John Medina

Pretty much every market we're seeing is double-digit growth across the board.

We are adjusting our forecast to look at the International Energy Agency forecast.

We actually think our internal forecast aligns more with theirs.

for what's realistic growth and they're actually seeing about 14 increase in global capacity in the next year which is coming off a 20 growth the year before and most of that is in the us you know to be honest we're the largest market at about half of it we're seeing an acceleration as new data centers are opening and coming online and others are starting construction at the same time

They're getting larger and larger, and almost all of those are in the United States right now.

There are other large developments you've heard elsewhere, particularly in China and in Asia, with Europe kind of a little bit slower, but still having large developments coming in, and Latin America kind of coming up at the sort of rear there, because it's a smaller market, but looking to grow and expand, given they have good renewable resources and cheap costs of labor to build.

But pretty much every market that we're seeing is double digit growth across the board.

I think that's the million or now trillion dollar question, frankly, in this space, because there is a lot being built and it is being built essentially in a race, right?

We're racing to build new computing capacity to build new products that don't exist yet, right?

So there is an element of that capacity built for something coming.

But what I can say is all of this is pre-leased, meaning long-term leases from high investment grade rated, you know, big tech companies.

So

Even if they may not use it in the first few years, they're still on the hook to pay for it.

So I think we're going through what could be considered a rational bubble, meaning we need all this growth.

And it's hard to predict what exactly the demand will be because a new model comes out tomorrow, creates a new product.

boom, everybody uses it, right?

There's a lot of new services that you're actually seeing a greater focus like in China, more on the inference, more on the use of the AI models.

Whereas here often in North America, we're looking at building, getting to that generative AI, building the best models possible and sort of use cases are going kind of at the same time.

So the question of overcapacity, no one's really gonna know for several more years because everything that's opening is really being used because right now we have a backlog of need for computing.

Yes, water is always local, right?