Paul Kudrowski

It doesn't change my income.

So we're seeing for the first time over the last six, seven months, the beginnings of a wave of these special purpose vehicles and other more exotic financing structures.

We're seeing the equivalence of some of the old collateralized debt obligations emerge where there's tradable debt interests in data centers.

These are all, for me, the beginning of the sign that the bubble is becoming tired because the market is beginning to punish.

At least there's perception that the market will punish me if I continue to keep this on my income statement.

So I won't.

I'll move it somewhere else.

And that makes the entire process much more opaque.

It's

almost obfuscatory in terms of preventing people from understanding it.

Like, how do I go through all these, the footnotes of all of these statements?

And so that for me is, that's the thing to watch.

People get hung up on, I think, a lot of the wrong things in terms of trying to assess what's going on.

Like, for example, is the rental rate of GPUs now competitive in terms of the actual costs of running the center?

These are good things to look at, comparing your costs to your rental rates, but look at it from the company's standpoint.

How hard are they trying to hide the expenditure?

And for me, that's the factor to watch, and it's just begun accelerating.

So the idea, obviously, is you can look at it from a couple of different ways.

One is that the private credit firms, the Apollos and others, want a stake in data centers, but they also want their stake in data centers to be in a data center that has built-in customers.

So from their standpoint, I can write a large check, and if I partner with a Meta or a Google or whoever, there's a high likelihood that immediately people will be using it.