Thank you, Pascal. Hello, everyone, and welcome to Applied Digital's fiscal First Quarter 27 Conference Call. Remarks, we would like to remind everyone that some statements we are making today may be considered forward looking statements under securities laws and involve a number of risks and uncertainties. A result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward looking statements.

More detailed risks and uncertainties and assumptions relating to our forward looking, please see the disclosures in earnings release and public filings made with the SEC. We disclaim any obligation or 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. We also discuss non GAAP financial metrics and encourage you to read or disclosures and the reconciliation tables to the applicable GAAP measures and earnings release carefully as you consider these metrics.

Refer you to our filings with the SEC for detailed disclosures 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 ks and our quarterly reports on Form 10 Q. May access the Applied Digital's SEC filings for free, visiting the SEC website at www.sec.gov. Also like to remind everyone that the call is being recorded and made available for replay via a link in the Investor Relations section of Applied Digital's website. I will turn the call over to Applied Digital's Chairman, and CEO, Wesley Cummins. Wesley?

Thanks, Matt, and good afternoon, everyone. Thank you for joining our fiscal first quarter 27 earnings conference call. As we begin fiscal 27, I would like to provide an update on our vision, our strategy, and most importantly, our execution. Today, we have approximately $36 billion in contracted revenue across 5 campuses. 3 states, and 2 very different geographic regions of the country. Our focus is on converting our contracted portfolio into sustainable, profitable growth while continuing to selectively pursue new opportunities across our expansive land and power portfolios.

During the past year, success was primarily measured by growing our portfolio of campuses and our total contracted value associated with those campuses. Over the near to medium term, we expect to continue expanding our existing campuses and selectively adding new locations with a strong focus on execution and bringing contracted capacity online for our customers. Over the next 12 months, we expect to place over 600 megawatts into service versus 250 megawatts.

Over the past 12 months. Let me turn to our vision and strategy, which remains unchanged. Our goal is to become the category leader in design, build, deployment, and operation of purpose-built AI factories. Achieving that requires us to balance several things well. Selecting the right customers, matching those customers with a funding strategy that optimizes our financial returns, and executing consistently on our builds.

We believe we are well positioned to do all 3. We have a proprietary and proven data center design that has gained acceptance by the leading top-tier hyperscalers. We have a well honed supply chain, deep energy partnerships, and a demonstrated ability to deliver on our lease commitments. Importantly, our data center design is different from many of our competitors. Some competitors' facilities are designed primarily around the typical 5- to 6-year life cycle of the GPU.

We have taken a different approach and are building for the long term with 30 plus year horizons. We believe our AI factories are designed to be substantially more adaptable as compute architectures network configurations, and electrical and mechanical requirements evolve over time. Our design and our investment strategy are based on a set of core principles intended to extend the useful life of our AI factories, and campuses well beyond any single generation of compute architecture.

That matters because we believe the customers signing long term leases with us expect these facilities to continue serving their needs well beyond the initial lease term. As a result, we believe our design and build strategy together with our franchise model is highly differentiated and will generate outsized returns for our stockholders over the long term. Our primary focus remains straightforward. Build large, sustainable AI factories and sign durable, high quality long term contracts.

We target take-or-pay contracts of at least 15 years with proven, tier-1 investment-grade hyperscalers that are leaders in the AI industry and are well positioned to convert their investment into sustainable and profitable growth. We view our customers' ability to convert their AI investments into durable and sustainable earnings as an important metric as we make decisions on who we will build for. This is a relatively narrow group of customers who represent enormous demand in significant long term spending potential.

These customers have told us that they value our quality of design, the quality of our builds, the strength of our world class team. In addition to signing new contracts, 1 of our priorities is to continue expanding our existing campuses. We also see opportunity to capture premium pricing as demand grows and we realize the economies of scale inherent in large AI campus developments. We have continued to make progress on expansion opportunities with our existing customers while also advancing discussions around additional campuses.

We currently expect approximately 250 megawatts of expansion leases to be executed by year-end at materially higher pricing compared to prior leases. As we continue to expand our existing campuses and seek to lock in premium pricing, we believe these campuses contain significant, underappreciated embedded value. We expect that value to grow over time as we execute against our contract portfolio and focus on delivering outsized long term returns to our stockholders.

I would like now to turn to our execution in North Dakota. Where we are currently building multiple AI factories across 3 campuses. North Dakota is our largest operating region and remains core to our strategy. We have repeatedly said its low cost of power, abundant energy resources, low population density, and favorable climate make it 1 of the most compelling regions in North America for large scale AI factory development.

We expect additional tier 1 hyperscalers to recognize those advantages over time. It is also the place where we have made the majority of our investments to date. both in the campuses Both in the campuses we are building and in the communities with which we have partnered. Power remains the single largest gating factor in our industry, and North Dakota is 1 of the few regions where we believe new generation can be added at meaningful scale.

Speaking to that scale, we recently took a significant step in expanding our power position in North Dakota by entering into a long term power purchase agreement with Base Electron, an independent power producer which we hold an approximate 10% equity stake. The agreement covers an approximately 1.2 thousand megawatt natural gas facility that Base Electron, is developing in Central North Dakota adjacent to our Polaris Forge 3 campus deliveries expected to begin in 2030. This is exactly the kind of outcome our model is built to produce.

While many operators are waiting in interconnection queues for capacity they do not control, we are contracting for dedicated generation at the scale of our campuses with an agreement that can follow our tenants and a timeline aligned with our future development needs. We believe this dedicated supply substantially strengthens our ability to expand our North Dakota campus on our own timeline rather than the grids and gives us greater visibility into the power resources that will support our future growth in the region. To put the pace of our execution in North Dakota in perspective, we signed our first lease with CoreWeave in May 2025 for our first 2 buildings at Polaris Forge 1.

The first of which was then under construction. By the end of calendar year 2025, the first building was fully operational. Capable of supporting more than 40 thousand liquid cooled NVIDIA GV300s. The second building, which broke ground in summer of 25, became operational approximately 1 year later. As of today, we have achieved full ready for service or RFS across our first 2 buildings at our Polaris Forge 1 campus.

With our third building progressing on schedule. The operational buildings encompass 10 data halls and are supported by 250 megawatts of critical IT load. This represents a 150% increase in delivered capacity. At Ellendale alone, we believe we are substantially ahead of our closest competitors in delivery capacity. And with the expected initial operation of our Harwood, North Dakota campus, we anticipate having 300 megawatts of critical IT online across North Dakota by the end of this calendar year.

We believe this level of delivered capacity places us among the leading companies in our category regardless of geography. In The United States beyond North Dakota, we are developing campuses with substantial expansion potential in Louisiana and Alabama. These markets offer compelling characteristics, including access to power, and strong state and local support for the build out of national AI capacity. We view the presence of other top tier hyperscalers developing large scale AI, large-scale AI campuses in these regions is further reinforcement of their strategic importance.

Our development activity in Louisiana and Alabama continues to progress, and we remain encouraged by the scale of customer demand across the region. We expect revenue contribution from this region of the country to begin in the first half of calendar year 27. We recently took our first steps outside The United States. While our focus remains firmly on executing our domestic projects, we believe select European markets may provide attractive opportunities to leverage our expertise and extend our platform over time as we continue to build applied into a category leader.

As part of that early look, we signed an agreement for up to 1 gigawatt of potential power capacity in Finland. We view this as a measured first step The agreement provides meaningful long term potential while limiting our initial exposure and protecting downside risk while our near term execution priorities remain centered on The United States. Turning to our data center hosting business. 286 megawatts of capacity for Bitcoin mining across 2 North Dakota sites continues to operate efficiently and provide steady high margin revenue with minimal ongoing capital investment.

And now to ChronoScale, in which we have an approximately 96% ownership stake. Neoclouds continue to represent 1 of the fastest growing segments in this market. NVIDIA expects neoclouds to exit this year with 8 gigawatts of installed capacity up from 3 gigawatts at the end of 25. During the quarter, ChronoScale announced plans with Microsoft for a 50-megawatt AI compute deployment in North America featuring NVIDIA GV300N v l 72 systems.

This deployment is expected to significantly expand ChronoScale's existing business with a tier-1 investment grade customer and represents another important step in scaling the platform. With recent new contracts, ChronoScale is on track to reach $1 billion of ARR in 2027, and momentum for additional contracts continues to build. With that, I will turn the call over to our CFO, Mohammad Saidal L. Mohmand, for a detailed review of the financials. Saidal?

Thank you, Wesley, and good afternoon, everybody. Quarter, we completed the financing of our first campus. Earlier this year, we had only 1 remaining tranche of debt to place for the final 150-megawatt building at Polaris Forge 1. In June, as we discussed on our last call, we closed that tranche. A $1.59 billion offering of 7% senior secured notes due 2031 issued at par. With the proceeds of the offering, we have funded construction on the third building at Polaris Forge 1 and have repaid the $300 million bridge facility we put in place in May.

With that, the full 400 megawatts of the core weave campus of Polaris Forge 1 and the 200-megawatt of contracted capacity of Polaris Forge 2 are now fully funded. The pricing of that deal is worth pointing out. Our first Polaris Forge 1 related notes placed last year carry a 9.25% coupon. This tranche priced at 7%. We believe the pricing reflects the credit enhancements of CoreWeave earlier this year growing investor confidence in our platform.

We are earning that confidence by executing and delivering our buildings on track and on budget, and we expect the first building at Polaris Forge 2 to similarly be on track and on budget. This success supports market confidence in our ability to execute. It drives us to reach our previously stated goal to keep bringing our cost of capital down first at the project level and over time by refinancing operating buildings into lower cost markets such as ABS.

We also added flexibility at the corporate level. In June, we upsized the revolving credit facility to $430 million of commitments. With an additional $120 million accordion remaining available. Looking ahead, the next campuses we need to finance are Polaris Forge 3, Delta Forge 1, and Delta Forge 2. All of these are leased to the same tier-1 investment grade hyperscaler under 15-year take or pay leases. We believe this fact changes the financing conversations of potential creditors.

Recall, tier-1 investment grade tenants open access to a deeper pool of capital, which we believe supports more attractive terms. We are following the same framework. Preferred equity from Macquarie Asset Management followed by project level debt, which allows Applied Digital shareholders to retain a majority ownership stake in each site. We are already in active discussions with leading lending institutions, and given the credit quality of this customer, we have a high level of confidence in our ability to fund these campuses at favorable rates and terms.

Now let's turn to the quarter. As a reminder, Kronos scale is included in our GAAP consolidated results but is excluded from our non GAAP financial measures. Reported total revenue of $341.9 million, up 322% from $80.9 million in the prior year quarter. Our HPC hosting business generated $262.6 million of revenue. Consisting of $65.8 million of base rent, $183.5 million of tenant fit out services, and $13.3 million of tenant recoveries.

Our data center hosting segment, which operates our 2 Bitcoin hosting sites, generated $37.8 million in revenue in line with the prior year quarter. Continue to be very pleased with this business, which generated $13.3 million in operating profit in a single quarter on $111.9 million of segment assets. Segment operating profit this quarter more than doubled from $6 million in the prior quarter, driven by a favorable power pricing.

Cronos scales revenue was $41.5 million this quarter, including $23 million of GPU hardware sales. Services and other cost of revenues was $245.7 million, primarily consisting of $176.1 million in tenant fit out services performed within our HPC hosting business, $22.4 million associated with ChronoScale's GPU hardware sales, $19.8 million in energy cost, and $17.6 million in depreciation and amortization. Data center rental and other cost of revenues was $43.9 million, primarily due to $22.4 million in depreciation and amortization expense on our operational AI facilities at our Polaris Forge 1 campus, $30.3 million in expenses, which are reimbursable as tenant recoveries, and $7.8 million in personnel and other operating costs supporting our facilities.

SG&A was $114.7 million this quarter. This was primarily due to $65.4 million in stock based comp, $16 million of professional services mainly related to transactions, $15.6 million of personnel expenses, and $4.8 million of lease expenses. 1 item worth calling out in the quarter, Our stock-based compensation expense included $41.3 million tied to onetime performance stock units. We also recorded $67.5 million of a noncash loss from the change in fair value of our Babcock & Wilcox warrants, and the common stock investment.

Both are mark to market every quarter as B and W stock price changes. Net loss from continuing operations attributable to common stockholders was $221 million or $7.76 per share. Adjusted net loss was $4.1 million or $0.01 per diluted share. Adjusted EBITDA was $64.4 million, up from $500 thousand in the prior year quarter. Net operating income, or NOI, which is exclusive to our HPC hosting business, was $58.8 million, representing an 89% margin.

From a balance sheet perspective, we believe we remain well positioned. We ended the quarter with approximately $2.9 billion in cash and cash equivalents, plus $700 million of restricted cash against approximately $6.4 billion of debt. Dollars Note, more than 80% of that principal does not come due until fiscal 31 or later. Stockholders' equity is approximately $1.6 billion Our goal remains to maintain 1 of the strongest balance sheets in the industry through the majority of the construction phase, and we will execute as such. With that, I will turn the call back over to Wesley for closing remarks.

Thank you, Saidal. Before we open the call for questions, I want to close on something that comes up in nearly every investor conversation we have today. The growing scrutiny around data center development across the country. We are seeing more local moratoriums, tighter zoning requirements, longer permitting timelines, and greater community resistance in certain markets. Some may view this as a risk to our industry.

We see it differently. We believe it actually increases the strategic value of our campuses that are already powered, operating, and supported by their communities. We think the reason is straightforward. At our campuses, once they are established, we believe much of the hardest work has already been done. Land is controlled. Power and interconnection are in place. Permits have been secured. Fiber, workforce, and local supply chains have been established.

And perhaps most importantly to us, the community knows who we are and sees how we operate. This is why we think expanding at existing campuses is materially different than starting from scratch in a new market. We are already seeing this dynamic across our portfolio. Customers tell us they want additional capacity in places where they have confidence it can actually be delivered. As new data center development becomes more difficult in certain markets, we believe the scarcity value of established, powered, and community supported campuses increases.

Think that dynamic creates meaningful barriers to entry and support stronger economics on expansions and renewals, and over the long term, higher terminal values for our assets. Put simply, our view is that every new restriction elsewhere makes what we already own harder to replicate and more valuable. This is also important when we think about the long term value of these assets. Our leases have 15-year based terms, but the land, power, interconnection, community support behind these campuses have the capacity to last far longer than any single lease.

When a base term ends, then we see a tenant with tens of thousands of GPUs deployed in a powered liquid cool campus faces a simple choice. Renew with us, or try finding comparable power and approval somewhere else in a market where new sites become increasingly difficult to approve. We believe that makes renewals more likely, support stronger renewal pricing and allows our tenants to continue refreshing their technology within the same facility for decades.

This is why we believe in the durability of our leases, and that the terminal value of these campuses is meaningfully higher than a traditional real estate model would suggest. We also believe that the value should continue to grow as new supply becomes harder to build. And local leaders have told us the reason our communities want us to expand is because we have worked hard to earn their trust. Our approach has always been simple.

Do it the right way. In North Dakota, MDU's customers have saved about $45 million since our Ellendale project began because we use excess grid capacity and help spread fixed costs across more load. In Harwood, we paid for over $100 million of substation and grid upgrades ourselves, which benefit the entire community. Our model already meets the rate payer protection pledge that Governor Armstrong joined alongside 22 other governors.

Local leaders have also shared with us that the positive economic impact on these communities has been significant. it is drawing national attention, including coverage on Fox Business News and the All In podcast. Ellendale is a great example. Since we began our partnership with the community, local tax revenue is expanded roughly tenfold from $400 thousand a year to $4 million. These tax dollars are helping fund schools, infrastructure, and emergency services.

Construction workers, on our sites earn 6-figure incomes on average, and many of those dollars stay in the local economy. We were honored that Mid America Economic Development recently named Polaris Forge 1 its project of the year. Recognizing the campus for its economic impact, community investment, partnerships, and technological innovation. That award belongs as much to the Ellendale community as it does to us. And we are incredibly grateful to everyone who continues to make Polaris Forge 1 possible.

We also invest directly in our local communities. Through Applied Digital Cares, we recently distributed $350 thousand across 5 organizations in Oliver County, home to Polaris Forge 3. That includes funding the new sheriff's deputy, a new life pack for the county ambulance, repairs to 2 fire trucks, computers so every student in grades 7 through 12 at Center Stanton has a device, and repairs to the community center and pool in Center.

As Governor Armstrong put it, North Dakota wins when companies like Applied Digital choose to be more than an employer. Do not just build in communities. We build with them. And that is why they are Welcoming us back to grow and why we believe each of our campuses has significant embedded value that will continue to build over time. In closing, we believe we are in the right place at the right time and doing this the right way.

More than ever, we are in control of our own destiny across the full stack. We own the land. We design. We build and operate the AI factories. Through ChronoScale, we reach all the way to GPU compute. And through partners like Base Electron, we have visibility into the power that feeds it all. If demand continues on its current path, and we continue to execute and deliver for our customers and our communities as we have been doing.

We believe we have the ability to grow our operating portfolio to 3.5 to 4 gigawatts by the end of calendar year 2023. With that, operator, we are happy to open the call for questions.

Sure, Mike. Thanks for the question. So what we are seeing in North Dakota, obviously, we have you 3 customers there ourselves already. We are aware of a self build project of roughly 1-gigawatt self build project from 1 of the tier 1 hyperscalers in the state as well. And we have been-- that is that is outside of the ones that we already have in the state. And we are having multiple conversations with other tier 1 hyperscalers for additional capacity in the state of North Dakota.

So the answer is I think all of them will eventually be there. And that is a state that has. 1 of the most attractive things about the state beyond the power and the climate and the population density. If they have a framework for how data centers are treated in the state and so everyone knows exactly what to expect as you go through the process in that state. And as long as you, you do the development the right way, it is a. it is an extraordinarily attractive state to be in, and I think it is just going to become more so over the remainder of this year in 2027 and 2028.

Yeah. Thanks for the question, Mike. And it is a great question. As you can recall, we completed the Polaris Forge 2 and the Polaris Forge 1 financings, which you could argue, are not of the same credit quality. Great tech customers. They execute great, great tenants to have. So when you think about the go forward with Polaris Forge 3 and Delta Forge 1 and 2, given that it is in high investment grade hyperscaler, there is, multiple options beyond the high yield bond market, which we have liked, and we have been in the short end with the past projects.

So for instance, the project finance market is well open for high investment grade offtakes. As well as there is some new innovations within the investment grade bond market. So what we have seen, there is flexibility amongst various products that we can tap. Obviously, we weigh those and find a mix that works for our profile. But what we are focused on in a rate environment that can move around 50 to 100 basis points 1, we do not underwrite leases where a 100-basis-point move would impact our economics really.

But then 2, we focus then on terms where we can refinance in a year or 2 years with minimal penalties. So once that construction risk, which generally is anywhere from 25 to 100 basis points of construction risk premium, on a debt instrument Once we go past the construction phase, we have the flexibility to lower our costs relatively quick, into a more permanent financing. That is our focus. We are nimble, and it is a great thing having a high investment grade hyperscaler with multiple options to run at.

Thanks, Mike.

Sure, Nick. Thanks. So for the site, we have purchased the site. And then we have the option. So the initial power of that site comes in 2028, and then additional power, which is typical of almost any site that is gonna scale to a gigawatt. There are breakpoints where they will get approvals for, you know, additional power add. there is pretty good line of sight to that. But then there would be additional payments at that point, but there is an off ramp for us prior to those additional payments.

So it is a pretty minimal amount for us to have this kind of exposure in a market that we think has become pretty attractive as far as the European market goes. And we have, you know, we have spent the last. I 12 months looking into that market, and we have looked at probably 30 to 40 different sites. And we landed on this 1. We think it is a good site. And it is kinda coincided nicely to a point where our existing and the other potential customers that we talked to started asking more in the last, you know, 4 months about European capacity. So those things kind of go pretty well together. It gives us a lot of optionality to the upside with pretty minimal financial risk.

Sure, Nick. So it is a couple of things. We have talked, you know, for Since we started the design that we used today. Right? I call it our fourth generation data center design. With this design, we made it extraordinarily flexible with all of the learnings we had gathered through the process as we went through with all of the hyperscalers. So 1, it is flexible enough to work for any of the hyperscalers. But 2, we made it flexible to future proof it as much as possible.

And some of that comes into how we do the electrical, some of it in the cooling. A big part of it is the amount of space that we put inside the data hall so that you the trend is for higher power densities and that is the foreseeable future. If it goes too much lower power densities, we have the space inside of the facility to accommodate that as well. So we just built maximum flexibility. We have talked about this for a few years now.

But what I am seeing in the market is a lot of things happening that are just hyperfocused on how quickly something can come online and doing you know, close to unnatural acts, I would say, to just put capacity online as quickly as possible. And I am not saying that is a good or a bad business strategy, I just wanna differentiate from what we are doing, which is a much more longer term view of how we build the data centers so that they are very long-term assets. You can never fully know what the future brings, but that is the view that we have with the company. that is how we designed them. that is how we design them from a redundancy, from both a power and cooling perspective.

Because we could build a slightly cheaper product We do have to make sure that we can operate this product for at least 15 years on our current leases with within the SLAs. But we wanna operate them longer than that. But it is just really more insight into kind of the thought process and the longer term thinking behind our data center design and build and the operations versus some of the other things that we are seeing just overall going on in the market.

Sure. So from a demand perspective in the market, we are seeing no. I would not say big change either way. I mean, it feels like we are at max. I have thought of that for kind of the last 2 years, and it continues to notch up. But demand remains extremely robust for, you know, right now. it is are still pushing for things that they can get in 2027. Really, almost everything in 2027 should be fairly contracted at this point.

We start moving into 2028 and 2029. We have stuff that is contracted into 2028, but we are seeing a lot of demand for that as well. And really, it is locations. Mike, we keep pointing to North Dakota, but Louisiana is a great market for us as well, and so is Alabama. We have had a great experience there with the community. And the certainty of being able to continue to get the permits, the existing power that we have on campus, the supply chain for us to continue to execute I would just reiterate those comments about we fully expect to do some lease expansion and new campuses at materially higher rates versus what we signed our last contracts for in the first half of 26.

Yeah. So we have actually went through that exercise, and the build cost is very. We expect it to be very similar on a dollars basis versus euro. And so. And by that, I mean, if we converted the euros back, would be roughly the same dollars. But I would expect there is a more elongated delivery time line. In Europe, just kind of how it works versus what we do here in The US. But the goal is to replicate the same thing from the supply chain and design and build perspective in the markets. When we enter Europe versus here. But we have done that work and expect a very similar cost.

Sure. So when we start to think about 2030, Robert, primarily on Base Electron. So base electrons building the 1.2 gigawatts in Center. It expect BaseElectron to build a significant amount of capacity on the eastern side of the state as well. We will help campus expansion over in the Harwood campus, and then potentially in the middle part of the state around Jamestown. So there is a there is a new WBI pipeline that WBI is owned by MDU that they approved and are move.

Moving forward with that pipeline. it is been in the works for years and so we. We will be an off taker of gas at center and at Harwood for certain and possibly in Jamestown. But the way we have worked that with the gas pipeline is to have almost unlimited capacity for expansion of center. it is gonna be the closest location to the beginning of the pipeline, and then these pipelines typically taper the further they go out.

So to have really big expansion capability at center, this will all be front of the meter grid connected, but also expand at different locations across the state. From an equipment perspective, you know, we are looking at procured equipment that is roughly 2.4 to 2.5 gigawatts of generation capacity there already. But we expect it to go significantly larger given the demand that we are seeing in the future there in North Dakota.

Sure. I mean, supply chain, I think, is tight across the industry and some components more so than others. The biggest we have talked about this before from a supply chain perspective. The biggest thing we did was, almost 2 years ago, lock in key components in the supply chain with certain of our suppliers. And in some of those instances, we actually purchased full factory capacity output from certain factories for, I believe, a 4 year time frame.

To make sure that we had those key components locked in. So that is been a big help to us. We are pushing to upsize that amount that we can take because we think as we go out 2028 and 2029, we are gonna need more supply chain to continue to build to the demand that we are seeing in the marketplace. But that was the key piece for us as putting those relationships, those key relationships in place quite some time ago to make sure that we are locked into our places in the supply chain for key components.

Thanks, Robert.

Yeah, that is right, George. Is the you know, the company today is in a different place. Versus what it was a year ago. And we have a limited amount of capacity to build, and so we are we are being more selective with the customers that we will build for. And that you are right on the on the credit quality aspect of that.

Well, what we are pushing for on that George, and we are-- I forgot to get into too much detail, but we have talked about this before, which is potentially longer duration and higher significantly higher lease rates. Do not want to pin that, but you know, if you can think of definitely north of 15%-plus increases on the lease rate, but also could include longer duration on the leases. that is how we are defining that.

Thanks, George.

Sure. So, we view the site that we found in Finland. You know, it felt a lot like the communities that we build in North Dakota. So there is there is a really positive receptivity from a local level on the community level. The country is a as a whole has been fairly receptive to data centers. So we really focused on that for our you know, to make this decision on the site plus, you know, the land availability, the fiber.

This site happens to be about 30 kilometers from a self build of 1 of the large hyperscalers. And then as far as the staging of the of the power, the first 100 megawatts is available in 2028. And then it continues to ramp up through 2031 to the full gigawatt.

Yeah. So thanks, John. And I will just clarify. I saw here we went right to the 4 gigawatts. It was 3.5 to 4 gigawatts that we talked about by the end of 30. So that is really from a power perspective. We have power in the power pipeline. Some of that includes the additional capacity from base electron that comes on in 2030. But from a power perspective, we believe we have that in the pipeline. This was really an exercise around how much can-- more can we ramp up our build and delivery And if you kind of work through the math, us internally, if you want to get to the high end of that number, to get to the high end of that number that really has us delivering about 1 gigawatt per year in 2029–2030.

Right? So, kind of if you take a bridge to the end of 2020. Calendar year 2028 getting to around 2 gigawatts, we as a company think that is kind of the level we can ramp our construction and delivery up to. So that. it is really those 2 things combined, but much more so on the ability and capacity to do construction and deliver for customers.

Yeah. So thanks for that question. that is a great question. So when we look at that right now, and you will see, you know, over the coming month or so, the strategy we are using to secure data center capacity for ChronoScale is outside of the large scale applied digital sites. Those sites we contract to what we have said, which is tier 1 you know, investment grade hyperscalers. The ability to secure other capacity we have found a nice strategy for securing, more near term grid capacity that is not at that scale at a single location, but at multiple locations, But I think you could see ChronoScale moving up to multiple hundreds of megawatts in capacity online outside the core applied digital data center builds.

It would be, you know, over 27 and 28. But I wanna bifurcate this where there are 2 separate strategies where, you know, Applied Digital strategy is it remains the same build for high quality tenants at large scale. And then we are using our knowledge base to help chronoscale secure capacity at sites that are more like, you see the first Microsoft site of 50 megawatts that are kind of 50- to 100-megawatt, sites that have been passed over.

Because they are. They do not scale to the gigawatt side or the multi-hundred-megawatt sites. But there is a lot of those around the country that are grid-tied that we think we can help them bring online over the next you know, 2 or 3 years. A significant amount actually in 2020. So that is really I appreciate you letting me make that clarification around the strategy.

Thanks, John.

The. So The-- so Macquarie-- I thought you said CoreWeave. I was going to talk about the partnership there. Macquarie is North America. That partnership is in North America. Saying we could not have something similar, but current agreement we have is just North America.

So I will tell you where we are seeing a change. So we are seeing a change over the past, you know, 18 months on the tenant fit out or the technical fit out TFO. And what we are seeing is, because we execute that for in almost. Actually, every lease that we have, we execute that. The TFO has become much more flexible. That is what I would say. So if you roll back a year ago or especially 18 months ago, the TFO we would know exactly what was going into our data center based on the TFO.

And now we cannot really tell, the TFO you know, become a larger dollar amount for our customers. But I think they are building in a significant amount of flexibility inside the facilities to be able to accommodate whatever workloads they want to deploy and that, you know, between we talk like, GPU, TPU, but I think it is also in the amount of CPU mix, the storage, all of those pieces, network topology. But that is that is really where we are seeing that.

I think that is a great place for ChronoScale. Now just to clarify on that, are you talking about like, the containerized solutions that people are talking about for, you know, edge compute or just a 20-, 50-, 100-megawatt containerized solution?

Multilayer. We are looking at those. that is a-- that is 1 of the ways where securing data center capacity at ChronoScale is those types of modular builds on a smaller scale.

Thanks, everyone, for joining our call, and we will look forward to speaking to you again in January.