Financial Model Phasing
CapEx per MW, OpEx breakdown, ARR trajectory, EBITDA, and IRR/payback.
Stabilized YoC
11%
Cap Rate
6.5%
Financial Projections
Revenue, OpEx, and NOI ($M)
Development Phase Progression
Revenue & Returns by Phase (100 MW Total)
Full CapEx Breakdown
100 MW Build-out ($M) - All Three Phases
CapEx Breakdown
Capital Expenditure Distribution
Strategic Interlock & Cash Flow Draw Schedule
| Month | Grid CapEx ($M) | DC CapEx ($M) | Narrative |
|---|---|---|---|
| M-01 | 20.0 (57%) | 2.0 | Interlock – wire CIAC to CPS Energy. |
| M-03 | 2.0 | 10.0 | Design – engineering & deposits. |
| M-06 | 1.0 | 30.0 | Civil – grading, substation pad, conduit. |
| M-12 | 2.0 | 80.0 | Shell – steel erection, roof, floors. |
| M-18 | 5.0 | 100.0 | MEP – chillers, switchgear, generators. |
| M-22 | 5.0 | 20.0 | Energize – substation commissioning. |
| M-24 | 0 | 18.0 | Live – final retainage, tenant move‑in. |
Target Metrics
Target Stabilized Yield on Cost (YoC): 11-13%. Target Annual Recurring Revenue (ARR): $2.54MM per MW ($212/kW × 12 months). Target Stabilized EBITDA Margin: 56%. Market Cap Rate for stabilized Tier III assets: 6.5%.
Phased Deployment Model
The model uses a 100 MW phased deployment: Phase 1 (20 MW, 22 mo operational), Phase 2 (30 MW, 30-36 mo), Phase 3 (50 MW, 48-60 mo). Total project CapEx: ~$1.3B at $13MM per MW.
CapEx Per MW
Target CapEx for AI-Ready (Liquid Cooled) facilities: $13MM per MW. Phase 1 is front-loaded with substation and campus infrastructure costs. Phase 2 and Phase 3 benefit from existing infrastructure, reducing incremental CapEx.
CapEx Breakdown (100 MW)
Land & Civil: $20MM. Substation (138kV): $30MM. Core & Shell: $200MM. MEP Infrastructure: $850MM ($8.5MM/MW). Soft Costs: $100MM. Development Fee: $40MM. Contingency (5%): $60MM. Total 100 MW: ~$1.3B.
Phase 1: 20 MW
Build-out cost: $260MM ($13MM/MW, capital intensive with front-loaded substation). Annual Revenue (ARR): $50.9MM ($212/kW × 20,000 kW × 12). Net Operating Income: $28.5MM (56% margin). Yield on Cost: 11.0%.
Phase 2: 30 MW
Additional build-out cost: $390MM ($13MM/MW). Cumulative ARR (50 MW): $127.2MM. Cumulative NOI: $71.2MM. Blended YoC: 11.0%.
Phase 3: 50 MW
Additional build-out cost: $650MM ($13MM/MW). Total ARR (100 MW stabilized): $254.4MM. Total NOI: $142.5MM. Total CapEx: $1.3B. Blended YoC: 11.0%. Market demand represents 3x planned capacity (300+ MW opportunity).
Capital Stack (Phase 1)
Senior Construction Loan: $169MM (65% LTC at 7.5% interest). Sponsor Equity ("The Ask"): $91MM (35% LTC). Seed Raise (immediate): $10-15M for land rights and long-lead equipment deposits. Closing Raise: $76-81M at financial close.
Debt Service & DSCR
Phase 1 Annual Debt Service: ~$12.7MM (interest only at 7.5%). NOI: $28.5MM. Debt Service Coverage Ratio (DSCR): 2.24x. Lenders require minimum 1.25x DSCR; this provides significant cushion for financing.
Valuation & Refinance Strategy
Phase 1 Stabilized Valuation: $438MM (NOI $28.5MM / 6.5% Cap Rate). Value Creation: $178MM ($438MM - $260MM cost). Refinance Proceeds: ~$116MM (new loan at 65% of value minus payoff of $169MM). This "Refinance Roll" funds significant portion of Phase 2 equity requirement.