Paul Kudrowski

So you can see how the same thing would happen through a back door that doesn't look like it has anything to do with data centers.

And it's because the nature of the funding of the providers of this debt

private credit firms, is increasingly tied to a sector whose obligations don't match the returns from the data centers.

And that specifically is insurance firms, which are increasingly owned by private equity firms.

And that's not nearly well understood enough, that the nature of the capital structure in the economy that's driving this has changed.

And that's created a new source of risk because of this temporal mismatch.

So I've had this discussion with Michael Semblers.

So I'll tell you.

So here's the way here.

The nut of the discussion we had was about this difference between what we're earning right now and what a data center earns on renting out GPUs versus what its costs are.

So let's say I can rent for $35 an hour and it's costing me $12 an hour.

the combination of air conditioning power and the net of my debt on this.

That's a $23 per hour gap.

So let's say that gets halved over the next two years.

That's still a huge premium over the costs, the rental cost of these data centers.

So as much as you might say...

The capital flowing into this is going to cause a big hit.

It's still very competitive as a commercial real estate play, if you will, in terms of the amount of premium I'm earning on top of my costs.

That's a perfectly sound argument.

You could make that argument and say that, yeah, we used to earn, I don't know, $25 or $30 an hour of straight margin on top of the cost of these data centers from a rental standpoint.