And now you can expect that they are 9 plus. So we’re – and these are all pre-leverage, cash-on-cash returns. So the returns are even with the ramp in the cost to build – well, the cost of build is obviously built in, but in terms of the cost of financing is well ahead after you put the data center together and lease it up is well ahead of our cost of capital. So we feel really good about the returns we’re getting even in the higher interest rate environment.
Barry Hytinen: Hey, Eric, it’s Barry. A couple of things there. We would expect CapEx for the whole company to be probably right around $1.3 billion for the year. That’s up some from our prior view because, as you point out, the team continues to do very, very well on data center, and we have a lot of construction to do to service the contracts that the team has signed. It’s an interesting point about our business within data center, and we’re operating now 225 megawatts, which is nearly all leased. And then we’re under construction on another 260 megawatts, of which again, like 90% plus, 93% of it is pre-leased. So we are really constructing to contract as opposed to spec. And so it is a situation where you will see us continue to be gradually rising the data center CapEx as we work to build into the contracts that we’ve signed.
And I think it’s – read it to the team and the customer wins that we’ve been having that we’ve been able to extend our lease expirations to eight plus years on the backs of higher pricing and those returns improving. So it’s – we are feeling very good about where we’re positioned with data center and the growth thereof, Eric. You’re going to see a lot of growth going forward as we build into those leases. Thanks.
Operator: [Operator Instructions] And our next question comes from Brendan Lynch of Barclays. Please go ahead.
Brendan Lynch: Good morning. Thanks for taking my question. I wanted to dig in on the opportunity in Miami to convert storage facility to a data center. One, are you fully scrapping the existing facility and just using the land? Or are you actually using the existing infrastructure? And what do you see as the other opportunities throughout your portfolio to convert other facilities for data center purposes?
William Meaney: Good morning, Brendan. Thanks for the question. So the – yes, so in Miami, you probably can imagine, yes, we are actually scrapping the building. So we’re reusing the land in that particular case because it’s the way that we could get the most data center capacity into that facility, otherwise we would have been leaving much opportunity on the table. So it’s a better use or a better way of actually tapping into that market. But it still gives us kind of – if you look at an all-in basis, probably a 15% reduction in cost to build. And obviously, the speed at which we can enter the market is much faster because trying to find the right location of land in Miami and secure the power can be challenging. So we think both in terms of speed and then 15% cost improvement, which is significant, is really important.
And if you look more broadly of the 90 million square feet of industrial real estate that we have around the globe that’s associated with our records management business is – think about that’s probably in the order of 15% to 20% of the properties are under evaluation on any given day as we look at it. So we’re constantly screening about 15% to 20% of our locations and looking at what customers’ requirements are and in some cases, having discussions with customers and thinking about which of those sites might be next. And these are generally fit in very nicely for what I call these kind of edge deployments or secondary cities like Miami, right? So this won’t be the last one that we – the first and the last. This will be the first of many, we feel as we continue to go forward.
Operator: This concludes our question-and-answer session and the Iron Mountain third quarter 2023 earnings conference call. Thank you for attending today’s presentation and you may now disconnect.
