 Hello everyone, welcome back to JSA TV and JSA podcast coming at you live from DCV Virginia today We are we are talking about the latest stories trends and innovations with digital infrastructure leaders like John Day has been in the industry for quite a while and we're excited to chat with you chief chief commercial officer with clean arc data centers Welcome. Thank you for joining us John. Thank you for having me. I appreciate it. Yeah, absolutely So we'll dive right in so clean arc was founded relatively recently all things considered So could you tell us a little bit about why the company was founded? Sure. So so clean arc is as you said a young new hyperscale data center development platform and it was founded by a fellow named Jim Trout who is Pretty well known in the business. You know, he was the founder of core site He was a digital realty trust in the early days and then found advantage data centers And a few years ago Jim was looking around at the market talking to other players in the market And he felt like there were a couple things a couple opportunities that weren't really being addressed or weren't being addressed in the way The gym, you know thought thought that that might be more effective The hyperscale tenants on whom we're focused were really looking for larger campuses to be able to have room to expand on the campus rather than being You know isolated to one or two buildings. Yeah, so developing its scale. We didn't see a lot of that going on at the time Second was tackling the renewable energy sustainability question Jim thought it would be really impactful to found a data center company where Addressing that renewable energy angle as one of the founding pillars of the business Would help tackle that problem a little bit a little bit more readily rather than after the fact and the third There were a lot of companies out there that were doing some really interesting things with with modular Manufacturing and Jim thought that Whole concept could be extended further into what he calls data center production instead of data center construction Yeah, I love that data center production. So you've told us a little bit about why the company was founded Thank you for that overview. It's perfect. Lots of huge names and that overview and can you talk a little bit about? Clean arcs kind of value proposition. What makes you all stand out? I think you articulate this really well There's a few a few points behind it Yeah, and and so really because of those opportunities or gaps that that Jim saw in the market No surprise that The the the main elements of the value proposition are built around those things and how to try to address those opportunities So the first we are developing its scale. So we're looking for Large parcels in tier one or tier one adjacent markets within just a couple milliseconds of the closest network node or carrier hotel And we're looking for anywhere from two to three to five hundred acre parcels where we can deploy You know three four hundred megawatts of data center capacity over time again to give our tenants The comfort that they can grow with us if they like the site and they like us as operators We want to make sure that we we give them plenty of runway to be able to grow with us over time So that's the first is to develop its scale the second is that renewable energy angle so a lot of times that's getting addressed sort of After the fact, you know, how does the tenant? deal with Carbon offsets for the data center power that they're consuming on site And so what we're trying to do is tackle that in advance where we're curating a portfolio of renewable energy projects We're not developing them ourselves But we're working with renewable energy developers to curate a large amount of renewable energy in the service areas Where we're deploying the data centers where we're building the data center So rather than purchasing wind power from Wyoming to offset the carbon Emitted from a data center campus in Virginia We actually are working with those developers to develop wind solar and other types of renewable Sustainable energy sources to offset the power that's being consumed on our campuses in that region of the country So it's what it's what the team calls true Additionality where we're actually there there are new green electrons being brought onto the grid as a result of our Development efforts in in coordination with the development partners on the solar side or on the renewable side So that's the second is and then our I should finish that off our tenants Then we'll be able to take that as an option to their lease. They're not they don't have to it's not a requirement But if they if they want to sign a lease with us, they know in advance, they'll be able to take That same number of megawatts in renewable energy to offset what they've what they've leased from us So that's the second and then the third is what we're calling OSM or off-site manufacturing OSM prime and and again there were companies out there that we're doing really cool things in this area but what we're trying to do is take that even further and manufacture large building blocks of the mechanical and electrical systems the power in the cooling systems at off-site Manufacturing facilities where you have a greater amount of control in terms of quality Testing and then shipping those big building blocks to the data center site where they're basically just dropped in like big Lego blocks And it delivers, you know a whole host of benefits. I won't go into but probably the the most Critical for for our tenants is speed to market. So we think we can by doing this we can reduce the time to deliver a building by 15 to 25 percent So we're not we're not naive or uninformed there's there's other great companies that are doing pieces and parts of these things or You know some that are that are kind of following or in the same track that we are We think we're doing them in a unique fashion compared to other people in the market And we think we're the only company that's doing all three under under a single umbrella. Nice So develop at scale renewable energy and off-site manufacturing just kind of in a nutshell. That's right. Yeah, perfect Perfect, excellent. So and you know just talking personally a little bit here You've been in the industry for quite a while like we were saying before works at a few companies over the over the years So what makes you excited to still be in the industry today? What kind of keeps you excited about being here? Yeah Great question. So I for me It's it's sort of a couple things they all sort of tie together But you know One of the things that I think is really fun about being in this business is we're just in we're at the end of the First generation of the data center business So there's a lot of people who are in this business that we all work together at entry-level positions coming into this into this industry 20 years ago when it was really again just sort of emerging as its own standalone asset class in the real estate business And so a lot of those people are still active today. They're they're still at this conference You know, we walk around we see each other So it's it's an industry that's got a significant impact on the the national and the global economy But it's a relatively small community of people and and we're really You know a lot of us a lot of people a lot more than me But are helping to sort of shape this this industry that again, you know The software business has been around for I don't know 50 years the banking business has been around for hundreds of years The data center industry is a standalone business has really only been around since the late 90s And a lot of us have been active in it, you know since then and still today So so I think that is is one of the things I like most about it and then just the opportunity right now I mean the demand side is just through the roof It's all we can do to try to find sites that have enough power or we can deliver capacity to our potential tenants so It just the opportunity right now the upside and the opportunity is tremendous and then the wonderful community that we have Yeah, I love that. Yeah, that's such a good way of looking at it It's a relatively new industry and there's folks who have been around from the beginning And it's so exciting to be able to come to events like DCD, Virginia and to meet up with those people So excellent. Well, thank you so much for joining us on JSA TV again. Thank you for having me. I appreciate it Thank you and thank you viewers for hanging out with us here live at DCD, Virginia today. Happy networking