Lucas Pipes: Thank you, Wes. On the HPC side, can you walk us through the capital intensity with many of the planning completed from what I understand. And in terms of financing, what are your current targets for debt to equity? Is it project financing that would cover the majority of the capital needs? We’d appreciate your thoughts on that. Thank you.
Wes Cummins: Yes, sure. So on the data center business and we’ll go through this in great detail on Thursday. But we — I think a lot of people have seen. So we redesigned the data center with the knowledge we have now. So what we built in Jamestown, which was the initial build that we talked about, it was single-level horizontal because that’s the cheapest way to do it. And we have plenty of land in North Dakota, and so it’s going to be just build it as far as you wanted to horizontally. But now that we know how these workloads work and the necessity of them being all much higher density closer to the network core. We redesigned our structure that to a three-story structure that has network core that runs through the middle so that you can get much more density for specifically for training and then somewhat for inference.
But with that redesign, you should be thinking, we talked before about kind of $4 million, $4.5 million that we’re looking more around $6 million per megawatt to build those facilities. We think with the work that we have done that we can get roughly an 80% loan to cost for construction, this is — looks much more like data centers, so we get — secure that tenant or tenants that are credit-rated, then we can put the construction financing in place. And then there’s an equity component, but we call it site level equity and you can get financing partners on the equity component of that as well. That we’re — we’ve spent a lot of time talking to there and you should — it’s usually in the data center industry is called the equity financing, again, it’s at a site level, but I think of it more as what we would see in the capital markets as like mezz debt.
So we’re working through all those pieces of the capital structure to finalize and start the initial build in North Dakota. I guess technically, Lucas, not our initial build. It’s the initial build of this design.
Lucas Pipes: Understood. Thank you very much, Wes. I’ll try to squeeze one more in. In terms of the 34,000 GPUs today versus 26,000 GPUs previously, would those be related to the additional two customers you announced or are there other moving pieces there?
Wes Cummins: There’s other moving pieces. It’s really more related to the demand we continue to see. We haven’t seen demand in this area slow down. I think if you go look through the capital raising in the industry hasn’t slowed down. There was a large deal, I think, announced with Anthropic was that last week with AWS. But we’re still seeing a robust funding environment for the companies that will be customers for us we see good demand, really strong demand in our pipeline. And so it’s really just a decision based on what we’re seeing from a demand perspective.
Lucas Pipes: Okay. Very helpful. I appreciate it. And to you and the team, best of luck.
Wes Cummins: Thanks, Lucas.
Operator: Next question comes from the line of Darren Aftahi with ROTH MKM. Please proceed with your questions.
Darren Aftahi: Hey, guys. Good morning. Thanks for taking the questions. Wes, could you speak a little bit more to the cadence on the GPU orders? I’m just kind of curious if you can talk month-to-month in September and in October. Are those numbers getting bigger relative to the initial 1,000 order? And then I guess why is the cadence kind of hockey picked up into November, December and January for your comments. Is that just a function of backlog? And I guess what’s your confidence that number isn’t kind of pushed out further into ’24?
Wes Cummins: Yes. So it’s a good question, Darren. So what we saw in September is our second 1,024 cluster, 1,024 GPUs being delivered. And in October, we could see that be doubled and then get significantly bigger in November and December and into January. And it’s just the — our order book that we put in back in the May time frame, starting to be delivered, you get small pieces. And then it’s the schedule that we’ve been given as far as when deliveries will happen really between now and the end of the calendar year. So that’s what gives us that confidence in the deliveries, can things be pushed. I mean that it could always happen, I suppose, but it seems that we’ve — this is probably trying to think when it was maybe three weeks ago, we’re given or a little bit longer than that, kind of a firmer delivery schedule from our suppliers.
So feel pretty good about the deliveries for us. And I think it’s just a matter of when we ordered those and when they’re being shipped out and kind of the cadence of that ramping up over the next three months. I don’t know. I don’t think it’s for me to say whether there’s better supply in the industry or not or if it’s just related specifically to us that I don’t know.
Darren Aftahi: That’s helpful. Thank you. And then just one last one for me. On the anchor tenant with HBC, you have multiple tenants you’re talking to? And I guess, in terms of slotting people in, I mean, how close are we to North Dakota vis-a-vis Utah? And then I assume your data center financing is probably going to be right behind that based on kind of your prior comments. So if you just kind of walk through, I’m just trying to understand kind of anchor tenant demand relative to the capacity you have and then kind of a longer-term plan. Thanks.
Wes Cummins: Sure. So we’re seeing a lot of interest. We’ve been having these conversations for a few months now. And then in the first week, the end of the first week of September, we finalized our design. And so we’ve been in a, what I would call, a formal marketing process from that point. Until now, and we’ll move that into an LOI stage and into a contracting stage over the next few weeks or a month or so that’s the expectation, but that’s kind of how it’s come together as it really started a formal process in, call it, mid-September, and we hope to conclude that in the coming weeks. But the interest is high, and we’ll go through this in more detail on Thursday. But it’s — the demand for this style of data center with this type of density because we’ve been both out getting colocation space for ourselves on the cloud side and then talking to potential customers on the data center side for building our own.
We’re seeing a huge amount of demand and really demand for power that is available in capacity that can come online over the next 24 or 36 months.
Darren Aftahi: Thank you.
Operator: The next question comes from the line of Mike Grondahl with Northland Securities. Please proceed with your questions.
Michael Grondahl: Hey, guys, thanks. A couple of questions. The first on potential anchor tenants. Would you say the potential anchor that you’re going to announce near term, is that still sort of wide open, meaning there’s still multiple five, six, seven big potential anchors out there you’re talking to? Or have one or two kind of made it way down the funnel and you’re just kind of finalizing who it might be out of a very small group?
