financials at all.
Speaker Change: Thanks, Wes and good afternoon, everyone.
Speaker Change: Let me begin by highlighting some of our recent financial announcements before providing a detailed overview of the quarter.
Speaker Change: Over the past year. The company has deployed nearly 1 billion in assets with a significant portion allocated to the construction of our data centers.
Speaker Change: While our construction teams have done a tremendous job delivering projects on time and within budget. One of the key challenges has been a high cost of capital.
Speaker Change: Reducing our cost of capital has been one of my top priority since stepping into the CFO. We began this process with $450 million convertible note at 2.75% followed by the strategic transaction of Macquarie asset management provide any potential access to up to 5 billion in capital.
Speaker Change: Most recently, we secured a $375 million financing arrangements with NBC at highly attractive rates.
Speaker Change: We believe these transactions have not only strengthened our financial position, but im also ensured we have the necessary capital to continue funding our data center buildout as well as position us as a strong strategic partner for potential customers as they evaluate future developments at Nic data Center development.
Speaker Change: Now, let's turn to the quarter.
Speaker Change: Revenues for the fiscal third quarter of 2025, or $52 9 million up 22% over the prior comparable period.
Speaker Change: This increase was primarily driven by continued growth of our cloud services business due to the deployment of additional GPU clusters.
Speaker Change: In total our data center hosting segment generated $35 2 million in revenue, while our cloud services segment contributed $17 8 million.
Speaker Change: Our cloud services business revenue declined sequentially from last quarter due to us, placing some of our capacity and to an on demand model.
Speaker Change: Shift from reserve contracts with this change we experienced some technical hurdles as we moved from a single tenant to a multi tenant configuration importantly, those technical issues are now resolved.
Speaker Change: Cost of revenues increased $2 1 million to $49 1 million from the prior comparable period, primarily driven by the growth in the business as more facilities were energized and additional services were provided to customers.
Speaker Change: SG&A expense decreased seven to $7 3 million to $22 7 million, primarily due to GPU cluster deployments as they are now revenue generating and the associated depreciation and amortization is now captured to the part of cost of revenues.
Speaker Change: This quarter, our depreciation and amortization expense decreased to $18 8 million compared to $26 2 million in the same period in 2024.
Speaker Change: Of the current quarter amount of $14 4 million was attributable to DNA in our cloud segment.
Speaker Change: Interest expense increased $4 1 million to $8 9 million, primarily driven by an increase in finance leases and interest bearing loans between periods.
Speaker Change: Net loss attributable to common stockholders was $36 1 million or <unk> 16 per basic and diluted share.
Speaker Change: Adjusted net loss attributable to common stockholders was $17 8 million or <unk> <unk> per diluted share.
Speaker Change: Yes.
Our adjusted EBITDA increased 878% to $10 million now a few items impacted our adjusted EBITDA This quarter compared to Q2 of this year as we are as we mentioned early in the quarter. We transitioned some of the GPU capacity to on demand, but encountered technical issues moving from a single tenant to a multi tenant environment those issues of sensory.
Speaker Change: We also experienced margin compression in our data center hosting business due to expected seasonal fluctuations in power cost.
Speaker Change: Now moving on to our balance sheet. We ended the fiscal third quarter was $261 2 million in cash cash equivalents and restricted cash along with $689 1 million in debt.
Speaker Change: Now with that I'll turn it over I'll turn over the call to watch for closing remarks.
Speaker Change: Thank you settle.
Speaker Change: While securing our lease for our <unk> campus is taking longer than expected customer interest remains high.
Speaker Change: Additionally, the Macquarie in SMB see transactions have elevated our status in the industry, Although we cannot control the macro environment.
Speaker Change: We can continue to build our campus on time and within budget. We believe our 100 megawatt megawatt liquid core data center is uniquely positioned to come online as industry demand accelerates. Furthermore, our one four gigawatt pipeline remains one of the most compelling offerings in the market as customers continue to invest heavily in future.
Speaker Change: <unk>.
Speaker Change: We're proud of the progress achieved this quarter and look forward to sharing further updates as the year unfolds.
Speaker Change: We welcome your questions at this time operator.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question answer session should you have any questions. Please press star followed by the number one on your phone.
Speaker Change: Here from that Johan has been raised should you wish to decline for the following process. Please press star followed by the number two if you are using a speaker phone. Please lift the handset before pressing entities. One mine. Please for your first question.
Nick: We have a question coming from the line of Nick <unk> from B Riley Securities. Your line is now open.
Nick: Good afternoon, everyone.
Nick: First on the sale of the cloud services business can you remind us what the updated split would be between on demand versus contracted and how youre thinking about total value there.
Nick: Nick in the quarter. So we had four of our six clusters.
Nick: <unk> remaining in reserve contracts and to move to on demand and the to an on demand generated.
Nick: Mall amount of revenue later in the quarter.
Nick: Is that all had mentioned we've rectified the technical issues, there and expect that.
Nick: To ramp up in the current quarter, but that's the split currently.
Nick: Okay.
Nick: Got it and just to clarify none of the clusters today are in applied data centers. So there wouldn't be a structure, where you would.
Nick: Where you would.
Nick: To operate some of the capacity for those Gpus correct.
Nick: Correct.
Nick: Great and my second question was just on the PTC hosting business.
Nick: Where does this business fit in the long term, especially as you remain focused on converting to a REIT structure later down the road.
Nick: Yes.
Nick: The BTC assets will fit in a REIT structure.
Nick: I think there is a long term match between HCC data center capacity in bitcoin hosting capacity.
Nick: Nick when you look at the sites that we're operating so let's look at <unk>, specifically, so 400 megawatts of critical load.
Nick: Move to 530 total utility load, but that won't be if that all of that power needs to be available at all times, but typically these run in the 70% maybe at the high end 80% of capacity.
Nick: On an average basis and so that leaves a significant amount of power that would go on us and I think that's a really great match for bitcoin facilities that have that ability to dynamically adjust the load at a site. So I would expect that to remain at Allendale for us and I would expect actually for us to take a hard look at that a new site.
Nick: As well to potentially add some bitcoin capacity.
Nick: To be matched with the HBC capacity, but I look at those businesses as effectively one business.
Nick: Got it that's that's very helpful. Wes.
Nick: I'll turn it over for now but continued best of luck.
Nick: Thanks.
Speaker Change: Thank you. Your next question comes from the line of Brad <unk> from Cantor Fitzgerald. Your line is now open.
Speaker Change: Hi, guys. This is Thomas Shen Qian for Brett.
Speaker Change: Thank you for taking my question.
Speaker Change: So first I guess, you mentioned Macquarie in Smb's Youre, playing an instrumental role in finding a potential leaching partners' share of Allendale.
Speaker Change: Yes, theyre involved.
Speaker Change: Are you seeing faster diligence timelines or improved leasing momentum.
Speaker Change: Our sport.
Speaker Change: I think the way I would.
Speaker Change: Excuse me phrase that is.
That we've seen.
Speaker Change: More interest and.
The people who are already there I think it is.
<unk> significantly increased the comfort level with our of our ability to complete construction and operate facilities.
Speaker Change: With kind of a world class financing partners and the <unk>.
Speaker Change: <unk>.
Speaker Change: Awesome, Great and then just on Capex I guess can you provide an update on your expected capital needs over the next 12 to 18 months.
Speaker Change: And whether the current construction of Allendale as being in line with past projections of Capex.
Speaker Change: Yes. So is that all speaking so in terms of Capex projections, you're correct. It's in line with past projections now we will always.
Speaker Change: The whatever impact of any tariffs will have for the second and third buildings and adjust accordingly, but as of now it is in line.
Speaker Change: And then we proud prior.
Kind of pointed out in terms of the Capex cadence you are running anywhere from 30% to $50 million a month.
Speaker Change: Terms of actual Capex for the first building.
Speaker Change: Awesome. Thanks, and then one more if I may on.
Speaker Change: Hey coin hosting business I guess could you provide.
Speaker Change: <unk>.
Speaker Change: Hi.
Speaker Change: Clarity on when those contracts are up for exploration and if you see any risk.
Speaker Change: Your large client potentially rolling off at the expiration of those contracts.
Speaker Change: There's always risk of non renewal.
Speaker Change: Don't expect that to be the case, but I believe it allendale, we've roughly two years left on those contracts.
Speaker Change: To double check that and Jamestown is roughly the same.
Speaker Change: Awesome. Thank you guys.
Speaker Change: Thank you. Your next question comes from the line of Rob Brown from Lake Street Capital markets. Your line is now open.
Rob Brown: Hi, My first question is on the.
Speaker Change: The remaining steps to complete the <unk> facility.
Speaker Change: That piece of the kind of fourth quarter, it would be running but what's sort of left there and how much capex is left to go just in that facility.
Speaker Change: Yes, I think so.
Speaker Change: Good guidepost.
Speaker Change: For for Capex spend generally for a tier three data center anywhere in the range of $10 million to $13 million per megawatt. So we're building a 100 megawatts of critical load.
Speaker Change: For the Allendale.
Speaker Change: First building.
Speaker Change: Think about what's left as you can see from some of our social media updates the building in a lot of the OCI the equipment has landed.
Speaker Change: Right now it's a lot of the what I would like to call the finishing touches as well as building out the generator plant backup power Gen et cetera, I'd referred to in our Q a lot of the PP&E, particularly within the segment disclosures showed the spend and the assets as of February on the balance sheet.
Speaker Change: And Rob just to add to that so we have been I believe since February commissioning.
Speaker Change: Our equipment at the facility. So you go through a fairly lengthy commissioning process that.
Speaker Change: Facility will start landing.
Speaker Change: Landing it equipment in the July August timeframe, and then you have to.
Speaker Change: The deployment of the equipment and this equipment as you probably know requires a significant amount of cabling and networking.
Speaker Change: So you'll have that piece of it as well to go for.
Speaker Change: Our customer.
Speaker Change: But we will just to think about that.
Speaker Change: We should start landing equipment and like I said July August and then start cabling racking cabling.
Speaker Change: And have this ready to go.
Speaker Change: The expectation is to start actually turning on in October.
Speaker Change: Okay excellent.
Speaker Change: And then in terms of selling the cloud business.
Speaker Change: What's sort of your sense on the plans or you start marketing it now and hope to have it sold by <unk>.
Speaker Change: As of year end or any kind of inside outside in terms of timeline there.
Speaker Change: That process Ravi has just started.
Speaker Change: I think we're prepared to give any update or any expectation on what that might be I think there is a lot of different ways that could go in a lot of different structures that we could participate in I wouldn't think of it as just a sale where we're evaluating everything there.
Speaker Change: But I think it's just too early for us to give any real meaningful comments on that.
Speaker Change: Okay understand okay. Thank you I'll turn it over.
Speaker Change: Thank you. Your next question comes from the line of Darrin at Sky.
Speaker Change: <unk> capital Partners. Your line is now open.
Darrin: Hey, guys. Thanks for taking my questions on.
Darrin: On the AI cloud business did you give any inbounds pre making this announcement about putting the asset up for sale.
Darrin: Can't make a comment on that Darren.
Darrin: Fair enough and then a clarification moving from.
Speaker Change: Single tenant to multi tenant and the technical issues.
Darrin: The prior quarter.
Darrin: Or are you guys just reported.
Meaning is it just kind of true it up starting the may quarter.
Darrin: Yes issues were resolved there.
Darrin: I think the first or second week of March so it should be resolved for the majority of the may quarter.
Darrin: Got it and then just one last one if I may.
Darrin: Yeah.
Darrin: The existing hyperscale or as you've been talking to sort of.
Darrin: Post Macquarie has disposition about data center build changed at all just given the current macro environment, maybe has anything changed in the last three to four five weeks.
Darrin: Yes.
Darrin: Wouldn't say changed in that timeframe necessarily to what I would say in general Darrin is for the last year for US and then I've talked to a lot of.
Darrin: Ceos that have been operating in this space for a lot longer than we have.
Darrin: When youre dealing with a group of.
Darrin: Five or six potential.
Darrin: Potential customers may be seven potential customers with.
Darrin: It's a fairly concentrated market from that perspective, and you have just kind of patterns of one of those companies is very aggressive and one is.
Darrin: Not not very aggressive in the market. So I would say what we have seen over the past year and one of the things that has taken longer for us to get to where we want to be on the on the final leases.
Darrin: Just do you see demand rotate between the hyper scaler in what I would say overall as we see <unk>.
Darrin: Demand at least what it was if not higher than it was three months ago. When we had our call in January but it is not always the same players. So you just see it kind of rotate between.
Darrin: And Theres a lot of.
Darrin: I think pretty obvious dynamics in the market, where you could guess as to why that is there some really big end users of the GPU capacity.
Darrin: Have a lot of plans that have been announced.
Darrin: Over the past few months, so I think thats, one of the things that drives it but.
Darrin: My understanding is it's also just not uncommon for.
Darrin: Some of these to to consume a lot of data center capacity take a break and then come back.
Darrin: Thanks.
Speaker Change: Thank you. Your next question comes from the line of Mike Grondahl of Northland Securities. Your line is now open.
Speaker Change: Hey, guys, thanks and.
Speaker Change: While you're covered demand a little bit worse.
Speaker Change: For the 100 megawatts.
Speaker Change: Are you still talking to multiple hyperscale or for that or has that been kind of narrowed down.
Speaker Change: One hyper scaler youre negotiating with them.
Speaker Change: If you could talk a little bit about pricing trends. The last 90 days what are you seeing.
Speaker Change: So I would say so let me let me let me hit pricing first so on pricing.
Speaker Change: I would say the last 90 days have been fairly stable I would say if you look on a year over year basis.
Speaker Change: It's increased.
Speaker Change: Year over year, and Thats to our comment of updating kind of are.
Speaker Change: Financial expectations for the campus versus what I think the last time, we talked about that was roughly a year ago.
Speaker Change: When we give an update on the leasing activity there.
Speaker Change: So.
Speaker Change: Pricing up year over year, but I would say generally stable on the data center front in the last 90 days and then on.
Speaker Change: The other question about who we're talking to it I'll just defer that.
Speaker Change: Yes.
Speaker Change: Made a lot of progress over the past.
Three months since our last call.
Speaker Change: We continue to have multiple discussions.
Speaker Change: And what I would say about that is there's ongoing discussions with basically all of the hyperscale or is and it's not necessarily just Ellen Dale.
Speaker Change: We have discussions about our campus in South Dakota, as well as other campuses, where we've also made a significant amount of progress on pushing forward with with campus number two for ourselves.
Speaker Change: Those conversations are just constant I won't I won't comment on how far down the path we are with one in particular.
Speaker Change: Got it and then.
Speaker Change: The decision to pursue a sale of the cloud business.
Speaker Change: You kind of talked about some of your.
Speaker Change: Hyperscale customers kind of view that as a friction point or potential competition.
Speaker Change: And you talked about how it doesn't fit into the REIT structure.
Speaker Change: The recent quarter we've IPO.
Speaker Change: Would you say there was a fair bit of pressure from your hyperscale potential customers.
Speaker Change: That business I'm, just trying to understand if that was a little bit more external driven or internal driven.
Speaker Change: So I would say your last comment there is a fair comment but also.
Speaker Change: We've spoken publicly about this a fair amount of that.
Speaker Change: These are we've structured these as two separate businesses. They are two separate businesses, it's two different customer bases.
Speaker Change: And now we think is the time to separate those businesses whether that be from from those types of pressures or just what's going on in the market from you had a couple of.
Speaker Change: GPU cloud businesses come public.
Speaker Change: In the past six months. So I think it's just the right time for us.
Speaker Change: We've always structured these that they.
Speaker Change: They would eventually be separate businesses and we just think it's the time to move towards the separation.
Speaker Change: Got it and then do you still see that cloud business is roughly $110 million to $120 million annual business Fts.
Speaker Change: After the on demand portion.
Speaker Change: Amps back up.
Speaker Change: It should be I expect it to be in that neighborhood, where it was back in the previous quarter.
Speaker Change: <unk>.
Speaker Change: The piece of on demand is increasing the customer base and then also you typically get higher pricing for on demand versus reserve contracts.
Speaker Change: And I do think is if you look at the eight hundreds that we have as those reserve contracts all roll off those will go into an on demand model you can do reserve contracts.
Speaker Change: My opinion on newer generation. There is you could do some reserve contract not doing two years again.
Speaker Change: Probably due six months or maybe one year of additional reserve contracts, but I think this market is just moving more and more to an on demand model and so we're we've started adapting too to react to that.
Speaker Change: Got it hey, thank you.
Speaker Change: Absolutely.
Speaker Change: Thank you. Your next question comes from the line of George Sutton from Craig Hallum. Your line is now open.
Speaker Change: Thank you just a question on the sale process.
Speaker Change: With your potential lessors, having issues with the ownership.
Speaker Change: Are they good with.
Speaker Change: In process sale would they require a definitive agreements I'm just curious how significant they would be this.
Sure. There is no there is it will be.
Speaker Change: There is no hard requirements on any of this.
Speaker Change: Yes, like I said I think this is just the right time for us to do this.
Speaker Change: For both both of the businesses quite frankly so.
Speaker Change: The cloud business to continue to grow whether.
Speaker Change: And a separate form from the combined company and then allow us to really focus on the large scale data center business.
Speaker Change: Yes.
Speaker Change: Got you I know you've been carrying some third party data center capacity that was unused I'm curious how that part's is involved in this process.
Speaker Change: Yes.
Speaker Change: That can go or.
Speaker Change: That third party data center capacity two.
Speaker Change: 2023 pricing in my view as a very valuable asset that we have.
Speaker Change: We've been asked about from third parties about getting that capacity from us. So I view that as one of the big assets of this.
Speaker Change: This business is you know anyone who takes that business has a media growth potential available data center capacity.
Speaker Change: That is at attractive pricing like I said, it's 2023 pricing versus 25 pricing.
Speaker Change: Got you Okay I appreciate it thank you.
Speaker Change: Absolutely.
Speaker Change: Thank you. Your next question comes from the line of John <unk> of Needham. Your line is now open.
Speaker Change: Hey, guys. Thanks for taking my question two here and maybe we'll start with the the AI cloud business. So 2023 pricing that's interesting how long I guess left on those leases.
Speaker Change: And then one other what other piece would effectively be the Gpus is there any anything else that would kind of get sold off in that process.
Speaker Change: Okay.
Speaker Change: So does that also on the omni data center leases. They are generally five to seven years I will fix engines. So thats.
Speaker Change: The reception on that and then I'll, let <unk> talk about the yes. They are.
Speaker Change: Those are the primary assets that you've used in the data center capacity.
Speaker Change: And then obviously.
Speaker Change: Some software.
Speaker Change: I guess the business.
Speaker Change: We built it separate from the data center business there is no real overlap.
Speaker Change: So.
Speaker Change: Yes.
Speaker Change: From that perspective of separating it out it will be easy for.
Speaker Change: For us as a seller and opinion potential buyer.
Speaker Change: Got it understood and then.
Speaker Change: On the HP <unk> sided being it sounds like you guys are pretty close to a lease just with those expectations for generating revenue.
Speaker Change: Is the thinking still that whoever takes the 100 megawatts of Allendale does the full 400 megawatts for the campus is that still thinking.
Speaker Change: Okay.
Speaker Change: And if not.
Speaker Change: Kind of that expectation for building to.
Speaker Change: It seems like you are far along with with someone given that that timeline.
Speaker Change: Seems a bit aggressive with what Q2 'twenty six generating revenue.
Speaker Change: So think of that as Q3 2006.
Speaker Change: Ready for service at the end of Q2.
Speaker Change: And then Q3 'twenty six for Rev. Gen.
Speaker Change: John My expectation remains that.
Speaker Change: One one customer takes that campus.
Speaker Change: No.
Speaker Change: Yes, yes.
Speaker Change: Mondale campus does grow beyond that 400 megawatts.
Speaker Change: In 2028 and beyond so I wouldn't necessarily say that one customer is going to take all of that but.
Speaker Change: But I do think for the 400 video.
Speaker Change: Understood.
Speaker Change: Helpful. I'll hop back in the queue. Thank you.
Speaker Change: Thanks.
Speaker Change: Thank you.
Speaker Change: And there are no further questions at this time turning over.
Speaker Change: The west comments or closing remarks.
Speaker Change: Thank you everyone for joining our earnings conference call look forward to speaking with you I believe this year will be in July on the next earnings call and again, thanks to all of our employees for all their hard work in the past quarter.
Thanks again speak to you soon.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines. Thank you.
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