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Wes Cummins

👤 Speaker
430 total appearances

Appearances Over Time

Podcast Appearances

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

But what you have with that

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

is you can just look at what we've contracted.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

Okay, so we have 23 and a half billion dollars of contracted revenue over 15 years.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

So take 23 and a half billion, divide it by 15.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And that's what our annual revenue on the very low end, that's our current contracted revenue on the very low end.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

That's the locked in lease number.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

the revenue will be higher because there's some other revenue pieces that come in with that power pass through, uh, the TFO that we report, which is on the front end.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

Um, but that's the locked in revenue number, right?

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

Um,

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And so take 23 and a half billion dollars divided by 15 years.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And then we we've guided for margins.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

So take, you know, a high eighties to low nineties margin on that.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And that's, that's what flows through.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And then, and then you take our corporate overhead.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

So go, go really fat on the corporate overhead and say it's a hundred million bucks per year.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

Right?

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

So if I, if I take that and you run those numbers,

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

That's what we have contracted right now.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

So you can say that there's well over a billion dollars of EBITDA or cash coming out every year.

The Rundown
How Applied Digital Became the Landlord for Big Tech’s AI Buildout

And so I'm supporting 2.8 billion of debt off of that.