Deep Dive into Data Centers | Titan Impact Group

Good morning and welcome to the Deal Room Live, the daily real estate deal tank powered by Titan Impact Group, a global leader in AI driven real estate investing and funding. Where the real estate world meets speed, precision and profit. And bring us your deal so we can put it into our AI model that analyzes and structures real estate deals in minutes, generates all the docs you need to get the deal done, and gives you a verified, unbiased breakdown of due diligence reports. The investors get the advantage of getting fully vetted AI analyzed deals that cut their due diligence time down by 60%. So you're in the right place. Let's hope the Deal Room now and get into today's opportunity because as we start doing more deals, I want to take these recordings and put them into the area where investors can go and watch and see what they like. Kind of like watching an auction after it's over and still being able to buy what went through the auction line. Does that make sense?

No, but that's okay.

Have you ever seen an auction? Have you ever seen a livestock auction or a car?

Yeah, my grandfather was like the most famous auctioneer.

So I'm not speaking foreign language then. So imagine that with land, state land and real estate deals. We, we bring it out, we talk about it for five minutes, we run it through Deal Hunter and we figure out it's got potential, it's got legs. If you're interested in this, it's, you know, lot number 777. Give us a call after, you know, give us a call when you, when you think you want to get into it, move to the next deal, move to the next deal, move to the next deal. We do it for an hour, we're done. And then that entire video then goes and gets loaded to YouTube where we use that link to go out to our private members only section. And those are the investors that are looking for deals. And so they, they can go to a catalog of videos and say, okay, these are the industrial deals they ran and they can go through all of those, they can see the notes to it, they can watch the video. So, okay, that's, that's, that's the, the vision that I had for that.

So given that you're not on camera. Do I need to be on camera?

Yeah, you're the pretty one. Okay, so I've got a face for radio. I'm beautiful when it comes to the radio version of this. And you, on the other hand, are, you know, the highlight of the show. You've got the radiant hair, the Beautiful smile, pretty face. You're, you know, you're bringing. You're the. You're the one people show up for, not me. Come on. Yeah, so if this was a freak show, which the roles. I'll come on camera, you go off. Yeah, but this is. This is a professional show. We need a professional face. I. You know, that's why I talk behind the logo. You know, I'm wizard of Oz, if you will. Yeah. So short, fat, kind of ugly. Not pretty enough to be with Dorothy, but here we are. What are you reading?

Just sitting here waiting for you, playing with my little whisker.

You're recording this call. I'm going to pull that and record it so that you look authentic and real. And you can't fire me for it because we're under contract, so. All right. Yeah, just zinger right there. But we need sound effects for our show. Our podcast needs. Like, I was thinking about this. We need to get this down in front of Rafi and his. His wife. They have the South Mountain Studios in it. At some point, we need to get you freed up enough to go down there and talk to them, see it, and see if that's what we're going to do. So I think that would be helpful. Useful as well. All right, so we're going to do an intro video. Listen to this for a minute while I get a couple other things prepared, and then we'll jump into industrial and land today. Where's my YouTube? Do you not want to be on camera? Is that why you brought that up?

Well, yeah. I mean, I just feel like I'm sitting here, like, watching, and.

Well, I try to include you sometimes. I throw you questions a lot.

I feel useless sitting here.

I throw. I throw it. Well, that's. That's a shadow that you should probably pull into the light and be like, I'm not useless. I'm being adored. And. And people are here to just see how pretty I am and go from that standp point.

I'm more than just being pretty, being productive.

I said, well, again, this is, you know, I. I understand you want to be at the top of the pyramid, but we have to get the base layers down first.

I don't care about being top of the pyramid. I just want to be productive.

Well, we're. We are. You're just not seeing results. And that's. That's what happens sometimes when you start something new. You got to wait for the results to come in. I'll give you a result on my TikTok video. I do a TikTok video every morning and I put it on Facebook, Instagram, LinkedIn and all that stuff. Yeah, you just figured out you need to do that, be productive, Catherine. So when I go out and do that, I have yet to get a response from that. This one last night we got our first response that said, hey, when is the next one?

That's cool.

Out of 22 views, we got one comment that said, hey, when is the next one? So. All right, so let's, let's jump over to a favorite of mine. This is a guy by the name of Jocko Willink. And Jocko Willink is a retired veteran. Maybe, maybe not retired, but just, he's just an old vet. And the way they think and the way they, they go about stuff is completely different. Their mindset is absolutely astounding. Sometimes, especially when they've been through, you know, hell and back, they come back with a great amount of info. So let's take a listen to Jocko while I get ready.

It's one of my guys that work for me, one of my direct support. It's one of my guys that worked for me. He would, he would call me up or pull me aside with some major problem, some issue that was going on and he'd say, boss, we got this and that and the other thing and I look at him, I'd say, good. And finally one day he was telling me about some issue that he was having, some problem, and he said, I already know what you're gonna say. I said, well, what am I gonna say? He said, you're gonna say good. He said, that's what you always say when something is wrong and going bad. You always just look at me and say, good. And I said, well, yeah, when things are going bad, there's going to be some good that's going to come from it. Didn't get the new high speed gear we wanted.

Good.

Didn't get promoted. Good. More time to get better. Oh, mission got cancelled.

Good.

We need focus on other one. Didn't get funded. Didn't get the job you wanted. Injured. Sprained my ankle. Got tapped out.

Good.

Got beat.

Good.

You got unexpected problems. You have the opportunity to figure out a sewing machine. That's it. When things are going bad, don't get all bummed out, don't get startled, don't get frustrated. If you can say the word good, guess what it means. You're still alive. It means you're still breathing. And if you're still breathing, You still got some fight left in you. So get up, dust off, reload, recalibrate, re engage and go out on the attack.

There we go. The distractions are so's got a good way of looking at life and I like listening to that. Especially on day we're talking about land and real estate development overall because like the amount of pitfalls that you go through and have to go through to get to the other side of, of all these things is truly, is truly a, a mindset. Like you have to have the mindset to go out and get turned down and shut down every day. So we look at probably 100 deals a month and out of those hundred deals, I'm lucky if I can get contracts written on 10 of them and then out of those 10, you know, 9.9 of them are going to get turned down. So it really makes it hard to go out every day and try to swing that bat at, you know, and try to hit the fences with, with our, you know, with everything that we do because of the fact that it's, it's a struggle, it's a serious struggle to, to, you know, do real estate, especially land development. If it was easy, everyone would do it, right? We all know this. And so you have to have that mentality that when hits the fan good, something else was supposed to happen. We had an experience with this last night where we were lied to by one individual about his position in a, in a deal. And we clarified it with our, you know, with our, the, you know, contact the person that actually owns the property. We discovered that this other person is, is like stepping all over everything. So, you know, now we know for sure that we're dealing with one snake and one really good guy. And so what do you do? Do you abandon the good guy to avoid the snake or do you just put on a pair of boots, tuck your pants inside of it and step the shit out of the snake's head. So I'm usually going after the latter just because of the fact that that's the way I was built. I was born to, to step on the head of the snake and verify this with my mama. She has a story about me as a two or three year old standing on top of a copperhead stink. So, and if you don't know anything about, about a copperhead, they're the equivalent of the Midwestern rattlesnake. So from that, you know, I have this, I've had this kind of God given gift to, to stand up to stupidity and fight against, you know, injustice and, and just speak up about things, you know, and being at the right I called it being at the right place at the wrong time, and usually it was for the other person. I ended up just being there at the right time at the wrong place. So when those two paths collide, it can get kind of messy, but that's about it. I'm going to jump into talking about real estate today. Welcome to the Landshark Mastermind. This is a. Holy crap. This is a. I just had a error pop up on my screen. Can you guys still see me? There we are.

Yeah, I can see you.

All right, cool. Let me start that over so that we can maybe pull it as a video clip. This is the Land Shark Mastermind. Good morning. My name is Tommy D. I'm the co founder of the Land Shark Mastermind. My. My counterparts to the Land Shark Mastermind are Roman Rubio of Yuma and Dr. Ning Young Chan of Tempe. And we're out here in Arizona doing all kinds of really cool land deals across the country, not just here in Arizona. What we did was we came together and developed with our sponsor, Titan Impact Group, Ms. Katherine Bell, CEO. We developed an AI model that helps us do all of the things that real estate investors need done, from being a real estate agent all the way down to being the banker and giving us the, you know, the lowdown on whether or not we might be able to get a loan for something. So it doesn't actually give us the money. It does, though. It does, however, provide us with detailed information about how to get the money. And so from that, we're super excited. Jump over to my screen Sharing my screen here. There we go. And just a little bit about Titan Impact Group CEO Katherine Bell. She's available at KatherineBell AI. This is the. This is the assistant to Katherine Bell. You can get on there. You can ask her questions and get information.

Oh, we're seeing the Maricopa Superior Court page.

That's what you're seeing right now?

Yep.

You should be seeing my screen.

Well, whatever you're showing, it's the Maricopa County Superior Court $10.30 application fees.

Figure out how to get that over to a different screen.

You need to stop sharing for a sec.

How's that? Still there?

Yep. There you go. Now we're seeing your GPT.

GPT has been having major issues today. Look at that.

Back to Maricopa County Superior Court just.

Completely shut down again. I keep losing GPT today. Look at it. It's making me log in. Crazy. Technical difficulties as usual. I always say if you don't have technical difficulty, you don't have a good, you don't have a good program. All right, so here we go. Do you see the GPT5 thing here? Are we in that? Yeah, we're there, we're there. Testing, one, two. Cool. All right, so, so yeah, we've been, we've been doing all kinds of cool things. AI Wise and Katherine Bell AI is a very integral tool to that. When I go to KatherineBell AI, I'm able to speak directly to Catherine's virtual assistant. And I'm able to get information from a knowledge base that includes all of her five time international bestsellers, her website, her podcasts. There's over a gazillion words that were used to generate that thing. And I spent 85 sessions last month trying to find out all the words that IT know knows how to save. So not everybody's special like me though. I have unlimited access. But you know, you can definitely go there and get a lot of information before you need to go, go over to meetcatherinebell.com and over there you're going to discover how you can get some of these AI tools for yourself. So here we are in chat. GPT. The allergies are kicking up today. Arizona is in full bloom because of the rainstorms we've been having. And so it makes my throat super scratchy. And the best thing for that is a little can of Canadian dried ginger ale. The bubbles hit the throat and they just scratch all those tickles away. So that's my spot for Canada Dry. Over here in GPT. We're going to talk about some deals today. One of the things, Catherine, can you go into a little bit about data centers and your plans with those? I know you got a team that's working on that stuff. You want to tell me a little bit about it?

So to me, it's just looking at, you know, if we, if we just take some time. So one of my favorite books I like to read is the Road Less Stupid and it's by Keith Cunningham. And what he talks about is when we take thinking time and we actually start thinking through things that you actually, it's not about making more better decisions, it's about making less stupid decisions. And so when I look at the path of progress and what's actually happening in our society. So let's just look at AI and all the things that are happening. And with that, to me it's like AI is here and it's here to stay. It's not disappearing and people can be afraid of it. And all the things. But if we actually look at it and go, wait a sec, how can we use this to our advantage? Like when the Internet came out, you know, like people are like, why would I use the Internet? I just have, I can use the Yellow Pages now. I don't remember the last time I saw Yellow Pages and the Internet. Literally it's like on our phones, it's very powerful. And so AI is the same. And AI isn't meant to take over and replace human beings. It's meant to tap us as human beings, be way more productive and profitable and efficient and effective and take away the mundane tasks so we can stay focused on the high level thinking, which is where we need to be and even the deep level thinking. And so the deep level thinking is where this, you know, I'm looking at this. And so we're really clear that data centers, we're going to need more and more and more data centers to be able to handle all the data that's happening. Everything is going digital. Everything. You were talking about Trump and what he did with getting all the government documents and everything that all digitized and take amount of space. What's happening with Google and Microsoft and Meta and just all the things is where we're going. So the supply to be able to support that is data centers. And so then there's, that's one layer. Now the next layer, which is super, super cool is the layer of opportunity zones. And so what Trump did with the big beautiful Bill act that is in conjunction with the Fair Jobs act that Obama created, when you actually understand what both of those are and how they come together, a huge piece of that is inside of the opportunity zones, which for multiple reasons it's driving investors to be able to basically have impact investing in the sense of helping develop out all these areas that need to be developed. So they're making an impact with their investment, which I believe in do good and do well at the same time. And so by doing the do good and do well by having tax benefits, by investing in an opportunity zone that is now investing in these things that are helping develop all this. Now you have two layer, well, three layers to this, right? You have your tax benefits from the opportunity zone. If you don't know what those are, we're going to start doing classes on those so people can start understanding the benefits. These, because this is a really big deal. You have data centers, which is where our society is going and we're going to need more of that. And then you have the doing good, the impact, do good and do well at the same time. And then we look at where Tommy comes in, is taking all of this and now there's the path of progress. So where's the path in progress in every single one of these states and overlapping all those layers together to be able to find the perfect place for these data centers. And then, you know, setting, teeing it all up for these operators and moving all this forward. So that's why I'm super excited about data centers. From all the layers and all the aspects. You're muted and you're showing us your news feeds. You're still muted.

Sorry, I was trying to figure out how to get that off my screen. I was trying to swipe to the right so I could refresh my list over here for the, for this information because yeah, you're right. Like data centers are not only not going away, they're becoming a mainstay in our, in our society. And so one of the things that you and I had talked about is using AI to help us figure this out. We have a, an AI model called Deal Hunter by Landshark. And I'll jump over there and take a look at that real quick and show people that Deal Hunter by Landshark is found in the GPT marketplace. And you can see right here that you can find all kinds of tools to use while you're on GPT. You have to have the $20 or greater version of that, but you can use it to find all kinds of stuff from like scientific research to, you know, to astrology birth charts. I think Catherine even uses it for her health and wellness programs. So which we can, we can talk about more of that at, you know, on a, on a webinar. Catherine's planning to, to be hosting a webinar pretty soon about some of that stuff, I think. So we'll get into that soon. But Deal Hunter by Land Shark has been able to help us kind of corner the market on, on the things that we can do. The professional task that it's capable of is that literally can act in the role of a real estate investor, a realtor, agent, developer, broker, loan officer, private equity syndicators, hard money lenders, property managers, contractors, title and escrow officers, even zoning and permitting consultants. All these roles came by way of building out the AI model, instilling into it all of the knowledge and know how of the three of the three founders here and the, you know, the professional components of, of Katherine Bell come together to put together all of that knowledge into one easy to use AI tool. And we Call it Deal Hunter by Landshark. So spinning off from that, we're going to go down here to a conversation we were having with AI about data centers because they are becoming their latest. And so to bring everyone.

There's a weird sound and we can't hear you. It sounds like a thumping.

I was moving my finger up the screen. How's that?

Yeah, when you do that, we can't hear you. It just sounds like a really loud thumping.

Got it. I'll work on that. Appreciate it. So is that better?

Yeah.

Great. So here you can see that we have 10 components to a data center. This is a conversation I had with ChatGPT to kind of get a better understanding of what a data center is built out of. And so it gave me a good list of information. It's basically getting a good location that's close to electrical infrastructure, has the ability to have power backups, includes a very intense cooling system or H vac system that it has it server racks, a network or fiber infrastructure that's you know, very, very high up there like tier one or multiple tier one Internet service providers. It has to have structural structured cabling, meaning that like the way that they, they run the computers together all fit in, you know, fit together properly. It has to have physical security systems because again these things can fall under attack from, from the various sources, monitoring and building management. And then the building envelope has to be, you know, reinforced static, anti static floors, huge fire ratings and everything else so that we can make sure all the stuff stays safe. I told GPT to explain this to me like I was a, a fifth grader so I could, I could really get it easily broke down for my brain and basically I asked it, can we build data centers ourselves? And said absolutely. Build out cost is typically between 800 and 1500 dollars a square foot. And those are for tier one, tier two or I'm sorry for tier two, tier three. Tier one probably goes up to a higher amount but basically in order to just do the, do the data mining and crypto mining that, that we do, tier 2 tier 3 is pretty much good enough. So I asked it to provide who would use our service and the four main types of customers we would end up with are colocation clients, enterprise clients, cloud and SaaS providers, and then hyperscalers or web giants. And so that might sound like, you know, hoo ha, you have no idea what they're talking about. Let me just give you an example. An example or the Affordable Health Care Act. The Affordable Care act went into, went into effect Every single health care provider in the country had to switch from paper documentation over to electronic documentation. I don't know if you're old enough to remember, but when you went to the doctor back in the 90s, you would walk in and they literally had rooms full of racks full of patient information in those patient charts. All of that was eliminated as of 2012 when the Affordable Care act went into account. All that information had to be moved over to computers. Those computers sit in buildings called data centers. And so hospitals, doctors, office, anyone, anyone elect, anyone in medical is now using electronic medical records. And so instead of having those computers stored inside the doctor's office, where it needs all the things that I just described with the safety and the fire and the da da da da da, they do it in a place called a server hotel. Okay, so we'll get into that a little bit. The server hotel is where they keep all of the information. Okay, so those are, those are basically set up to be your micro data centers because they only need to house maybe a, you know, under, let's just say maybe under 20 computers. So, and so here helps us understand how it works. It says, a customer walks in and says, hi, I have an important computer. Can I keep it safe in your computer library? A data center says, yep, sure, we'll give it a safe, a safe shelf, lots of power, all the Internet it needs, and keep it cool 24 7. The customer pays a monthly fee called basically like rent for the rack. It pays for the electricity, Internet and then also pays for anything if something breaks. The customer can visit their server and connect to it from anywhere in the world to run their apps, run their store, run their files, play their games, etc. So it's no different than the computer sitting next to you right now. It's just that it's stored somewhere else and cared for at a higher capacity. So gamer companies use these for like if you play games on your computer. I know Catherine has this game that's kind of like Candy Crush for unicorns or something, that that game is hosted on a server in a data center and so that Catherine and 9 million other people can play it. Hospitals and doctor's offices, I've already kind of went into local businesses might do this. Say for example, you run a, you run a drop shipping company. We have a, we have a community that, that runs a drop shipping company. All of his stuff is done from servers. There might be a cloud company where like people like Dropbox or Zoom need an entire data center. Now that could be a 5 megawatt one where Zoom is ran from a probably 100 megawatt data center. Because of how many Zoom calls we had back when we were going through Covid, this became a very popular thing because Zoom was the highest used platform for people that still, you know, did, you know, meetings and, and ran offices. So schools and universities are all on, on websites now. Everything is, I know I've gotten two degrees by going through, you know, online school. That online school is ran through a data center. And then of course, AI. AI is huge right now. And so all of the information we're doing right now is coming from a data center. And then you have what I call the original. Oh, you know, the OGs, the Bitcoin and crypto miners. These are guys that used to put racks in their closets, steal power from everyone on this on the block run solar, wind, and, and, and probably steam in their backyard to start mining bitcoin from back in the day, bitcoin is, is ran through a data center. So it gave us information on how to attract customers like this if we wanted to build our own. And from a fourth grader standpoint, helped me understand a lot of things. Katherine, do you have any questions so far about all this stuff that I'm pulling forward?

No, I think again, you're just, I don't know, to me, affirming more of what I've been thinking about, about why these are so important and, you know, why I'm so heavily focused on making this happen with our team. The demand going to get more.

No, absolutely. And, and so when I, when I started exploring all the cool things that we could do with it, there was, there was the fact that we could scale these down to like, be mobile units or scale them up to be gigantic, you know, gigantic centers. As a matter of fact, Google AI just announced and Trump made it known to the world that they're building the Google AI building somewhere. And we can research where it's at, but it's literally the size of Manhattan. Manhattan's eight square miles. So yeah, it's huge. So I've got a little bit of history with computers, so I actually asked it to, you know, let me know what, what we could do about being, being able to throttle up and throttle down the power and the usage of these things to be more economically friendly and environmentally friendly. And it literally already knows what it's called. It's called dynamically orchestrated modular data centers. So not just going out building a data center, but actually going out building a dynamically orchestrated modular data center. Then becomes, you become kind of the niche kid on the block. I've been building custom homes for 30 years. Do I know how to build a Cracker Jack box? Absolutely. Can I, can I duplicate a 1200 square foot house about six times a week? Absolutely. Is it going to make me more money than a custom built house? Not at all. So I can build one big custom house and make the same amount as 30, you know, 30 little cracker jacks. So to me it's just smarter to go out and make 1, 1 house instead of 30 if, especially if I'm going to make more money.

Yes, yes, exactly.

So Tesla's building gigafactories. These are, these are literally set up to run full scale. You know, Internet stuff. I mean, this is above my head, but smart modular data center systems, basically. And I told it, it asked me if I wanted to build a logic map. It did. And so literally, I love how AI is way smarter than me. It literally set up a pod orchestration flow for the computers so that when, when customers log off, the computer goes into rest mode instead of staying active. And so it literally wrote the code for that. I didn't know I was a coder, but now I am. So. But that's got to go to somebody to get trusted and verified. I'm not that smart. But what it did do is it, it broke it down, made it, made it to where somebody who knows what this is can look at it and come up with, you know, information for it, what it should do. So from this space, what I did was I wanted to find out about more land. Excuse me. And I wanted to find out more about the business of blockchains and stuff like that. So what I did was I got into, we got into a discussion with a group who's out has requested that we, we send them information about the different properties that we know about. And so in the process of trying to vet them, I was like, hold on, let me, let me see what we can find out. I said that I wanted to look into who were buying buildings and turning them into data centers. You know, basically just blockchain cryptocurrency stuff, because those are the, those are the bread and butters. Those aren't, those are people that are needing data centers built on a daily basis, if you will. So I wanted to find out who they were. And it provided me with a top, a list of the top 20 companies across the United States. So I find this list to be very exciting because I can take this list and do so many things with it, we could probably give it to Katie and Megan and let them get into finding out who all these companies are and what we can do to, to build with them. So, and then it gave us, you know, how to pitch them. And so what they look for in, in a building is the speed to power and entitlements. Also having a lower tco. The build to suit program that I, I feel like we could get into with these guys is basically set up and optimizing what we're building now and we'll make more money off of that having faster, better, cheaper operations like pathways to fiber and you know, facility telemetry. Meaning like making sure that there's good, a good backup system and a good power system available for anything like you know, power outages or, or surges in power, surges of power. Probably bigger than all of that. But I'm building this, I'm building this knowledge base with it so that I can then start to understand how much actually knows about this process. Like, and so I said what is the average size of a data center? That called that question came up on a call the other day and I think somebody said something like three acres. And so small data centers require, require quite a bit more than just three acres. So the typical data center footprint building wise is about 100,000 square foot. So you can get floor area for 5,000 to 20,000 square foot. But that small data center is not going to produce, you know like billion dollar deals. You want to get into the billion dollar deals that starts at the hyperscale and goes out to, you know, HPC campuses and SOA campuses. So mega campuses would be like multi million dollar square foot facilities. And they do, they don't do just crypto mining, they're doing a lot bigger stuff.

So just for the people who don't know what are SBC like. So rather than using acronyms because there's a lot of people who, you know, again, not as smart as you, like what do those acronyms mean?

Right. So an HPC is a hyperscale campus. I said hyperscale before hpc so it carries over. So HPC is a hyperscale campus. And a hyperscale campus is where like I was showing the breakdown of how to have that flowchart and I showed you the coding that it came up with. Right, it comes up with that coding where you know, on a hyperscale we know like our Internet slows down and our, our chat GPT slows down around 2 or 3 o' clock in the afternoon every day. Why? Because we have a, we have a hyperscale issue where we're at capacity wherever we're at. And so to hyperscale that we need to have data centers that are able to expand out to. And we have like, you know, dormant, you know, dormant, dormant racks that will pick up the, you know, pick up the overage when we start getting an overage, basically. Okay, so that's the point of the hyperscale. So to break it down, I just.

Want to point out for everybody, you are not being the smartest person on your team is the best thing and having the smartest people on your team is the best thing. So if you're not understanding what he's saying, again, just get the smartest people on your team and yeah, they'll take.

Over or, or just come work, you know, come work with, with Titan Impact Group and they can, they can just take advantage of all this, invest with Titan Impact Group. They don't have to learn all this stuff. Right, right. So, but here in, in, in, in, in Arizona, I felt like it was critical to kind of get our team to understand what data centers look like. So you know, Cyrus One is, is a 2.6 million dollar development mesa. Okay. They have another campus that's 85 acres with $2 million, 2 million square foot of data center built on that. And that goes up to 90 megawatt. It's not even 100 megawatt. So. And then you've got a million square foot on 39 acres out in, I think that's the Phoenix campus for Iron Mountain. And then they also have a, a facility over in Scottsdale that they're trying to spread out with. You've got digital realty, which is a retail and wholesale co location. I think I explained what that was before. They have 807,000 square foot right now and that's, that's, they're considered a major player. So I love how, I love how my GPT is kind of funny. Here you can see Cyrus One. No, wait, we already did that one. That's a repeat instead a line data center. Like it thinks and talks like me so much it's ridiculous. But 5 acre, 55 acre facility, 80 acre facility. Now this is where it starts tying into what we do here with Landshark. Like data centers are great, but you can't just go out and just buy a piece of land and be like, oh, I want to build this data center here because all the things that it needs. And so going out and looking at 20 notable data centers across Arizona you can find out what it means, where it's at, and start building around there. You ever notice that CVS and Walgreens build across the street from each other? Or how Home Depot and Lowe's build across the street from each other? Or how, you know, Starbucks and BlackRock are across the street? Like, like competition builds next to competition. I call it the Coke Pepsi model. And so Coke machines are never by themselves. They always have a Pepsi machine sitting next to them. Because what you're doing is creating market. You're telling people you're thirsty, buy something. Now just choose which one you know. Right? And so that's kind of how you get into doing something like this. So when we were, when I was looking at it, I know that Catherine's favorite thing is to look at the numbers and let the numbers tell you what to do. And that means money. When Catherine says numbers, it means dollars. And so I looked at it and I said, what are the 5 megawatt? This is literally the smallest data center that I would consider building. I said, what does a 5 megawatt usually make per year? 9 million. That's passive income. Because literally, once it's built and plugged in and turned on, you don't have to go back to it to do anything. There's no toilets, There's. There's tenants, but there's no, you know, there's nobody that you have to make a bed for. You're literally.

We lost your sound.

Are you there?

Yeah. Now you came back.

You have a facilities manager that is running this and is able to manage the whole thing. And basically, you know, what you're making or taking home is based on you getting a. And basically this is where you make your money, is you're making money off of the power you pay for, and the Internet you pay for. You have Internet service providers, so you have to pay for the Internet service provider and you have to pay for the power. And what you're doing then is you're up charging. And, Catherine, you can relate to this. You run. You run mobile home parks. Do you or do you not make money off of the power bill?

Yes.

Okay. And so that's like an insider secret in most cases, but this is actually how it works here, is that you make money off of supplying the power. And so telling people that you make 7 cents a kilowatt hour, you might be only paying 0.07 cents for. For the power. So you're. You got 100x markup on that or a 10x markup on that. So because what you're able to do is upcharge on your power and upcharge on your Internet service provider to pay for the things that people aren't paying, you know, aren't typically paying directly into, such as, you know, the cooling, the staffing, the maintenance, the insurance, taxes and all the other overhead. Utility, utility overheads. So being able to upcharge for the power and you're, you're paying, you know, they're paying for a certain amount per month. They're not, it's not like, oh, you're paying for what you use. You're actually paying for an allotted amount that you get. I sent, sent you over, I sent Catherine a, an article last week that shows the breakdown of how they're, how they're getting into this and how you can invest into basically data centers. Not just maybe building a data center, but you could literally invest in building a rack and build, you know, have racks built and rent those out yourselves, you know, and we could just provide people with the space to have their own racks. So, but what I was able to come up with was I said build a multi sheet Proforma for a 5 megawatt, 10 megawatt, 20 megawatt and then give us the, the, you know, cost analysis, the power to cost breakdown using aps, the, the power company out here and using their breakdown of what, you know, what everything costs. So it went through and started looking at everything like, and it started giving me ideas like a hyperscale lease. It provides discounted rates to people that, that have like large, you know, large, a large lease with us or a lot of space with us. So it broke down the, the information about srp. SRP has a large power pricing program, so we need to do some due diligence into that, but basically just, you know, setting it up where we could do power pass throughs and bundled programs. And so again, some of this over my head total, but again, finding the smarter person in the room to do this. When I start talking to people, I can vet them based on the fact that if they don't know all these fancy acronyms and they sound as, as illiterate as I do, I'm pretty sure they're not going to be my partner. They're going to be trying to ride my coattails. So I'm going to have to learn how to short my coattails and make it easier for me to ride somebody else's. And this is how I do it. I use this to help me put it all together. So I've sent This over to you Catherine. This, this two page guidebook and I wanted you to share this with your team. But it creates like a metrics, making sure you have power, making sure you have network capability, then cooling and water work on entitlements and then do the community and incentives, you know, worry about those and by following it in that order you're able to eliminate much faster. I'll let you go through build to suit or spec building because this is kind of what I was thinking we could do is if we do build to suit, we have customers and people that come to us and they say we like the area you have, we want to, we want to have you build what you know, what you build. And then we go out and do that or if we go and build, build a spec, we're building it. And like when I used to build for 711 the convenience store 7 11, I knew exactly how they like their building, where they like their building and how they like to be set on, on the property. I, I built a generic shell building for that with the intention of 711 being there. But I also had four other non regional operators that would take it, take that space for a laundry mat. I had a submarine shop. It wasn't subway, it was a different sub shop that's I still have a non disclosure with but it wasn't subway. Just imagine from there and then there was another operator that was just like a generic operator that I could put in there. And so I would build a 711 but then have it ready for one of the other operators.

Right.

So because when 711 said yes, then I had to go into hypergear and put in gas stations because 711 at that time we're going, going after gas and becoming a true legitimate C store instead of just the local, you know, local convenience store. So the site had to have the capability of putting gas on it as well. So I would have that in the back of my head but I would not do that entitlement until after they signed my sign my contract to build for. Once they signed the contract to build for them, then I'd go and get the gas, you know, the gas pumps ready to go. But I already knew going in I could do it. If they didn't buy it, they didn't like the site. I had three other people that would use it and they would not need gas. So I would just, I would just build it out with a bigger parking lot because they needed the space, not the gas station, you know, not the gas pump. So it's Kind of like dual purpose. And that's what I've kind of built into this is if we're going to be building specs, we need to at least build to the specs of, of the big dogs. Like, you know, getting. There's a company out there called, what is it, CTS or BTS or something like that. They've got a big facility right there off I10. We drive past it quite often. We were able to see this gigantic data center there. So. Right.

I love that because you're, you're again, starting with the end in mind.

Yep. Always planning with the exit and, and focus. Little trick on that is when I was a kid, my sister and I would go to restaurants and they used to have the placemats with all the puzzles on it. And if you, if you had siblings, you were. Oh, you had to have some sort of natural competition with them. My sister and I would, would challenge each other to see who could make it through the maze first. And so my sister would always start at the start and I would always start at the finish and I'd always beat her out of the maze because you run into less. You run into less obstacles and roadblocks when you're starting at the end and working your way out. So I know that the rules were, you know, start at the start and go to the finish. But when you understand how to play the game, like the rules kind of can be superseded because the, the name of that game is just to win and get yourself out of the, you know, make the line, go all the way through the, the puzzle. You know, so my mom would giggle and my dad would tell me I was a cheater. So. And, and then he would make my. He would give my sister the prize instead of me. But that's okay. We know, we know where all that panned out. So anyway, so the. Here we are back in the AI world and I asked, asked it to build out a proforma. Let's take a look at it here. Catherine likes these, these tables and spreadsheets and stuff like that. So basically what we were able to do is build out a pro forma of what these, what these things would make EBITDA and what their values would be. And you can see that one down there, that's a 20 megawatt facility. Basically, monthly revenue is almost $4 million. So what that turns out to be is like, I think it's. Yeah, says right there like a $26 million facility. So. And that's at 20 megawatts. If you can imagine going to 100 megawatt or, or even. A thousand megawatt or a million megawatt, something along those lines. Bigger, bigger numbers like that. You can very easily assume, very easily assume that it's going to be a million dollars per, per megawatt. So when you get to the, to the 100 megawatt facilities, those 100 megawatt facilities are going to have a, worth of a billion dollars dollars. So. Because when Katie or Megan was saying that the other day about it being a million dollars or a billion dollars or whatever, I was like where, how? Because that's where my brain goes. So I sent you this spreadsheet though, Catherine, and it just needs to be prettied up the way that you, you do it. And then I got it to write me an email for your team. And that's basically it right there. We haven't really talked about the land thing yet, but we had, like I said, we had a, we had a company give us their, their breakdown of how they like, like their buildings to look or whatever. And we followed their breakdown and came up with some good ideas for stuff. Let's see here. So they told us, they gave us an infrastructure guideline. I was able to put that in here and it showed that they're, they're, they didn't quite have enough information for us to pull a good listing from. So I had to, I had to kind of fill it in. But I gave it their criteria worksheet right there.

Yeah.

And it's, and basically it said that, that they needed to clarify like what minimum site size was, what power utility requirements. Like they just very generalized with it. Then I said look for property that would be suitable on LoopNet, all of our sites. And then what it wanted for me was minimum parcels, power fiber needs. And so I had to tell it use ideal conditions and no price constraints because I'm just trying to gain information at this point. So. Right. It tells me the ideal site would be 40 plus acres, which we have a ton of those. The fiber connectivity would need to be within a certain amount of, you know, a certain distance. And so the utilities minimums and, and in residential development you need water, electric access and sewer. But to do data centers you need high voltage power substations and water access. Like those are the, those are the minimums. You don't have that, don't look at it. You need the ability to have low risk to natural disasters. No flooding, no, no earthquakes, no massive storms that could knock power out, could, you know, tornadoes, stuff like that. And Then you're going to want it in an area where you can keep it cool or have a moderate climate to reduce cooling costs. You're going to want to have free air cooling. But the other result of that is having cold water cooling. So if you have water on site that can be used, that's even better. Regulatory and community environment support, access to skilled labor to get it built, and then strategic logistics as far as good road access, proximity to airports for hardware and community infrastructure. And then environmentally it needs to be sustainable. So having renewable power, what they call behind the meter power, your municipalities need to allow for that. Or having proximity to hydroelectric resource, which that one location in Illinois had that. So I told IT to pull me some listings from, from the Virginia area for our client that we're talking to on that, the Atlanta area because of their hub connectivity. The Phoenix area, Buckeye actually pulled Buckeye up because that seems to be a big, big spot right now. And then Dallas Fort Worth and other secondary markets, I said just do Texas and Arizona. And what it did was it brought me five sites from Texas and five sites from Arizona. And so when I went and looked at these sites in Arizona, all of them made sense. Everything from the massive 640 acre property out in Wellington all the way down to the 10 acre residential lot that could be converted out in surprise. So finding property is not going to be hard for this thing because literally there's websites out there and, and I've taught Deal Hunter to do this. We only got five minutes left, but I've taught Deal Hunter to go out and utilize like the ADOT website. It'll scrape the ADOT website for information regarding where there's going to be road closure so they can run power lines or, or, or run data center cable fiber and stuff like that under or over the road. And so when you teach your AI to think like a developer, it goes and looks at those websites and says I need to know this data. Comes back and says, hey, they're, they're putting in pipe, you know, pipeline right here. And like it would have taken somebody days to find that, but it does, it does it in minutes. So I said review the spec sheet again and give me a breakdown of the, the top five needs that these people have. So Casa Carrera Data Centers wants acreage and scalability, power and infrastructure, fiber connectivity and the ability to have zoning permitting and site access and logistics. Those are the five things they were most concerned with. So if we do site identification for them, it's going to use these five top criteria. So phase one targeting 100 megawatt, expandable to 750 megawatts. Almost. It's almost a hundred thousand megawatts or a thousand megawatts. So it says to be able to do this, you want to have a substation, substation nearby or have a space to build one for on site. So you need 5 to 20 acres for that. So we're going to be looking for land that's over 40 acres guaranteed if we work with these guys. So here it says the summary. Our requirements are 15 to 500 needs power infrastructure, needs fiber redundancy meaning two different carriers, you got to have gotta have two different Internet service providers. And back in the day Internet service provider. I'm gonna blow your mind with this. My first ISP was Prodigy, you ever heard of that one?

Oh that. I haven't heard that name since forever.

Yeah, that was my first ISP. AOL was an ISP. Trying to think of other ISPs. Yoohoo, Yahoo was an ISP, right so but that switched over now to data link or Starlink. You've got, they're an ISP, you've got. CenturyLink is the biggest one out there. So I asked it to, to give me information about those who are made. Who are our major fiber carriers in Texas and Arizona? AT&T ZEO, Crown Castle, Comcast, Verizon, Fiberlight, like here's all the big players to talk to. Google Fiber, right? Tells you where they're at too. So in Arizona we've got Phoenix, we've got Mesa, we got Chandler, we've got Cox. Businesses just trying to get everywhere they possibly can. But we got, we got access to carriers. We know where they're at. We also know where they want to expand. Hey, I went out and grabbed all this information. Tell me, tell me any other tool out there right now that, that, that isn't Deal Hunter by Landshark that's doing this right here. It got me carriers that want to be in the area, they want to expand aws. AWS is Amazon's version of fiber. Like Amazon has figured out they need to be the player in every game. Right? You were speaking earlier about models. Do you know Jeff Bezos model of decision making? You ever heard that one?

No.

Door one, door two. Door one means that you go through the door, you can't turn around, come back out. That's a decision you're making is going through door one. Once you go through, make that decision, you can't turn around and back out. That's a door one Decision door two decision is that it's kind of like a revolving door. Like you can go in, it's, you know, that spinning door that I love to play in when I was a kid. You go in, you can go into the store and be like, okay, or go inside, wherever you're at, and then get back in the revolving door and go right back out. That's a door to decision. How many decisions do you think are door one in a business?

No idea.

Less than 1%. But do you know, do you know how many business owners use door one mentality when trying to make a decision on something?

Right.

90%. Right. So the reason why Jeff Bezos was able to take off and go the direction he went was. And it was buried in one of his investor meetings that he had. And in the notes of this one particular investor meeting, he explained the door one, door two mentality and that he implored all of his employees and all of his critical decision makers to apply Door 2 principles to decision making so that we could just get through decision making a lot faster.

I like that.

It was insane. And instead of looking at everything like it was an undoable situation, he made everything a doable situation by being enabled to undo it.

Right.

So pretty powerful abilities guy. So that's why he's a billionaire.

Right.

But in the short term, he's in here because like he's figured it out. He knows that he has to have his own power. So strategically stepping back from this and working with somebody like Casa Carrera or any other company out there that's looking to be, you know, a data center builder, like we can build to suit for Casa Carrera. We can, we can provide them with a strategic partnership to get through what they're looking to do. I had one more, but we're out of time. But the, the biggest thing is going to be making sure that if we're the builders, these guys are the, are the operators, if they're the intermediaries, well, then they need to step aside until they have contracts to pay for it. So where we're at is we could actually start building these things ourselves if we had a fund set up to build them. And you had mentioned the opportunity Zone fund. This is an excellent way to utilize opportunity Zones. The only issue is that we would need to provide a level of economic development to it. And so this is why building these things on 200, 300 acre campuses is because we're going to be putting other jobs there. Like it's not just going to be a big ass Data center building. It's going to be a big ass data center building with a battery storage facility out there, a power generating facility out there, a water generating or water district out there. We're going to have small convenience stores are like 7 11. Because that site's going to be huge. And when we split all that up and make entitlements for it, the majority of it is going to be paid for by the data center. But the, the, the feasibility of it is supported by all of the things that land on that property with it. So and with that we've reached the end of our meeting in the top of the hour for this podcast, which is super exciting for me. So we're going to turn this one into a usable product for our, our YouTube watchers. And I just. Catherine, you know, if you got like 60 seconds to tell people something, what would it be?

Do the numbers, numbers tell you what to do and again, have smarter people on your team than you are.

How valuable was the information you got today on data Center?

My brain's going in a thousand different directions.

Well, I'm gonna go see if I can find a, a really big rope, create a lasso and let's see if we can, you know, wrap all those up for a, for a thought session later on. So, but thank you for being our sponsor and I appreciate all the time like to wrap, I want to wrap it up with a prayer and Heavenly Father, we thank you for the ability to come together and do your work. We want to be able to provide people with the best community, the best, the best properties, the best, the best people around them. And, and so with that we ask that you continue to put, put yourselves in our, our hearts and our minds so that we are able to do your will. Your name we pray. Amen.

Amen.

Catherine, it's a pleasure as always. And we'll be back tomorrow. Tomorrow is Thursday Land Thursday, Industrial Thursday. So hopefully we can get industrial people to come to the, you know, to the podcast, tell us about what they got going on. Maybe you can invite, bring along Adam, your partner there in the industrial space. So let us know and we'll see you tomorrow everyone. Have a great day.

You too.