Lease Validation & Demand
Multi-year commitments, capacity overfilled timeline, and revenue security.
Market Demand
3x Capacity
Lease Rate
$212/kW
Lease Rate Comparison
Monthly rate per kW
Lease Rate Comparison
$/kW/month NNN Rate
Demand Validation
Market research identifies addressable demand representing 3x planned capacity (300+ MW opportunity vs. 100 MW total capacity). Phase 1: 20 MW anchor tenant identified. Phase 2: 55 MW prospective demand for 30 MW capacity. Phase 3: 125 MW demand pipeline for 50 MW capacity.
Lease Rate Economics (Base Rent)
Traditional Colocation NNN Lease Rate (Base Rent): $85-$95/kW/mo. AI Hyperscale Market Standard (Base Rent): $125-$140/kW/mo, up to $180-$250/kW/mo. Target lease rate is $212/kW/month base rent for AI-Ready capacity, sitting comfortably in the AI/HPC Turnkey band. NNN pass-through costs (power, cooling, maintenance) typically add $40-$60/kW/mo.
Revenue Model
Gross Revenue per kW: $212/month. Operating Expenses (estimated): ~$93/kW/month (44%). Net Operating Income per kW: ~$119/month. This yields a 56% EBITDA margin on gross revenue.
Lease Term Structure
Traditional Lease Term: 3-5 Years. AI/HPC market standard lease terms: 10-15 Years, aligning with GPU useful life cycles and securing long-term cash flow. Lease Escalation Rate (AI/HPC): 3-4% Annual.
Revenue Security (Take-or-Pay)
The Master Lease Agreement (MLA) must include a "Take-or-Pay" clause for power/capacity, obligating the tenant to pay for reserved capacity upon "Energization of Substation," regardless of server arrival. This mitigates the financial risk of infrastructure lag.
Tenant Profile
Target tenants are AI Cloud Service Providers (CoreWeave, Lambda) or Hyperscalers (Meta, Oracle), specifically seeking high-density bare metal capacity for NVIDIA H100/Blackwell clusters.
PUE Mandate
AI tenants will demand a PUE Cap of <1.25 in the lease structure. The facility's target PUE of <1.15 provides headroom for tenant requirements.