Part 8 of 9

Construction & Contractors

Critical path, long-lead items (transformer, cooling), and risk mitigation.

Phase 1 Target

22 Months

Transformer Lead

72+ wks

Long-Lead Equipment Timeline

Procurement Timelines (2025 Benchmarks)

Critical Path Driver

The project timeline is entirely dictated by the supply chain for electrical infrastructure (transformers/switchgear) and mechanical density equipment. Target timeline for Phase 1 Sprint (20 MW operational capacity): 22 Months to First Byte.

Long-Lead Items (2025 Benchmarks)

Main Power Transformers (Substation): 72+ Weeks minimum. Generators (2-3MW units): 72-104+ Weeks (18-24 months). HV Switchgear: 52-90 Weeks. Coolant Distribution Units (CDUs): 30-45 Weeks. Large Centrifugal Chillers: 48-60 Weeks.

Construction Draw Schedule

Banks enforce "Equity First" on construction loans. Months 1-4: Site prep, civil, deposits (~$27MM, equity). Months 5-9: Foundations, steel, substation (~$64MM, equity). Month 10: Debt draws begin after $91MM equity exhausted. Months 10-15: Enclosure, MEP, equipment (~$120MM, debt). Months 16-18: Fit-out, commissioning (~$49MM, debt).

Permitting Timelines

Air Quality (TCEQ) permitting: 12-18 Months. Water Rights (SAWS): 6-9 Months. Grid Interconnection (CPS Energy/ERCOT): 18-36 Months.

Risk Mitigation Strategy (OFCI)

Adopt the Owner Furnished, Contractor Installed (OFCI) model for Transformers, Generators, and Switchgear to control the procurement queue and secure production slots. This enables ordering before full design completion. The $10-15M Seed Raise funds these deposits immediately.

Contractor Model

Use a Construction Manager at Risk (CMAR) or Design-Assist model, engaging a Tier 1 mission-critical GC (e.g., DPR, HITT, Holder) immediately for pre-construction services.

Mechanical Expertise

The Mechanical Subcontractor (e.g., TDIndustries or Brandt) is critical for handling specialized CDU loops, orbital welding, and SAWS recycled water systems integration.

Phasing Mitigation

Physical segregation of Phase 1 (20 MW) protects the $50.9MM ARR from disruption caused by Phase 2 construction activities.