Paul Kudrowski

To disconnect them if things become really difficult.

Well, of course, if you're a data center, you're like, yeah, no, that doesn't work for me.

And that's not going to work.

And so you can see if you look underneath the hood, how the tensions are beginning to play out in ways that cannot be resolved straightforwardly.

We have energy inflation on the one side, and we have these somewhat dodgy interconnection agreements being proposed where we propose that someone will actually be cut off from the grid, meaning a data center will be cut off from the grid.

And that's just not going to fly.

Even if I sign on to that now, rest assured I will sue you in two years if you do it to me.

100% the lawsuits will be just massive.

Even if I agreed to it today, I will sue you in two years.

So I think you're going to rapidly see an offshoring of data centers.

So that will be the response.

It'll increasingly be that it's happening in India, it's happening in the Middle East, for example, where massive allocations are being made to new data centers.

And it's happening all over the world.

In China, we're to the point that there was recently a warning from the Chinese government that every city does not need its own data center.

Because what they're trying to do, obviously, is create a massive oversupply at the local, regional level.

There's an incentive to create these things.

And so you'll see...

Wags aside, because it's nice to have a data center located locally to you in terms of actually providing services.

Nevertheless, the focus will increasingly move offshore for exactly this sort of NIMBY-esque reason.

And there's been some great... Bloomberg had a great story the other day about an exurb in Northern Virginia that's essentially surrounded now by data centers.