Paul Kudrowski

It's increasingly the case that you've got nowhere to run.

And in a backdoor kind of way, private credit now is now allowed inside of...

retirement funds, you're seeing increasingly these showing up in other ways, not just as REITs, but let's say I'm an investor in private credit, thinking that as a retail investor, I'm now investing in, I don't know, take private operations for a manufacturer in Iowa.

No, you're not.

You're in data centers.

And by proxy, by being in data centers, you're also in NVIDIA.

So this notion of...

It's a complex system, but there is a single point of failure.

And in this single point of failure is a couple of semiconductor stocks who are highly leveraged to everything that's going on and yet have kind of metastasized across each of these pieces from the S&P 500 to REITs to private credit to backdooring their way into new private credit ETFs.

It's incredibly insidious and important, and yet most people haven't even realized how deeply it's insinuated itself.

So I think the news headlines are, for starters, it would be the largest share of future building in terms of data centers is all through SPVs.

So for me, it's people saying, oh, look, it's now all being done in partnerships.

It's not as risky for Meta.

It's not as risky for Amazon.

Look, they're partnering.

For me, that would be the hallmark of a bubble that's hitting the point of, okay, we need to really be paying close attention because the companies themselves are stepping away so aggressively because they see the effect this might have on them.

And the other thing to watch for is...

Delays in terms of the provision of air conditioning and other of these ancillary equipment that's incredibly important.

Interconnect gear for interconnecting racks and GPUs inside of these centers.

Delays at one point were going out to four and five months.