Good day and thank you for standing by. Welcome to the NUAI's third quarter 2026 business update conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lincoln Tan, Investor Relations at New Era. Please go ahead.

Thank you, operator, and good morning. My name is Lincoln Tan, Investor Relations for New Era. Thank you for joining our third quarter fiscal 2026 business update call. Joining me today are Charlie Nelson, Chairman and CEO, Ted Warner, President and CFO, Jose Rodriguez, Chief Operating Officer, and Evan Pierce, Chief Development Officer. Before we begin, I'd like to remind everyone that today's call is being recorded and will be available on the Investor Relations section of our website. For those dialed in by phone, you can elect to ask a question through the moderator after our prepared remarks. certain statements made on this call that are not historical facts, including those related to our future plans, objectives, and expected performance are forward-looking statements. These forward-looking statements represent our outlook only as of the date of this conference call. While we believe any forward-looking statements made on this call are reasonable, actual results may differ materially because these statements are based on our current expectations and subject to risks and uncertainties. These risks and uncertainties are discussed in our filings with the SEC including our most recent annual report on Form 10-K and quarterly report on Form 10-Q. You should refer to and consider these factors when relying on such forward-looking information. Any forward-looking statement made speaks only as of the date on which it is made and we do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. So with that, I'll now turn the call over to Charlie Nelson.

And thank you, Lincoln. And again, thanks everyone for making the time here. So we're going to go over everything to date at TCDC and where we are as a company during this call. We've made a lot of important progress at TCDC during Q3 and into Q4. We've secured the power in our own name. We're rapidly progressing lease negotiations and strengthening the team and balance sheet really needed to move this project towards final delivery. That progress comes against a challenging backdrop. We've had multiple black swan events, the capital markets have been volatile, and investors are asking harder and harder questions about how data center projects will be funded and delivered. And, you know, communities want to understand what these developments mean for their electricity supply, the water resources, local infrastructure, and essentially a social license to operate in these different communities that we're in. And we believe that that environment makes the quality of our power position and our development approach and contracting approach increasingly important. And so since our last update, we've signed a 20-year PPA for up to 207 megawatts. In conjunction with that, we posted a $118 million cash collateralized letter of credit to be able to hold that power, which we have already completed. The power availability is expected in Q3 of 27. And this power, again, just to remind everyone, is through an existing grandfathered private use network, which is not subject to batch zero constraints within Texas. And it allows us to have this ready for service date in Q4 of 27. And we believe that we have one of the more valuable power positions at a time when customers have kind of limited alternatives on that timeline. And additionally, there are many of those in the bachelor process who are facing uncertainty around the magnitude, the timing of their power. And so, you know, we're just looking at the rest of the market, adding and compounding risk with these countless data center projects that are up for permitting. And we're sitting here relatively insulated here. And so with our permits pertaining to phase one in hand, an adjacent generation plant, and Phase One Power as part of an existing and seasoned private use network outside of the batch process. We believe the timing and certainty of our project have made TCDC an even more attractive asset going forward. And so the task now is to translate our position into a definitive lease and we can go through what we're doing there. Look, but this is a financial development plan and ultimately we want to communicate what this means in terms of earnings to our shareholders. So shortly after the PPA announcement that we made in September, we signed a non-binding LOI that covers both TCDC's Phase 1 and Phase 2 with the same prospective tenants. You know, we are now in advanced negotiations with the Phase 1 lease, and the Phase 2 lease documentation is being worked on concurrently but separately. And it's important to note that Phase 1 can proceed without Phase 2 documentation being fully complete. So they're not, those are mutually exclusive. They're not reliant on each other. And so for phase one, you know, we believe that the proposed modular approach will have, that we've referenced in our business updates, historically speaking, offer a substantially lower build cost as well as an accelerated timeframe. And, you know, we've added, since then, you know, we've added experienced development and construction professionals that will go over the whole new team to what we believe is already a best-in-class team to support our work on both phases. We also strengthened our balance sheet. Recently, we did a $64 million pipe, and that was used to pay down debt and support leasing and development activities. So now we sit here with a clean balance sheet and a project that we believe is arguably one of the most favorable in the country in the current market and beyond. And we believe that what we have done has given us a strategic advantage heading into the next phase of the company. So today we want to connect all these pieces for everyone because a lot's been going on and the power that we've secured, how we plan to deliver the project, our partnership model, how we intend to fund it. And our immediate priority is completing the lease, obviously, and putting the financing and delivery arrangements around it, giving shareholders a clearer view of the capital required and ultimately what the potential returns are. And so before going into this project detail, I'm going to hand it over to Evan right now to address directly our approach to responsible development and how we're approaching power, the water stewardship, and giving the local community a seat at the table, which is really what's the world that we've been planning and living in. And we're excited to just talk through this. So with that, I'll hand it over to Evan real quick. And Evan, go ahead.

Thanks, Charlie. I was born in Texas, I was raised in Texas, and my family lives in Texas, so these issues are important to me. Our team has deep experience in both data center development and sustainability. That experience has reinforced how critical it is to strategically address power, water, and community needs at all stages of development, including site selection, land development, design, construction, and operations. New Earth's approach to TCDC is aligned with Governor Abbott and Governor-elect Hinojosa's priorities and concerns for utility rate payers, water, and local communities. This is not reactionary. This is how we approach TCDC from the outset. Stewardship was core to our development philosophy well before these issues became a prominent part of the data center debate. Regarding power, our strategy is designed to avoid increasing transmission costs for Texas ratepayers. Phase 1 uses an existing utility connection via a behind-the-meter private use network. For Phase 2, we plan to bring new islanded onsite generation to power the rest of the site. Addressing water, We simply plan on deploying closed cooling to limit consumption at TCDC. That being said, I want to highlight a unique and underappreciated feature of the Permian Basin. This region generates a significant amount of produced water from the oil and gas industry, and we're partnering with Texas regulators and the University of Texas to evaluate how that water can be treated and reused for industrial cooling, with the aim of reducing demand on local freshwater supplies while also lowering the volume sent to disposal wells. Finally, we agree that Texans should have a seat at the table. New Era continues to engage directly with Dexter County, the City of Odessa, as well as local businesses and community organizations. We're aiming for maximum transparency, want residents to understand the development, and provide opportunities to raise questions as our plans take shape. Our project is supporting local jobs, and we want to continue to work with local suppliers and contractors whenever that makes sense. These principles will continue to guide us as we develop TCDC. Let me explain Phase 1 power in more detail. Phase 1 will be served via an executed PPA for up to 207 megawatts. This power is part of an existing, registered private-use network supplied by Vistra's adjacent Odessa Ector Generating Station. It's essentially a behind-the-meter arrangement with further meter reliability, and Phase 1 power is not contingent on progressing through ERCOT SPAC's DRO process. During Texas Senate Bill 6 implementation, the Texas Public Utility Regulatory Act, or PURA, was amended and exempts net metering arrangements registered with ERCOT prior to 2025 for the batch process. This is why we feel that TCDC is both unique and valuable. While recent commercial discussions continue to reinforce the value of near-term power, across the United States, new data center capacity in 2027 is extremely constrained due to power. We believe the combination of contractor supply, scale, and expected Q3 2027 availability makes TCDC particularly relevant to those customers. Additionally, our partnership with Vistra supports future power development, and there's an alignment of interests here. Vistra has been a great partner, and once power delivery begins, they will receive a 5% non-voting stake in the phase of power, a phase that powers. Our goals are aligned, and they have a direct interest in a long-term success of development. Customers understand this and it is a relevant consideration for how they could expand their footprint at the campus over time. And of course, delivering on that opportunity takes an experienced team. Charlie, over to you.

Thanks, Evan. At our Q2 update, we introduced several of the new senior leaders who had joined the team here at New Era. Since then, we've continued to add technical depth around them. The roles span everything from development, engineering, construction, power, operations, etc. These are people who understand firsthand what needs to happen between just securing a site and bringing a facility into full service. And these are obviously giant projects. So just to highlight a few examples, we brought on Erin Henderson. She's our Senior Vice President of Energy and Policy, who joins us from Microsoft, where she was the Director of Data Center Flexibility and Energy Infrastructure. We've got Marlene Billington, our new Vice President of Engineering and Operations, who joins us from Meta, who is a Critical Operations Manager. We have Morgan O'Connor, our new VP of construction, who joins us from AWS, where she was senior manager of construction, running a lot along their critical eastern seaboard. We have Doug Hoffmuckle and Maria Rodriguez, our mechanical and electrical engineering leads, bringing experience from Meta, ByteDance, Amazon, Microsoft. and Dana Herrick, our Director of Physical Security, who previously led global security operations at Cyrus One, who's obviously a fantastic legacy operator. And finally, just this week, we're excited to announce Ashley Alleman, our new General Counsel, who joins our executive leadership team from CleanArc Data Centers, who has also had previous roles at Cyrus One and Vistra. So just a whole ton of relevant experience here. And look, we need this collective experience as a company throughout project planning, site preparation, construction, commissioning. And our team needs to fully understand the detail and nuance around delivery obligations that we are taking on. And really, for the intended, this is to test whether the proposed schedule is achievable and to coordinate with many of the other parties that are involved to aid in the seamless execution. and we're building these capabilities obviously for TCDC, but it's not exclusively for TCDC. We're building this platform and I know we've talked about it before, but we're building a platform that enables us to continue to execute confidently with our counterparties and tenants that will not require us to rebuild the team every single process. And so just to talk through some of the phase one delivery approach, I'm gonna hand this over to Jose and then he can cover some of that.

Thanks, Charlie. The theme you just introduced brings direct experience building and operating large data center campuses. Let me explain how we're applying that experience to our own delivery approach. We are in advanced negotiations on definitive phase one lease around a proposed modular approach, which we think makes sense for a number of reasons. From a physical construction perspective, modular means completing more work offsite while site preparation progresses in parallel. that gives us better visibility of our production schedules and can shorten the path to commissioning. It also reduces our reliance on large on-site construction crews, helping us manage the risk of labor shortages as competition for skilled data center workers remains elevated. We're working with multiple vendors across various parts of the supply chain in designing for flexibility as customer hardware requirements evolve. We're also working through long lead equipment requirements. including transformers and other enabling electrical infrastructure. The networking and physical security specialists we have onboarded are also involved in the design, and we're planning for testing and commissioning from the outset. The aim is to identify and manage dependencies early on to reduce the risk of late changes impacting delivery timelines. Ted, over to you on the economics and capital requirements.

Thanks, Jose. Based on our initial estimates, we expect phase one build cost to be less than half that of a comparable traditional development. At the same time, we're negotiating what we believe are attractive lease economics that reflect the value of our near-term power and the current state of the market from a cost of capital perspective, focusing on maximizing our return on equity dollars. Alongside the build cost and lease economics, we're also seeking to negotiate favorable timing for capital outlays, leveraging tenant relationships for design and supply chain, all with the aim of limiting the funding New Era needs to provide, and even in the near term, post-signing of a face-long lease. Ultimately, the overall funding requirement will depend on our agreed scope, payment timetable, and allocation of delivery responsibilities. Once the agreements are finalized, we'll be able to explain these commitments and the economics in far more detail. What we can say now is we are working tireless to get all the details finalized for phase one lease execution. Evan, over to you for an update on the site itself.

Thanks, Ted. Alongside the commercial work, we're making tangible progress on site and continue to de-risk the asset. We own 493 acres and are under contract with Grow Odessa to acquire another 99 acres. We have an executed PSA, we've paid the deposit, and expect to close in the coming weeks. That acquisition is expected to reduce easement constraints and increase the site's capacity potential. We've secured key site approvals, and site preparation is already underway, including clearing and grading. The team has also carried out significant cleanup remediation and removed thousands of feet of pipeline. The photographs on this page show some of that progress. Our next major commercial milestone remains the definitive Phase 1 lease and we're in advanced negotiations on that documentation alongside the financing and delivery work streams. Our timing remains unchanged. Power availability is expected in Q3 2027 with initial ready for service targeted for Q4 2027. That brings us to the expansion opportunity alongside Phase 1. Turning to Phase 2, we're planning for approximately 550 megawatts of new onsite generation with Underhead Energy Solutions. The intention is to create an islanded solution supplying power directly to the campus that is not subject to the risk associated with the ERCOT batch process. Together with phase one, that would take planned capacity across the first two phases to approximately 757 megawatts gross. A Thunderhead subsidiary has filed the standard air permit application with the Texas Commission on Environmental Quality, and we still believe that permit will be approved. From a timing perspective, we expect determined deliveries in Q4 2027 and Q1 2028. Commercial negotiations continue to progress with the same prospective tenant as phase one, and we're working through separate lease documentation for phase two. We anticipate a similar build cost for phase two, which, as Charlie mentioned, would be substantially lower compared to a traditional development. Beyond the first two phases, we're evaluating the campus layout as a whole to maximize the capacity the site can support. Phase three remains in design, and its ultimate capacity will depend on the layout and the density we can achieve. Our immediate focus remains on Phases 1 and 2. Now I'll hand it back to Ted to discuss our financial position and approach to funding development.

Thanks, Evan. How we fund TCDC will have a direct bearing on the value we create for shareholders. In a volatile market, we have to balance the capital needed to move the project forward with the cost and risk of raising it. A couple weeks ago, we closed a $64 million pipe to repay Macquarie Borrowings that helped fund the credit support for our MISRA PPA. Preserve cash for the next stage of development and ultimately support our leasing work streams. Turning to the balance sheet, we believe we're in a strong cash position post-capital raise, giving us ample flexibility as we work toward lease execution and arranged project financing. As of October 31st, we had a total of $187 million in cash, comprising $49 million of unrestricted cash and $138 million of restricted cash, including collateral supporting the PPA letter of credit. We also have $20 million outstanding debt on our Macquarie facility, which is fully cash collateralized. After lease execution, we believe we will have various options to restructure the LC arrangements with the aim of releasing some of our restricted cash while maintaining the required credit support, allowing us to put more of our existing cash to work on development. On project funding, We retain the option for up to $200 million of financing under the Macquarie facility following lease execution, subject to the applicable conditions. We are also in discussions with other potential lenders on larger pre- and post-lease debt funding partnerships with the aim of getting credit instruments in place to fit the agreed development scope and timing of both Phase I and II. That covers our financial update. Operator, let's open the line for questions.

As a reminder, to ask a question, Please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. Our first question comes from Mike Grondahl with Northland. Your line is open.

Hey, guys. Thank you. It was highlighted that you expect that phase one build cost to be about 50% below traditional builds. and that the timing of capital outlays was kind of limited up front. With that, this color kind of alludes to a similar structure that Riot and Anthropic had with a powered land lease we saw a week or two ago. Can you just walk us through how we should think about that commentary for phase one? And if this is a structure we should expect to be replicated across phase two and potentially phase three?

Yeah.

Hi, Mike. Thanks for the question.

Yeah, I mean, the short answer is yes. It's a similar – seems to be a similar-looking structure, right? We saw that announcement, a modular build with – with a cost per megawatt that was half of the low end of a traditional build and we're in the same place. We're seeing a lot of the leading global technology companies like the one we're working with that are trying this modular approach because speed to compute is becoming the most important thing. With the capital markets where they are, they're getting more creative. and yeah, we feel that the returns that we're gonna get off of a project like this are great given what's happening in the credit markets. And as for phase one versus phase two, yeah, we're still trying to figure out what we'd like phase two to look like. We're working closely with the client, but I think as Evan alluded to earlier, Yeah, there's a good chance that phase two looks remarkably similar to phase one, but that hasn't been completely ironed out yet. We're far more focused, as Charlie said, on just finalizing phase one.

Got it. And then one more with phase one. Can you just clarify, are there any remaining approvals, permits, regulatory issues? And then... Can you give us a little bit of insight into any phase two approvals or how TCEQ air permitting is progressing?

Yeah, I'll let Evan answer that. Actually, I might chime in here real quick and then Evan, but one thing to kind of state, when our team sort of took over development a few months ago, Thank you, Charlie. No.

Great question. We're fully permitted. We have been for a while. I mean, we included the pictures. We've already started site work. For phase one, there's nothing in between us and delivering the project at this point. As far as the question about standard air permits, as I stated in the last call, we still anticipate that's going to be approved by end of year. It does appear like TCEQ is open for business again. They are accepting new permits. And so we did file that permit rather early. I wish I had filed it maybe a week earlier. We would be having this discussion. But we don't anticipate that's going to impact our project at all.

Okay. And then just lastly, it looks like you picked up an incremental 99 acres. Where are those 99 acres? What was the reason for the acquisition?

It was one of these little pieces of land that's contiguous to the property that we have. We've done this once before, picked up an extra 50-some acres. It essentially creates an ease of utility build-out. We worked with the city of Edessa on this, which was who we bought the original acreage from to begin with. And so basically, it's some connective tissue. It's usable. And so it just bolsters the position and makes all the execution of getting power to A to B even easier.

Okay. Thanks, guys.

Thank you. Our next question comes from Nick Giles with B Riley Securities. Your line is open.

Yeah, thanks, operator. Good morning, guys. Just was curious, you know, you mentioned you're in advanced negotiations on phase one at this stage. And so what would you say is really still being worked through? Is this more of a technical or design nature? Is it economics? Just curious on anything more you might be able to say on kind of where things stand. Thanks.

Yeah, I think we've got a full agreement on what the economics are going to look like. So we're really excited about that. And these modular builds are fairly simple from an SLA perspective. But yes, you're right. I mean, there are a few more technical things to work out. And we feel really good about where we are at the moment.

Good to hear. Okay. Thanks for that, Ted. I guess it sounds like you've already made a lot of progress in de-risking the supply chain. I just, I struggled to catch it all. Can you just walk us through kind of what remaining long lead time items still need to be secured for phase one and what kind of if there's any deposits you might need to make on that. And then how are you thinking about reserving capacity for phase two? Thank you.

Yeah, maybe I'll let either Evan or Jose touch on the long lead time items. But what I can say is the tenant has been, the prospective tenant has been extremely helpful as it relates to procurement of any long lead time items that we may not have on hand. Leveraging their supply chain has been something that we've really wanted to do. But Evan, Jose, I'll let one of you go.

Yes, Nick. And as we're working to finalize the design of what it looks like, which not to put the cart before the horse, we have to finish the lease in order to understand that technical specifications completely. We are talking in parallel to various equipment providers to understand the supply chain, to make reservations. We know the electrical equipment that is going to enable the delivery. We're working on that to secure that. And there are no blockers for us to be able to execute once our final design is complete.

Yeah, I think it's important just to note how, you know, Thank you for having me. you know 345 kV step-down transformers stuff like that that's traditionally taking from you know like transmission level voltages down into like usable voltages we are already down in that usable voltage range so it is a little bit easier and we're not exposed to the same kind of constraints that you would typically see in in that type of execution.

Great okay no thanks for that I appreciate all that color and then just Last one for me. You mentioned some of the new hires. It's impressive to see you guys add this amount of talent. I guess given that phase one is already in late stages, phase two a little further down the road, what is the team really working on here and now? You know, are you looking at new sites? What are some of the key criteria in the pipeline? Just any more color on kind of that ongoing work. Thank you.

Yeah, I mean, I'll say this. Our ability to take on this development ourselves is largely attributed to the team that we have. When we talked to the tenant, they looked at our team and said, wow, you've got world-class execution capability here, and you're solely focused on executing this one project. That actually became an attractant that led us into what we're doing right now, which is self-execution. So, I mean, look, every member of the team is busy doing different aspects, preparing for execution for this project. And so, really, building the team the way that we did was largely a function that allowed us to get to this self-execution model. You know, going forward, like, look, right now, I think it's best for our shareholders and everyone that, like, you know, we execute on our deal, we get to, you know, we get to RFS, and there's a whole lot that can be done afterwards. Like everyone else, I mean, look, we see a ton of projects. We also look at the markets and say, well, what makes sense right now? You know, like, there's a whole series of evolutions that we can do as a company, you know, once we, you know, Well, guys, I really appreciate the update and keep up the good work.

Thanks, Zach. Thank you. Our next question comes from Brian Baratian with Roth Capital Partners. Your line is open.

Thank you, operator. Hey, guys. Great news on all the progress in the quarter. I have a couple of quick questions. Last week or two weeks ago, Cipher was, Cipher was, you guys were mentioned on Cipher's earnings call. and what they mentioned was that they see monetization value in the Odessa site pointing to like speed of site access and scarce long lead equipment. Can you guys provide any color on like on the source of that claim and does that have anything to do with you guys and how you're structured now whether it's getting equipment delivered to the site or whether it's like doing the potential JV. My read is that that's not the case. I mean, you guys have your whole, you built a really strong team and you can do this yourselves. Can you provide any color on that?

Yeah, sure. I mean, I can't comment as to what they mean from a monetization standpoint there. I can only say what we said in the presentation, which is what we're looking at right now in our current phase one plan is is delivery in September timeframe for this first modular deployment on the 207 on our acreage. What that will require is spending a little bit of money to get that power over to our site versus where it's going to right now, which is theirs. And that's simple. And then the existing PPA between... them and Vistra has a clause in it where the substation they have right there and all the electrical equipment needs to be bought back by Vistra, or in this case, us. What we've agreed to in our PPA is to execute this PSA, which says we will pay for a new line run from their plant to our acreage, and we'll also take on that obligation to purchase their substation and all the electrical equipment, which like you said, that helps as far as long lead time items go, right? Just an existing substation, everything we need is right there. And the mechanism for the pricing there is just they've already got a baseball appraisal mechanism that's built in to their documentation, which I think is publicly filed. So that's I mean, that would be definitely the one thing that we would be purchasing from them ultimately or purchasing from Vistra. I'm not really sure exactly how that mechanic will work, but that is a part of the transfer of the power from them to us. Got it. Purchasing all that equipment, which is, you know, we find that to be really convenient.

Great. Thanks, Ted. My next question is, With the elections now done and Governor Hinojosa taking office in January, there was a New York Times report that happened a couple days ago where she mentioned we're looking to stop projects that have already begun construction but still need certain permits. What I found Interesting about that was originally my take was, you know, if you were under construction and a lot of capacity was being delivered and there were large sums of like capital being invested, especially to grow these areas, I thought it was interesting that it was the whole thing on permits. Can you give, and I may have missed this on the callback, I'm sorry, but can you give a little bit more color on, you know, I saw the TCEQ website is now up and running, they're accepting new permits. Can you give a little bit more color on why you guys feel like de-risked in achieving that air permit and some color on timing on that?

Yeah, and I'll chime in here real quick. Look, the objective here that they're trying to do is make sure that, and she's been very clear about this, make sure that that projects that are being permitted now or filing permits post-election or ones that are in the batch process follow a certain set of criteria that take care of the local communities and a whole bunch of social license to operate types of things. Given the fact that we already have the permits, I think we... were insulated from that. The objective isn't to pull back permits that are already issued. That's not something that they want to do. Furthermore, we look at how we intend to operate from a thesis-wise. There's actually a fair bit of alignment between what everyone's been asking for and what we've just been electively doing as a company. It's built into the ethos of what we do. So talking about, you know, like our risks on phase one, I mean, that's, you know, that's one thing we've kind of already covered that. On phase two, you know, as it relates to the air permits, you know, this is a standard air permit. It's not like we're going to stop like the, you know, country or Texas or anyone's going to stop allowing air permits to be issued. I think just as it relates to the specific application to this industry, they just want to see a few things checked off, making sure that, The social license to operate aspect of these developments are considered, which, again, has been built into our operating thesis before anyone ever asked for it. So to the extent that these permits are now kind of dislodged and the processes are moving, they're going to get issued when they get issued. But I don't think the intention of the new government whatsoever is to stop these developments. I think it's just to make sure that communities are taken care of. And we've spoken pretty aggressively about making sure that community engagement is a Poor tenement of what we do. And so, you know, as far as phase two, beyond, you know, even additional projects, I think the way that we operate our company is pretty well suited for, you know, kind of the new world that everyone found themselves in last Tuesday. So, yeah.

Great. Last one for me is, as we think of, I thought the language in the release and in the presentation about deliberately using the word tenant. I don't know if I'm reading too much into it because previous releases were using the word hyperscaler. Can you talk a little bit about, you know, I know that you're in conversations with this one tenant under a non-binding LOI for both phases. Phase one is moving ahead. Can you talk about demand for the site? Like, are you still speaking with other prospective parties. Are you seeing the same strong inbound demand from like a range of both hyperscaler and other tenants? Could you give color on that?

I can say that we are under that LOI that Charlie referenced. It's with a leading global technology company is what I would use as the description here. And they are under exclusivity. So our other conversations that we were having with a wide range of high quality potential tenants. Those have all ceased as we are trying to get to the finish line.

Perfect. But the main thing I'm getting at is there is still like, I guess that means that there is a lot of demand from a series of diverse counterparties for power like this that's

Absolutely. I mean, just pointing back to the reason why it was so hard for us to begin conversations with a lot of these entities is they were also trying to get a hold of that power once it became available back in July, right? So they were first our competitors and then they became our prospective tenants once we were able to secure the power. So, you know, tough to fight against some trillion dollar companies out there. But we were able to do that, executing that DFA framework that we've laid out where Vistra has, they're aligned with us. They've got that 5% ownership stake in anything they supply power to and a rofer on that entire phase three. And that to them, being a utility is a very valuable thing. So that was how we ended up with it. And then immediately once Once that question was settled of who's getting this power, we were able to have conversations with numerous tenants and, you know, over the last three months with what's happening with the uncertainty in the Batch Zero process, has our power become a more valuable commodity? Absolutely. There was a ton of interest and we chose to work with the party that we felt was going to give us the best chance for, you know, and a really high-quality lease in the current market.

Great. Thanks, Ted. I'll hand it back to the operator. Appreciate the update, guys.

Thank you. Our next question comes from Kevin Pimentel with Alliance Global Partners. Your line is open.

Morning. Thanks for taking my questions. Just one for me. Could you help us bridge the timing between power availability in Q3-27 and initial ready for service in Q4-27? What needs to happen kind of during that period before the first tenant can begin operations?

I think I'll let Evan speak to this. I know that the timing that we're talking about for trying to trying to start lighting up some of this modular compute is September. But I'll let Evan talk about what we actually have to do between now and then.

Thanks, Ted. I mean, generally the way I look at it, there's really two kind of barriers to landing capacity for customers. The first one is getting to the point where you can start construction. And the second is data center commissioning, which requires power. And so, you know, we're clear for construction right now. The question really is about power availability. If you go to Google Earth, you look at the location of where the substation is now and our site, you can see it's a relatively short run for distribution lines from that substation to our site. So basically what needs to happen is once the current PPA owner no longer has the PPA, in the interim is the build-out with Vistra of the distribution infrastructure from their site to our site, which is a pretty simple matter, and then bringing it to our switching station on our site. And due to the nature of how we're building this site out with the modular solution. It's not like a standard stick built in the sense that it's going to take a long time to do. And so really there's just some final site work preparing the site for delivery of those modules and then that rather short distribution run from their site to our site and then our on-site switching station, which will include a metal clamp switch gear, and then the delivery of the assets from the customer and then commissioning. And that's kind of it. It's not super complicated. Got it. Thank you.

Did that answer your question, Kevin? Yeah, yeah.

That was great. Thanks. Okay.

Thank you. This concludes the question and answer session. I would now like to turn it back to Charlie Nelson for closing remarks.

Yeah, and look, thanks everyone. And honestly, thanks for the questions. And just to reiterate, our focus now is squarely on completing this lease and putting the financing and delivery arrangements around it. Our non-binding LOI covers phases one and two at TCDC with the same tenants, which is, as Ted mentioned, a global leading global technology company, you know, just to summarize what we've been doing. I mean, we've contracted this very valuable phase one power. We've posted our additional credit support, so we're safe there. We've, you know, made really good strides on this leasing since we've, you know, taken the reins here. We've strengthened our balance sheet. You know, we continue to add the technical depth to be able to execute. And look, I believe it's important to address the evolution of our partnership strategy in these closing remarks as this asset's been developed. We've made the election, and again, this was at the request of the tenant to proceed in executing and delivering this project by ourselves. And there were several factors that played into this decision, but it's important to note that only until recently, when we controlled the PPA, that we were able to take control of this leasing process ourselves and not rely on other parties. And since then, the contracting phase has significantly accelerated to the place it is today. And look, we're only able to do that because of the strength of the team, the position of the power contract, Moving away from our potential JV was not a function of contention. We love those folks, but it was merely a decision that controlling our own destiny was deemed the lower risk path forward by both us and the prospective tenant. In today's market, when a tenant sees a team of our caliber who is not being pulled in numerous directions by numerous large-scale projects, they see something rare that points to lower execution risk, which is how we ended up here. And so, in summary, that was not a decision that was taken lightly, but we believe that it will provide significantly higher value to our shareholders long-term. We believe owning all of the current phase one and whatnot leaves us in a similar capex position. I think that the outcome of this whole process and the evolution that got us here is really going to produce the best value for all of our shareholders. With that, I'll just say we appreciate your time, we appreciate your support, and our team is always available if you'd like to follow up. So thank you very much.

This concludes today's conference call. Thank you for participating. You may now disconnect.