WEBVTT

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<v Sarah>For <00:00:00.144>four <00:00:00.480>days, <00:00:00.912>this <00:00:01.100>was <00:00:01.337>county <00:00:01.749>zoning <00:00:02.229>fights.

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<v Sarah>Today, <00:00:03.640>FERC <00:00:03.973>is <00:00:04.126>naming <00:00:04.464>data <00:00:04.790>centers <00:00:05.333>in <00:00:05.480>a <00:00:05.580>reliability <00:00:06.304>directive.

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<v Sarah>That <00:00:07.585>escalation <00:00:08.284>deserves <00:00:08.680>a <00:00:08.800>timeline.

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<v Matt>This <00:00:10.758>is <00:00:11.011>The <00:00:11.211>Data <00:00:11.577>Center <00:00:11.931>Daily — <00:00:12.671>the <00:00:12.791>day <00:00:13.033>somebody <00:00:13.591>finally <00:00:14.091>got <00:00:14.424>named.

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<v Matt>FERC <00:00:15.741>pointed <00:00:16.118>at <00:00:16.251>NERC, <00:00:16.873>Virginia <00:00:17.421>pointed <00:00:17.798>at <00:00:17.891>a <00:00:18.011>bill, <00:00:18.691>and <00:00:18.904>Texas <00:00:19.431>has <00:00:19.651>$2.2 <00:00:20.511>billion <00:00:21.238>in <00:00:21.344>abatements <00:00:22.011>up <00:00:22.231>for <00:00:22.451>a <00:00:22.555>look.

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<v Sarah>Start <00:00:23.803>with <00:00:23.951>the <00:00:24.051>federal <00:00:24.411>move — <00:00:25.091>because <00:00:25.391>for <00:00:25.531>once, <00:00:25.958>it <00:00:26.071>has <00:00:26.391>a <00:00:26.559>mechanism <00:00:26.864>worth <00:00:27.177>stress-testing.

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<v Matt>One <00:00:28.891>tap <00:00:29.184>on <00:00:29.371>follow, <00:00:29.971>and <00:00:30.118>we'll <00:00:30.304>be <00:00:30.459>back <00:00:30.678>in <00:00:30.763>your <00:00:30.971>ears <00:00:31.348>before <00:00:31.711>you <00:00:31.819>know <00:00:32.091>it.

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<v Sarah>Bruce <00:00:33.481>Grabow, <00:00:34.044>Shane <00:00:34.457>P.

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<v Sarah>Early, <00:00:35.097>writing <00:00:35.710>in <00:00:35.886>Energy <00:00:36.357>Law <00:00:36.633>Blog:

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<v Quote>On <00:00:37.716>July <00:00:38.052>16 <00:00:38.612>2026

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<v Quote>the <00:00:39.942>Federal <00:00:40.349>Energy <00:00:40.750>Regulatory <00:00:41.390>Commission <00:00:42.052>(“FERC”) <00:00:42.909>issued <00:00:43.305>an <00:00:43.465>order <00:00:43.764>that <00:00:43.942>directs <00:00:44.312>the <00:00:44.425>North <00:00:44.745>American <00:00:45.225>Electric <00:00:45.692>Reliability <00:00:46.425>Corporation <00:00:47.199>(“NERC”)

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<v Quote>to <00:00:48.340>take <00:00:48.589>action <00:00:48.980>regarding <00:00:49.452>“computational <00:00:50.372>loads,” <00:00:51.199>which <00:00:51.352>are <00:00:51.465>loads <00:00:51.780>comprised <00:00:52.265>of <00:00:52.425>power <00:00:52.749>demand <00:00:53.124>from <00:00:53.305>information <00:00:53.943>technology <00:00:54.500>equipment

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<v Quote>such <00:00:55.599>as <00:00:55.722>servers <00:00:56.512>storage

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<v Quote>and <00:00:57.143>networking <00:00:57.705>hardware

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<v Quote>e.g. <00:00:58.996>data <00:00:59.312>centers. <00:01:00.052>The <00:01:00.852>FERC <00:01:01.140>explained <00:01:01.620>that

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<v Quote>in <00:01:02.172>light <00:01:02.399>of <00:01:02.492>the <00:01:02.675>unprecedented <00:01:03.556>load <00:01:03.858>growth <00:01:04.178>driven <00:01:04.505>by <00:01:04.676>data <00:01:04.982>centers

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<v Quote>it <00:01:05.945>is <00:01:06.103>imperative <00:01:06.644>that <00:01:06.852>NERC <00:01:07.222>address <00:01:07.592>the <00:01:07.719>reliability <00:01:08.505>concerns <00:01:08.990>associated <00:01:09.604>with <00:01:09.789>computational <00:01:10.599>loads.

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<v Sarah>On <00:01:11.730>July <00:01:12.066>16 <00:01:13.106>FERC <00:01:13.392>issued <00:01:13.719>an <00:01:13.893>order <00:01:14.282>directing <00:01:14.866>NERC <00:01:15.239>to <00:01:15.410>file <00:01:15.733>reliability <00:01:16.530>standards <00:01:17.206>for <00:01:17.538>what <00:01:17.693>it's <00:01:17.866>calling <00:01:18.266>'computational <00:01:19.266>loads' — <00:01:20.286>servers

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<v Sarah>storage <00:01:21.724>networking. <00:01:22.759>It's <00:01:23.066>the <00:01:23.226>first <00:01:23.474>time <00:01:23.686>the <00:01:23.806>federal <00:01:24.286>reliability <00:01:25.002>framework <00:01:25.546>has <00:01:25.719>named <00:01:26.050>data <00:01:26.376>centers <00:01:26.919>as <00:01:27.066>their <00:01:27.326>own <00:01:27.586>class <00:01:28.013>of <00:01:28.130>grid <00:01:28.455>demand.

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<v Matt>So <00:01:29.906>the <00:01:30.205>accountability <00:01:31.106>gap <00:01:31.386>I've <00:01:31.538>been <00:01:31.723>hammering <00:01:32.326>all <00:01:32.690>week — <00:01:33.626>FERC <00:01:33.970>just <00:01:34.295>handed <00:01:34.759>it <00:01:34.946>to <00:01:35.159>an <00:01:35.335>actual <00:01:35.806>institution: <00:01:37.026>NERC.

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<v Matt>That's <00:01:38.578>your <00:01:38.752>answer <00:01:39.133>to <00:01:39.546>'who's <00:01:40.039>on <00:01:40.166>the <00:01:40.274>hook.'

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<v Sarah>Careful. <00:01:41.853>It <00:01:42.279>tells <00:01:42.626>NERC <00:01:42.973>to <00:01:43.090>file <00:01:43.418>standards; <00:01:44.333>it <00:01:44.426>doesn't <00:01:44.746>write <00:01:44.994>them.

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<v Sarah>And <00:01:45.874>this <00:01:46.114>grew <00:01:46.350>straight <00:01:46.746>out <00:01:46.893>of <00:01:47.026>NERC's <00:01:47.486>own <00:01:47.737>comments <00:01:48.333>on <00:01:48.406>the <00:01:48.533>large-load <00:01:49.293>ANOPR

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<v Sarah>Docket <00:01:50.893>RM26-4 — <00:01:52.973>where <00:01:53.186>NERC <00:01:53.575>itself <00:01:54.018>said <00:01:54.215>demand <00:01:54.672>growth <00:01:54.999>is <00:01:55.146>the <00:01:55.336>highest <00:01:55.879>in <00:01:56.046>two <00:01:56.306>decades.

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<v Matt>Right, <00:01:57.986>and <00:01:58.146>here's <00:01:58.519>my <00:01:58.746>worry — <00:01:59.626>NERC <00:01:59.976>filings <00:02:00.546>move <00:02:00.914>like <00:02:01.166>continental <00:02:01.893>drift.

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<v Matt>Is <00:02:02.906>there <00:02:03.166>any <00:02:03.417>timeline <00:02:04.018>with <00:02:04.213>teeth?

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<v Matt>Or <00:02:05.394>does <00:02:05.606>the <00:02:05.730>ratepayer <00:02:06.210>bill <00:02:06.530>keep <00:02:06.836>running <00:02:07.226>while <00:02:07.474>everybody <00:02:07.975>drafts <00:02:08.439>language <00:02:08.886>for <00:02:08.990>eighteen <00:02:09.415>months?

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<v Sarah>The <00:02:10.679>order <00:02:11.010>says <00:02:11.506>'urgent <00:02:12.226>need <00:02:12.586>for <00:02:12.797>action.'

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<v Sarah>Whether <00:02:14.306>'urgent' <00:02:14.848>survives <00:02:15.386>NERC's <00:02:15.808>standard-setting <00:02:16.616>process <00:02:17.159>is <00:02:17.298>what <00:02:17.479>to <00:02:17.666>watch.

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<v Sarah>These <00:02:18.806>are <00:02:18.926>reliability <00:02:19.653>rules, <00:02:20.253>remember — <00:02:20.946>not <00:02:21.253>queue <00:02:21.677>reform.

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<v Sarah>Interconnection <00:02:23.586>backlog <00:02:24.199>is <00:02:24.346>a <00:02:24.430>separate <00:02:24.866>fight.

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<v Matt>Which <00:02:25.959>is <00:02:26.136>exactly <00:02:26.706>my <00:02:26.919>question — <00:02:27.959>is <00:02:28.114>this <00:02:28.346>pointed <00:02:28.679>at <00:02:28.806>the <00:02:28.912>twelve <00:02:29.282>gigs <00:02:29.693>of <00:02:29.813>large <00:02:30.226>load <00:02:30.599>stuck <00:02:30.893>in <00:02:31.106>PJM's <00:02:31.653>queue

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<v Matt>or <00:02:32.866>is <00:02:33.053>it <00:02:33.154>just <00:02:33.386>a <00:02:33.490>paperwork <00:02:34.115>registration <00:02:34.777>exercise <00:02:35.442>that <00:02:35.879>never <00:02:36.206>touches <00:02:36.666>the <00:02:36.893>LOA-to-megawatt <00:02:38.006>gap?

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<v Sarah>The <00:02:39.152>action <00:02:39.490>plan <00:02:39.799>calls <00:02:40.106>for <00:02:40.275>registration <00:02:40.937>analysis <00:02:41.533>of <00:02:41.639>large <00:02:41.999>loads.

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<v Sarah>That's <00:02:43.166>a <00:02:43.266>step. <00:02:43.826>How <00:02:44.366>big <00:02:44.586>a <00:02:44.690>step <00:02:44.996>depends <00:02:45.408>entirely <00:02:45.986>on <00:02:46.194>what <00:02:46.466>NERC <00:02:46.813>files <00:02:47.486>and <00:02:47.954>when <00:02:48.226>FERC <00:02:48.606>accepts <00:02:49.106>it.

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<v Matt>Four <00:02:50.162>days.

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<v Matt>Monday <00:02:51.639>we're <00:02:51.853>on <00:02:51.963>county <00:02:52.363>zoning <00:02:52.752>fights <00:02:53.066>and <00:02:53.226>moratoriums, <00:02:54.346>and <00:02:54.519>by <00:02:54.697>Thursday <00:02:55.346>the <00:02:55.666>feds <00:02:56.006>are <00:02:56.123>naming <00:02:56.530>data <00:02:56.846>centers <00:02:57.319>in <00:02:57.646>a <00:02:57.903>reliability <00:02:58.370>directive.

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<v Matt>Every <00:03:00.215>hyperscaler <00:03:00.986>sitting <00:03:01.319>on <00:03:01.466>a <00:03:01.540>letter <00:03:01.773>of <00:03:01.895>intent <00:03:02.466>is <00:03:02.846>now <00:03:03.086>staring <00:03:03.559>at <00:03:03.706>a <00:03:03.797>compliance <00:03:04.366>ceiling <00:03:04.882>they <00:03:05.314>didn't <00:03:05.653>price <00:03:06.013>at <00:03:06.115>announcement.

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<v Sarah>Here's <00:03:07.853>what <00:03:08.061>Adam <00:03:08.461>Aton <00:03:08.834>at <00:03:09.061>E&amp;E <00:03:09.501>News <00:03:09.848>is <00:03:09.965>reporting.

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<v Matt>Virginia. <00:03:11.501>The <00:03:12.061>data <00:03:12.427>center <00:03:12.771>capital <00:03:13.314>of <00:03:13.488>Earth.

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<v Matt>And <00:03:14.621>now <00:03:14.901>the <00:03:15.088>state <00:03:15.554>is <00:03:15.874>actually <00:03:16.381>asking <00:03:16.931>whether <00:03:17.441>the <00:03:17.581>guys <00:03:17.941>pulling <00:03:18.241>the <00:03:18.381>megawatts <00:03:19.101>should <00:03:19.661>pay <00:03:19.941>for <00:03:20.081>the <00:03:20.248>wires.

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<v Matt>Revolutionary <00:03:22.631>concept.

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<v Sarah>The <00:03:23.478>mechanism <00:03:24.032>matters <00:03:24.414>more <00:03:24.574>than <00:03:24.722>the <00:03:24.846>mood, <00:03:25.294>Matt.

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<v Sarah>It's <00:03:26.102>the <00:03:26.254>same <00:03:26.433>accounting <00:03:26.962>the <00:03:27.209>PJM <00:03:27.788>market <00:03:28.122>monitor <00:03:28.602>was <00:03:28.830>gesturing <00:03:29.342>at <00:03:29.582>when <00:03:29.955>he <00:03:30.102>put <00:03:30.302>$6.3 <00:03:31.142>billion <00:03:32.035>of <00:03:32.162>the <00:03:32.262>$16.4 <00:03:33.352>billion <00:03:34.044>capacity <00:03:34.606>bill <00:03:35.049>on <00:03:35.470>data <00:03:35.708>center

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<v Sarah>load. <00:03:36.722>Now <00:03:37.302>a <00:03:37.395>state <00:03:37.702>wants <00:03:37.929>to <00:03:38.039>formalize <00:03:38.622>it.

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<v Matt>Right, <00:03:40.042>but <00:03:40.382>'mulls' <00:03:41.162>matters <00:03:41.646>here.

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<v Matt>Is <00:03:42.649>there <00:03:42.822>a <00:03:42.942>docket <00:03:43.319>number, <00:03:44.115>or <00:03:44.249>is <00:03:44.350>this <00:03:44.582>a <00:03:44.672>working <00:03:45.089>group <00:03:45.454>that <00:03:45.662>dies <00:03:46.035>in <00:03:46.198>committee <00:03:46.782>while <00:03:47.202>the <00:03:47.342>ratepayer <00:03:47.966>bill <00:03:48.275>keeps <00:03:48.602>running?

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<v Matt>Those <00:03:50.042>are <00:03:50.318>very <00:03:50.742>different <00:03:51.172>animals.

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<v Sarah>Right — <00:03:53.122>the <00:03:53.302>E&amp;E <00:03:53.649>piece <00:03:54.046>says <00:03:54.462>'mulling,' <00:03:55.382>not <00:03:55.542>a <00:03:55.649>filed <00:03:56.051>tariff.

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<v Sarah>But <00:03:57.166>pair <00:03:57.449>it <00:03:57.534>with <00:03:57.702>the <00:03:57.902>FERC-NERC <00:03:58.595>order <00:03:58.915>we <00:03:59.086>just <00:03:59.422>hit: <00:04:00.182>federal <00:04:00.529>reliability <00:04:01.326>standards <00:04:01.959>naming <00:04:02.350>this <00:04:02.590>load <00:04:02.862>class

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<v Sarah>and <00:04:03.782>a <00:04:03.875>state <00:04:04.182>looking <00:04:04.489>at <00:04:04.582>putting <00:04:04.882>the <00:04:05.006>grid <00:04:05.358>cost <00:04:05.795>on <00:04:05.950>that <00:04:06.206>same <00:04:06.542>load.

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<v Sarah>Four <00:04:07.790>days <00:04:08.042>ago <00:04:08.254>this <00:04:08.430>beat <00:04:08.682>was <00:04:08.908>county <00:04:09.239>zoning <00:04:09.662>fights.

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<v Matt>That's <00:04:10.562>the <00:04:10.670>part <00:04:10.894>that <00:04:11.086>gets <00:04:11.422>me.

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<v Matt>Monday <00:04:12.835>it's <00:04:13.222>a <00:04:13.324>Nebraska <00:04:13.879>county <00:04:14.262>drawing <00:04:14.582>a <00:04:14.702>line <00:04:15.078>administratively.

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<v Matt>Thursday <00:04:17.395>it's <00:04:17.822>FERC <00:04:18.222>and <00:04:18.502>a <00:04:18.609>state <00:04:19.022>cost-allocation <00:04:20.049>fight.

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<v Matt>The <00:04:21.160>escalation <00:04:21.822>curve <00:04:22.329>is <00:04:22.622>real.

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<v Sarah>And <00:04:23.822>it <00:04:23.982>changes <00:04:24.422>the <00:04:24.590>math <00:04:24.822>for <00:04:24.999>anyone <00:04:25.362>who <00:04:25.479>priced <00:04:25.849>their <00:04:26.142>PPA <00:04:26.675>at <00:04:26.837>announcement.

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<v Sarah>A <00:04:28.199>direct <00:04:28.622>cost <00:04:28.995>shift <00:04:29.315>is <00:04:29.462>a <00:04:29.566>line <00:04:29.870>item <00:04:30.094>they <00:04:30.270>didn't <00:04:30.742>model.

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<v Sarah>Rod <00:04:34.453>Walton <00:04:34.849>at <00:04:35.013>Energy <00:04:35.404>Tech <00:04:35.649>is <00:04:35.800>tracking <00:04:36.220>this.

60
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<v Sarah>PJM's <00:04:37.896>forward <00:04:38.387>capacity <00:04:39.006>auction <00:04:39.409>gives <00:04:39.696>you <00:04:39.796>the <00:04:39.985>supply-side <00:04:40.860>read <00:04:41.169>on <00:04:41.327>everything <00:04:41.889>we <00:04:42.028>just <00:04:42.216>covered.

61
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<v Sarah>The <00:04:43.356>FERC-NERC <00:04:44.223>piece <00:04:44.609>is <00:04:44.756>about <00:04:44.996>who <00:04:45.162>writes <00:04:45.456>the <00:04:45.609>rules; <00:04:46.604>this <00:04:46.876>is <00:04:47.056>the <00:04:47.169>price <00:04:47.516>tag <00:04:47.772>when <00:04:47.856>the <00:04:47.976>megawatts <00:04:48.596>don't <00:04:48.828>show <00:04:49.009>up <00:04:49.169>on <00:04:49.347>schedule.

62
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<v Matt>And <00:04:50.716>here's <00:04:51.216>the <00:04:51.322>number <00:04:51.628>that <00:04:51.809>stuck <00:04:52.108>with <00:04:52.369>me — <00:04:53.254>Monitoring <00:04:53.908>Analytics <00:04:54.616>pinning <00:04:54.936>roughly <00:04:55.436>$6.3 <00:04:56.796>billion <00:04:57.943>of <00:04:58.016>the <00:04:58.156>last <00:04:58.536>auction <00:04:59.143>on <00:04:59.580>data <00:04:59.893>center <00:05:00.300>load

63
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<v Matt>nearly <00:05:01.527>thirty <00:05:02.156>billion <00:05:02.785>across <00:05:03.276>four <00:05:03.640>straight <00:05:04.076>auctions.

64
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<v Matt>That <00:05:05.983>bill's <00:05:06.549>already <00:05:07.087>been <00:05:07.339>run <00:05:07.626>up.

65
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<v Sarah>Walton <00:05:09.085>frames <00:05:09.412>it <00:05:09.572>at <00:05:09.725>Energy <00:05:10.063>Tech <00:05:10.426>as <00:05:10.696>electrification <00:05:11.663>load <00:05:11.983>colliding <00:05:12.511>with <00:05:12.679>a <00:05:12.776>supply <00:05:13.219>gap <00:05:13.551>that's <00:05:13.819>already <00:05:14.296>priced <00:05:14.746>in.

66
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<v Sarah>The <00:05:15.649>auction <00:05:16.056>clears <00:05:16.463>high <00:05:16.759>because <00:05:17.079>the <00:05:17.261>capacity <00:05:17.799>isn't <00:05:18.066>there — <00:05:18.879>not <00:05:19.159>because <00:05:19.479>someone's <00:05:19.899>gouging.

67
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<v Matt>Right, <00:05:21.799>but <00:05:21.999>stack <00:05:22.463>this <00:05:22.769>against <00:05:23.159>the <00:05:23.479>12 <00:05:23.739>gigawatts <00:05:24.426>of <00:05:24.559>large <00:05:25.055>load <00:05:25.479>sitting <00:05:25.786>in <00:05:25.859>the <00:05:26.079>PJM <00:05:26.626>queue <00:05:27.039>as <00:05:27.252>of <00:05:27.459>May.

68
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<v Matt>If <00:05:28.679>the <00:05:28.879>FERC <00:05:29.175>directive <00:05:29.719>doesn't <00:05:30.141>specifically <00:05:30.943>bite <00:05:31.252>on <00:05:31.391>that <00:05:31.599>backlog

69
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<v Matt>we're <00:05:32.783>just <00:05:33.092>clearing <00:05:33.590>scarcity <00:05:34.212>at <00:05:34.359>a <00:05:34.445>higher <00:05:34.786>price <00:05:35.186>every <00:05:35.579>auction <00:05:36.159>and <00:05:36.679>calling <00:05:36.986>it <00:05:37.079>a <00:05:37.199>market.

70
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<v Sarah>Here's <00:05:38.992>Amanda <00:05:39.346>Cutshall <00:05:40.039>at <00:05:40.194>Community <00:05:40.729>Impact:

71
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<v Quote>Pacifico <00:05:42.479>Cedar <00:05:42.813>Creek <00:05:43.346>LLC <00:05:44.013>filed <00:05:44.386>a <00:05:44.474>June <00:05:44.826>24 <00:05:45.359>application <00:05:45.978>with <00:05:46.126>the <00:05:46.253>Texas <00:05:46.646>Comptroller <00:05:47.406>for <00:05:47.746>a <00:05:47.856>project <00:05:48.399>at <00:05:48.586>382 <00:05:49.546>Earl <00:05:49.930>Callahan <00:05:50.570>Road

72
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<v Quote>Cedar <00:05:51.359>Creek <00:05:52.122>that <00:05:52.226>would <00:05:52.474>pair <00:05:52.719>an <00:05:52.876>unnamed <00:05:53.290>data <00:05:53.580>center <00:05:53.843>tenant <00:05:54.218>with <00:05:54.386>a <00:05:54.490>multibillion-dollar <00:05:55.686>natural <00:05:56.206>gas-fired <00:05:56.959>power <00:05:57.279>facility.

73
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<v Matt>Bastrop <00:05:58.937>ISD <00:05:59.561>sits <00:05:59.865>down <00:06:00.121>June <00:06:00.537>24 <00:06:01.257>to <00:06:01.461>consider <00:06:01.937>a <00:06:02.117>ten-year <00:06:02.737>JETI <00:06:03.097>abatement <00:06:03.697>for <00:06:03.887>Pacifico — <00:06:05.177>capping <00:06:05.537>the <00:06:05.701>property <00:06:06.124>value <00:06:06.510>on <00:06:06.674>school <00:06:07.124>taxes <00:06:07.737>from <00:06:08.137>2029

74
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<v Matt>through <00:06:09.497>2038. <00:06:10.745>Same <00:06:11.625>nine-o'clock-session <00:06:12.617>dynamic <00:06:13.230>we <00:06:13.397>saw <00:06:13.617>out <00:06:13.790>of <00:06:13.950>Grimes <00:06:14.366>County, <00:06:15.394>except <00:06:15.769>this <00:06:15.977>one's <00:06:16.457>$2.2 <00:06:17.417>billion.

75
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<v Sarah>And <00:06:19.630>it's <00:06:19.874>paired — <00:06:20.745>data <00:06:20.983>center <00:06:21.321>plus <00:06:21.617>a <00:06:21.707>natural <00:06:22.137>gas <00:06:22.439>facility <00:06:22.990>on <00:06:23.257>2,842 <00:06:25.030>acres.

76
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<v Sarah>That's <00:06:26.571>nearly <00:06:26.857>twice <00:06:27.321>EdgeConneX's <00:06:28.110>three <00:06:28.427>planned <00:06:28.830>Cedar <00:06:29.137>Creek <00:06:29.390>campuses <00:06:29.897>combined, <00:06:30.857>on <00:06:31.097>one <00:06:31.433>deed.

77
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<v Matt>The <00:06:32.686>tenant's <00:06:33.387>unnamed.

78
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<v Matt>So <00:06:35.257>Bastrop <00:06:35.797>schools <00:06:36.257>are <00:06:36.417>being <00:06:36.684>asked <00:06:37.097>to <00:06:37.337>cap <00:06:37.604>their <00:06:37.837>tax <00:06:38.201>base <00:06:38.497>for <00:06:38.697>a <00:06:38.846>decade <00:06:39.297>for <00:06:39.457>a <00:06:39.550>customer <00:06:40.057>nobody's <00:06:40.675>identified <00:06:41.337>yet.

79
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<v Sarah>Application <00:06:43.110>filed, <00:06:43.870>in-service <00:06:44.430>targeted <00:06:44.897>for <00:06:45.097>2028.

80
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<v Sarah>Filing <00:06:46.990>is <00:06:47.157>one <00:06:47.417>step; <00:06:48.030>approval <00:06:48.484>is <00:06:48.637>another — <00:06:49.545>this <00:06:49.764>is <00:06:49.857>a <00:06:50.017>JETI <00:06:50.350>application <00:06:50.977>under <00:06:51.257>review, <00:06:51.957>not <00:06:52.417>a <00:06:52.503>signed <00:06:52.841>agreement.

81
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<v Sarah>The <00:06:54.197>Comptroller <00:06:54.761>hasn't <00:06:55.242>blessed <00:06:55.497>it.

82
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<v Matt>Here's <00:06:56.777>the <00:06:56.937>split-screen: <00:06:58.350>Virginia's <00:06:58.905>over <00:06:59.161>here <00:06:59.461>weighing <00:06:59.897>a <00:07:00.025>grid-cost <00:07:00.684>shift <00:07:01.081>onto <00:07:01.385>data <00:07:01.647>centers

83
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<v Matt>and <00:07:02.777>Bastrop's <00:07:03.385>over <00:07:03.625>here <00:07:03.857>writing <00:07:04.217>one <00:07:04.537>a <00:07:04.697>ten-year <00:07:05.277>tax <00:07:05.644>break.

84
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<v Matt>Somebody's <00:07:07.297>doing <00:07:07.564>subtraction <00:07:08.350>while <00:07:08.661>somebody <00:07:09.113>else <00:07:09.561>does <00:07:09.879>addition.

85
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<v Sarah>This <00:07:11.441>one's <00:07:11.749>from <00:07:12.081>CRE <00:07:12.594>Daily:

86
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<v Quote>Several <00:07:14.184>major <00:07:14.717>US <00:07:15.048>data-center <00:07:15.688>operators <00:07:16.324>are <00:07:16.548>shopping <00:07:16.957>majority <00:07:17.441>stakes <00:07:17.811>in <00:07:17.891>their <00:07:18.080>companies <00:07:18.691>as <00:07:19.037>AI-driven <00:07:19.704>usage <00:07:20.161>drives <00:07:20.564>valuations <00:07:21.277>to <00:07:21.444>new <00:07:21.704>highs

87
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<v Quote>The <00:07:22.472>Wall <00:07:22.698>Street <00:07:22.944>Journal <00:07:23.304>reports.

88
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<v Quote>Firms <00:07:24.784>including <00:07:25.204>Netrality <00:07:25.848>Data <00:07:26.164>Centers

89
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<v Quote>DataBank <00:07:27.571>Edged <00:07:28.304>and <00:07:28.504>EdgeCore <00:07:29.034>Digital <00:07:29.448>Infrastructure <00:07:30.392>have <00:07:30.644>engaged <00:07:31.134>bankers <00:07:31.651>to <00:07:31.754>solicit <00:07:32.173>offers <00:07:32.616>this <00:07:32.801>summer.

90
00:07:33.585 --> 00:07:43.425
<v Matt>So <00:07:33.825>Netrality <00:07:34.665>and <00:07:34.865>DataBank <00:07:35.465>are <00:07:35.647>shopping <00:07:36.198>majority <00:07:36.694>stakes <00:07:37.137>this <00:07:37.334>summer — <00:07:38.305>Edged <00:07:38.705>and <00:07:39.041>EdgeCore <00:07:39.805>too — <00:07:40.725>and <00:07:40.825>the <00:07:40.998>whole <00:07:41.358>pitch <00:07:41.932>is <00:07:42.205>secured <00:07:42.732>power <00:07:43.305>and

91
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<v Matt>existing <00:07:44.145>customers. <00:07:46.158>Funny <00:07:46.305>timing.

92
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<v Matt>We <00:07:48.113>just <00:07:48.345>spent <00:07:48.593>this <00:07:48.838>whole <00:07:49.165>episode <00:07:49.638>on <00:07:49.816>Virginia <00:07:50.445>pricing <00:07:50.905>a <00:07:51.041>cost <00:07:51.478>shift <00:07:51.793>onto <00:07:52.033>data <00:07:52.285>centers <00:07:52.845>and <00:07:53.345>FERC <00:07:53.785>telling <00:07:54.105>NERC <00:07:54.492>to <00:07:54.585>write <00:07:54.849>standards <00:07:55.473>that <00:07:55.729>name <00:07:56.033>this

93
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<v Matt>load <00:07:56.545>class. <00:07:57.285>And <00:07:57.945>now <00:07:58.365>private <00:07:58.842>equity's <00:07:59.318>being <00:07:59.665>told: <00:08:00.305>buy <00:08:00.885>now, <00:08:01.473>tens <00:08:02.065>of <00:08:02.287>billions, <00:08:03.065>control <00:08:03.965>the <00:08:04.225>pipeline.

94
00:08:05.966 --> 00:08:11.306
<v Sarah>The <00:08:06.053>value <00:08:06.443>driver <00:08:06.839>is <00:08:06.999>right <00:08:07.306>there <00:08:07.533>in <00:08:07.606>the <00:08:07.879>WSJ <00:08:08.546>read — <00:08:09.426>vacancy <00:08:10.026>under <00:08:10.286>one <00:08:10.546>percent

95
00:08:11.356 --> 00:08:15.586
<v Sarah>and <00:08:11.546>the <00:08:11.735>assets <00:08:12.194>that <00:08:12.453>clear <00:08:12.846>are <00:08:13.066>the <00:08:13.250>ones <00:08:13.566>already <00:08:14.036>holding <00:08:14.426>a <00:08:14.514>grid <00:08:14.764>connection.

96
00:08:15.666 --> 00:08:21.106
<v Sarah>The <00:08:15.940>square <00:08:16.196>footage <00:08:16.599>is <00:08:16.762>secondary; <00:08:17.616>the <00:08:17.893>energized <00:08:18.519>interconnect <00:08:19.293>is <00:08:19.526>the <00:08:19.693>prize.

97
00:08:21.279 --> 00:08:23.866
<v Matt>Right — <00:08:22.266>and <00:08:22.450>that's <00:08:22.886>the <00:08:23.042>tell.

98
00:08:23.976 --> 00:08:32.706
<v Matt>The <00:08:24.368>scarcity <00:08:24.912>making <00:08:25.226>these <00:08:25.490>platforms <00:08:26.106>worth <00:08:26.346>a <00:08:26.486>fortune <00:08:27.266>is <00:08:27.466>the <00:08:27.666>same <00:08:28.048>scarcity <00:08:28.608>Virginia <00:08:29.186>and <00:08:29.666>PJM <00:08:30.286>are <00:08:30.519>about <00:08:30.839>to <00:08:31.013>start <00:08:31.386>billing <00:08:31.766>for.

99
00:08:32.919 --> 00:08:39.613
<v Matt>So <00:08:33.426>is <00:08:33.606>the <00:08:33.728>majority-stake <00:08:34.626>sale <00:08:34.986>the <00:08:35.234>exit <00:08:35.792>before <00:08:36.086>the <00:08:36.226>cost <00:08:36.599>shift <00:08:36.933>lands <00:08:37.293>on <00:08:37.386>the <00:08:37.559>operator's <00:08:38.146>books?

100
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<v Sarah>It <00:08:39.746>reprices <00:08:40.439>scarcity <00:08:40.906>the <00:08:41.086>way <00:08:41.346>Carlyle <00:08:41.986>repriced <00:08:42.626>Copia — <00:08:43.626>the <00:08:43.797>connection <00:08:44.386>is <00:08:44.586>the <00:08:44.759>moat.

101
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<v Sarah>But <00:08:45.786>a <00:08:45.879>moat <00:08:46.106>you <00:08:46.286>got <00:08:46.519>by <00:08:46.679>being <00:08:47.013>early <00:08:47.399>doesn't <00:08:47.778>help <00:08:47.970>much <00:08:48.242>when <00:08:48.346>the <00:08:48.522>regulator <00:08:49.086>changes <00:08:49.546>the <00:08:49.762>toll.

102
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<v Host>Got <00:08:51.403>a <00:08:51.523>tip, <00:08:51.763>a <00:08:51.854>correction, <00:08:52.496>or <00:08:52.643>a <00:08:52.736>story <00:08:53.056>we <00:08:53.186>should <00:08:53.350>be <00:08:53.447>watching <00:08:53.830>in <00:08:53.903>the <00:08:54.027>data <00:08:54.317>center <00:08:54.590>world?

103
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<v Host>Send <00:08:55.696>it <00:08:55.843>our <00:08:56.043>way <00:08:56.416>at <00:08:56.747>datacenterdaily <00:08:57.856>at <00:08:58.023>lantern <00:08:58.541>podcasts <00:08:59.363>dot <00:08:59.583>com.

104
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<v Host>We'd <00:09:00.635>love <00:09:00.816>to <00:09:00.955>hear <00:09:01.115>from <00:09:01.303>you.

105
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<v Host>What <00:09:02.606>we're <00:09:02.783>watching <00:09:03.235>next: <00:09:03.912>if <00:09:04.359>the <00:09:04.486>Texas <00:09:04.879>Comptroller <00:09:05.510>determines <00:09:06.079>Pacifico <00:09:06.632>Cedar <00:09:06.952>Creek's <00:09:07.379>JETI <00:09:07.666>application <00:09:08.232>is <00:09:08.401>complete

106
00:09:09.419 --> 00:09:14.899
<v Host>the <00:09:09.619>agency <00:09:10.139>has <00:09:10.339>60 <00:09:10.739>days <00:09:11.086>to <00:09:11.203>recommend <00:09:11.859>or <00:09:12.129>decline <00:09:12.979>the <00:09:13.290>proposed <00:09:13.959>tax <00:09:14.315>agreement.

107
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<v Host>We've <00:09:15.819>put <00:09:15.992>links <00:09:16.286>to <00:09:16.392>every <00:09:16.712>story <00:09:17.011>from <00:09:17.192>today's <00:09:17.583>briefing <00:09:17.966>in <00:09:18.039>the <00:09:18.163>show <00:09:18.499>notes, <00:09:19.512>so <00:09:19.639>you <00:09:19.739>can <00:09:19.919>dig <00:09:20.131>into <00:09:20.279>the <00:09:20.403>ones <00:09:20.699>you <00:09:20.835>want <00:09:20.952>to <00:09:21.107>read <00:09:21.331>more <00:09:21.529>closely.

108
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<v Host>That's <00:09:23.239>The <00:09:23.363>Data <00:09:23.665>Center <00:09:23.992>Daily <00:09:24.299>for <00:09:24.499>today.

109
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<v Host>This <00:09:25.752>is <00:09:25.899>a <00:09:26.009>Lantern <00:09:26.599>Podcast.