WEBVTT

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<v Sarah>The <00:00:00.224>same <00:00:00.560>grid <00:00:00.951>scarcity <00:00:01.536>that <00:00:01.680>just <00:00:02.067>stuck <00:00:02.560>PJM <00:00:03.088>ratepayers <00:00:03.712>with <00:00:03.911>billions <00:00:04.667>is <00:00:05.100>now <00:00:05.360>a <00:00:05.484>thousand-dollar <00:00:06.309>retail <00:00:06.813>pitch.

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<v Sarah>Buy <00:00:08.122>the <00:00:08.295>moat, <00:00:08.787>apparently.

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<v Sarah>This <00:00:10.935>is <00:00:11.082>The <00:00:11.266>Data <00:00:11.568>Center <00:00:11.922>Daily.

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<v Sarah>Today: <00:00:13.362>a <00:00:13.655>REIT <00:00:13.909>story <00:00:14.282>putting <00:00:14.602>a <00:00:14.695>price <00:00:15.015>on <00:00:15.142>the <00:00:15.273>scarcity <00:00:15.869>we've <00:00:16.122>watched <00:00:16.455>build <00:00:16.802>all <00:00:17.122>week

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<v Sarah>and <00:00:18.042>a <00:00:18.146>step-back <00:00:18.695>on <00:00:18.962>PJM's <00:00:19.589>large-load <00:00:20.402>plan — <00:00:21.168>twelve <00:00:21.506>proposals <00:00:22.114>went <00:00:22.290>into <00:00:22.502>the <00:00:22.615>Board's <00:00:23.122>call

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<v Sarah>and <00:00:23.810>only <00:00:24.102>one <00:00:24.466>came <00:00:24.822>out.

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<v Sarah>Here's <00:00:26.200>AOL:

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<v Quote>Real <00:00:27.691>estate <00:00:28.009>investment <00:00:28.502>trusts <00:00:28.965>(REITs) <00:00:29.757>have <00:00:29.931>staged <00:00:30.325>a <00:00:30.472>comeback <00:00:30.738>in <00:00:30.925>2026 <00:00:31.872>after <00:00:32.285>years <00:00:32.712>of <00:00:32.821>declining <00:00:33.378>or <00:00:33.542>moving <00:00:33.947>sideways.

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<v Quote>And <00:00:35.405>one <00:00:35.698>category <00:00:36.152>of <00:00:36.258>REITs, <00:00:36.893>data <00:00:37.145>centers, <00:00:37.858>is <00:00:38.027>particularly <00:00:38.825>hot <00:00:39.045>right <00:00:39.305>now.

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<v Matt>So <00:00:40.411>this <00:00:40.784>is <00:00:40.918>where <00:00:41.091>the <00:00:41.259>week <00:00:41.558>lands.

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<v Matt>The <00:00:42.635>same <00:00:42.953>scarcity <00:00:43.483>that's <00:00:43.727>sticking <00:00:44.171>PJM <00:00:44.635>ratepayers <00:00:45.179>with <00:00:45.417>thirty <00:00:45.751>billion <00:00:46.224>in <00:00:46.395>grid <00:00:46.744>costs <00:00:47.339>just <00:00:47.891>got <00:00:48.082>packaged <00:00:48.704>as <00:00:48.891>a <00:00:49.015>personal-finance <00:00:49.904>headline.

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<v Matt>Put <00:00:51.003>your <00:00:51.175>thousand <00:00:51.584>bucks <00:00:51.904>in, <00:00:52.338>folks.

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<v Sarah>Realty <00:00:53.920>Income <00:00:54.384>upping <00:00:54.711>its <00:00:54.939>data <00:00:55.188>center <00:00:55.602>exposure — <00:00:56.683>that's <00:00:56.991>the <00:00:57.099>real <00:00:57.360>signal <00:00:57.811>under <00:00:58.031>the <00:00:58.148>retail <00:00:58.561>framing.

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<v Sarah>The <00:00:59.664>moat <00:01:00.091>is <00:01:00.278>an <00:01:00.398>energized <00:01:01.118>interconnect, <00:01:02.271>and <00:01:02.391>capital <00:01:02.861>markets <00:01:03.251>are <00:01:03.421>pricing <00:01:03.798>it <00:01:03.899>like <00:01:04.161>vacancy <00:01:04.704>is <00:01:04.851>under <00:01:05.091>one <00:01:05.301>percent.

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<v Matt>Right. <00:01:07.789>Virginia's <00:01:08.365>trying <00:01:08.598>to <00:01:08.699>bill <00:01:08.939>data <00:01:09.181>centers <00:01:09.551>for <00:01:09.675>grid <00:01:10.024>costs

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<v Matt>Bastrop's <00:01:11.571>handing <00:01:11.891>a <00:01:12.000>decade <00:01:12.438>of <00:01:12.571>tax <00:01:12.864>abatements <00:01:13.398>to <00:01:13.504>an <00:01:13.671>unnamed <00:01:14.148>tenant

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<v Matt>and <00:01:15.131>AOL's <00:01:15.801>telling <00:01:16.071>grandma <00:01:16.544>to <00:01:16.731>buy <00:01:17.104>in <00:01:17.417>before <00:01:17.731>the <00:01:17.911>invoice <00:01:18.411>clears.

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<v Matt>Somehow, <00:01:20.291>the <00:01:20.475>ratepayer <00:01:21.051>is <00:01:21.251>the <00:01:21.431>one <00:01:21.680>person <00:01:22.224>no <00:01:22.531>one's <00:01:22.779>answering <00:01:23.291>for.

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<v Sarah>I'll <00:01:24.523>give <00:01:24.671>the <00:01:24.784>asset <00:01:25.118>logic <00:01:25.511>one <00:01:25.753>sentence: <00:01:26.459>when <00:01:26.991>the <00:01:27.107>operators <00:01:27.631>are <00:01:27.741>selling <00:01:28.144>majority <00:01:28.640>stakes <00:01:29.111>and <00:01:29.311>the <00:01:29.424>REITs <00:01:29.791>are <00:01:29.920>buying

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<v Sarah>the <00:01:30.878>smart <00:01:31.251>money <00:01:31.511>has <00:01:31.751>decided <00:01:32.191>the <00:01:32.313>scarcity <00:01:32.891>is <00:01:33.161>durable <00:01:34.011>and <00:01:34.301>someone <00:01:34.715>else <00:01:35.035>eats <00:01:35.311>the <00:01:35.467>cost <00:01:35.931>shift.

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<v Matt>That's <00:01:37.491>the <00:01:37.659>tell, <00:01:37.998>Sarah.

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<v Matt>Institutional <00:01:39.811>and <00:01:40.000>retail <00:01:40.471>capital <00:01:40.951>are <00:01:41.181>flowing <00:01:41.584>in <00:01:41.744>at <00:01:41.891>the <00:01:42.091>exact <00:01:42.560>moment <00:01:43.031>the <00:01:43.243>bill's <00:01:43.571>being <00:01:43.821>written.

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<v Matt>Somebody <00:01:45.251>saw <00:01:45.391>the <00:01:45.520>timing <00:01:45.951>and <00:01:46.075>said — <00:01:47.019>sell <00:01:47.264>it <00:01:47.471>now.

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<v Matt>Everybody's <00:01:49.164>calling <00:01:49.727>PJM's <00:01:50.661>large-load <00:01:51.647>integration <00:01:52.330>plan <00:01:52.874>a <00:01:53.114>reliability <00:01:54.074>milestone.

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<v Matt>But <00:01:55.621>we've <00:01:55.981>heard <00:01:56.381>queue <00:01:56.783>reform <00:01:57.285>before, <00:01:58.274>and <00:01:58.414>the <00:01:58.564>backlog <00:01:59.274>kept <00:01:59.654>growing.

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<v Matt>So <00:02:00.906>what's <00:02:01.154>different <00:02:01.562>this <00:02:01.818>time — <00:02:02.334>and <00:02:02.447>if <00:02:02.581>it <00:02:02.703>sticks, <00:02:03.634>who <00:02:03.834>gains <00:02:04.296>leverage <00:02:04.874>and <00:02:05.154>who <00:02:05.341>loses <00:02:05.727>it?

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<v Sarah>The <00:02:06.223>design <00:02:06.684>matters <00:02:07.098>more <00:02:07.386>than <00:02:07.534>the <00:02:07.656>headline.

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<v Sarah>PJM's <00:02:09.327>Board <00:02:09.634>announced <00:02:10.042>this <00:02:10.261>in <00:02:10.444>January — <00:02:11.567>formally

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<v Sarah>CIFP-LLA — <00:02:14.287>after <00:02:14.581>an <00:02:14.687>accelerated <00:02:15.341>stakeholder <00:02:15.984>process <00:02:16.490>that <00:02:16.607>produced <00:02:17.103>twelve <00:02:17.578>competing <00:02:18.234>proposals.

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<v Sarah>The <00:02:19.554>Board <00:02:19.786>didn't <00:02:20.042>just <00:02:20.282>pick <00:02:20.534>one <00:02:20.774>sponsor's <00:02:21.370>plan.

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<v Sarah>It <00:02:22.438>borrowed <00:02:22.826>from <00:02:23.014>several, <00:02:23.714>which <00:02:23.941>at <00:02:24.034>least <00:02:24.274>tells <00:02:24.514>you <00:02:24.650>they're <00:02:24.908>trying <00:02:25.167>to <00:02:25.301>build <00:02:25.474>something <00:02:25.901>broad <00:02:26.268>enough <00:02:26.527>to <00:02:26.704>survive <00:02:27.274>FERC <00:02:27.605>review.

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<v Sarah>RMI's <00:02:29.254>May <00:02:29.505>analysis <00:02:30.114>put <00:02:30.254>the <00:02:30.358>pressure <00:02:30.767>in <00:02:30.941>plain <00:02:31.344>numbers: <00:02:32.414>the <00:02:32.661>PJM <00:02:33.171>region <00:02:33.574>has <00:02:33.804>roughly <00:02:34.314>30 <00:02:34.694>gigawatts <00:02:35.327>of <00:02:35.494>new <00:02:35.754>load <00:02:36.131>trying <00:02:36.527>to <00:02:36.684>connect <00:02:37.087>by <00:02:37.274>2030

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<v Sarah>one <00:02:38.581>of <00:02:38.654>the <00:02:38.784>fastest-growing <00:02:39.651>demand <00:02:40.061>zones <00:02:40.421>in <00:02:40.494>the <00:02:40.614>country.

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<v Sarah>The <00:02:41.874>new <00:02:42.074>part <00:02:42.447>is <00:02:42.586>what <00:02:42.874>PJM <00:02:43.394>did <00:02:43.541>at <00:02:43.614>the <00:02:43.738>same <00:02:44.074>time.

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<v Sarah>Utility <00:02:45.498>Dive <00:02:45.807>reported <00:02:46.254>the <00:02:46.354>day <00:02:46.520>before <00:02:46.814>the <00:02:46.927>Board <00:02:47.237>announcement <00:02:47.866>that <00:02:48.527>PJM <00:02:49.174>had <00:02:49.394>trimmed <00:02:49.734>its <00:02:49.962>near-term <00:02:50.602>load <00:02:50.865>forecast <00:02:51.524>because <00:02:52.181>of <00:02:52.287>stricter <00:02:52.794>data <00:02:53.160>center

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<v Sarah>vetting <00:02:53.843>criteria. <00:02:55.061>So <00:02:55.306>they're <00:02:55.554>already <00:02:55.887>deciding <00:02:56.346>what <00:02:56.531>counts <00:02:56.901>as <00:02:57.018>firm <00:02:57.354>demand, <00:02:58.294>not <00:02:58.506>just <00:02:58.682>promising <00:02:59.154>a <00:02:59.244>cleaner <00:02:59.674>queue.

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<v Sarah>Then <00:03:01.114>FERC <00:03:01.468>turned <00:03:01.727>up <00:03:01.854>the <00:03:01.978>heat <00:03:02.287>in <00:03:02.474>June <00:03:02.842>with <00:03:03.098>show-cause <00:03:03.743>orders <00:03:04.181>to <00:03:04.394>PJM <00:03:04.914>and <00:03:05.114>five <00:03:05.487>other <00:03:05.802>grid <00:03:06.066>operators

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<v Sarah>giving <00:03:07.466>them <00:03:07.754>60 <00:03:08.154>days <00:03:08.501>to <00:03:08.645>defend <00:03:09.274>or <00:03:09.504>rewrite <00:03:10.034>their <00:03:10.301>large-load <00:03:10.943>tariff <00:03:11.434>rules.

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<v Sarah>The <00:03:12.538>test <00:03:12.821>is <00:03:12.908>pretty <00:03:13.171>simple: <00:03:14.047>do <00:03:14.174>the <00:03:14.274>vetting <00:03:14.594>rules <00:03:14.858>come <00:03:15.146>with <00:03:15.322>financial <00:03:15.861>teeth — <00:03:16.634>deposits

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<v Sarah>milestone <00:03:17.976>payments <00:03:18.614>curtailment <00:03:19.181>obligations — <00:03:20.434>and <00:03:20.607>actually <00:03:21.114>gate <00:03:21.487>interconnection <00:03:22.219>milestones?

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<v Sarah>Or <00:03:23.807>do <00:03:23.946>they <00:03:24.122>just <00:03:24.394>reshuffle <00:03:24.927>queue <00:03:25.250>positions <00:03:25.794>while <00:03:26.090>cost <00:03:26.539>allocation <00:03:27.234>and <00:03:27.421>study <00:03:27.812>sequencing <00:03:28.458>stay <00:03:28.762>basically <00:03:29.234>the <00:03:29.434>same?

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<v Matt>So <00:03:30.101>if <00:03:30.314>PJM's <00:03:30.934>vetting <00:03:31.327>is <00:03:31.494>already <00:03:31.958>trimming <00:03:32.354>the <00:03:32.531>demand <00:03:32.936>forecast

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<v Matt>does <00:03:34.106>that <00:03:34.314>hand <00:03:34.661>an <00:03:34.770>advantage <00:03:35.327>to <00:03:35.491>hyperscalers <00:03:36.282>with <00:03:36.531>shovel-ready <00:03:37.207>sites <00:03:37.714>and <00:03:37.891>creditworthy <00:03:38.522>load <00:03:38.794>profiles

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<v Matt>or <00:03:40.186>does <00:03:40.367>everyone <00:03:40.854>get <00:03:41.105>squeezed <00:03:41.714>the <00:03:41.898>same <00:03:42.214>way?

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<v Sarah>Not <00:03:43.343>equally. <00:03:44.073>It <00:03:44.439>almost <00:03:44.753>certainly <00:03:45.169>separates <00:03:45.713>the <00:03:45.900>field.

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<v Sarah>If <00:03:46.893>you're <00:03:47.073>a <00:03:47.170>hyperscaler <00:03:47.973>and <00:03:48.173>you <00:03:48.273>can <00:03:48.457>post <00:03:48.733>the <00:03:48.839>bigger <00:03:49.161>financial <00:03:49.646>commitments

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<v Sarah>show <00:03:50.913>a <00:03:51.017>firm <00:03:51.329>operating <00:03:51.897>load <00:03:52.206>shape

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<v Sarah>and <00:03:52.931>coordinate <00:03:53.545>with <00:03:53.693>the <00:03:53.823>utility <00:03:54.366>on <00:03:54.530>behind-the-meter <00:03:55.433>or <00:03:55.673>co-located <00:03:56.451>generation

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<v Sarah>you're <00:03:57.773>the <00:03:57.886>customer <00:03:58.366>these <00:03:58.686>stricter <00:03:59.183>screens <00:03:59.753>favor.

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<v Sarah>PJM's <00:04:01.479>market <00:04:01.823>monitor <00:04:02.361>said <00:04:02.606>in <00:04:02.793>June <00:04:03.209>that <00:04:03.633>the <00:04:03.806>tight <00:04:04.142>supply-demand <00:04:05.023>balance

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<v Sarah>plus <00:04:06.046>elevated <00:04:06.544>capacity <00:04:07.163>auction <00:04:07.593>prices

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<v Sarah>is <00:04:08.783>already <00:04:09.323>pushing <00:04:09.733>negotiating <00:04:10.460>power <00:04:10.839>toward <00:04:11.169>customers <00:04:11.713>who <00:04:11.873>can <00:04:12.073>de-risk <00:04:12.686>interconnection <00:04:13.413>for <00:04:13.613>the <00:04:13.753>utility.

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<v Sarah>The <00:04:15.113>wildcard <00:04:15.806>is <00:04:15.953>still <00:04:16.206>at <00:04:16.333>the <00:04:16.446>state <00:04:16.766>level.

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<v Sarah>RMI <00:04:18.246>flags <00:04:18.745>that <00:04:19.060>PJM's <00:04:19.735>thirteen <00:04:20.279>member <00:04:20.633>states <00:04:21.225>keep <00:04:21.713>a <00:04:21.813>lot <00:04:22.046>of <00:04:22.201>room <00:04:22.473>on <00:04:22.713>cost <00:04:23.091>allocation <00:04:23.713>and <00:04:23.913>siting <00:04:24.305>approvals.

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<v Sarah>So <00:04:25.650>states <00:04:26.025>that <00:04:26.217>move <00:04:26.553>fast <00:04:26.926>on <00:04:27.084>permitting <00:04:27.633>and <00:04:27.833>cut <00:04:28.130>direct <00:04:28.521>infrastructure <00:04:29.289>cost-sharing <00:04:30.126>deals <00:04:30.425>with <00:04:30.606>large <00:04:30.953>loads <00:04:31.513>can <00:04:32.033>still <00:04:32.297>pull <00:04:32.615>campuses <00:04:33.161>away <00:04:33.385>from

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<v Sarah>states <00:04:34.025>that <00:04:34.213>don't <00:04:35.006>no <00:04:35.147>matter <00:04:35.401>what <00:04:35.613>the <00:04:35.713>queue <00:04:35.982>reform <00:04:36.457>says <00:04:36.766>on <00:04:36.966>paper.

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<v Host>If <00:04:38.639>The <00:04:38.763>Data <00:04:39.053>Center <00:04:39.326>Daily <00:04:39.699>helps <00:04:39.919>you <00:04:40.027>keep <00:04:40.272>up <00:04:40.395>with <00:04:40.499>the <00:04:40.667>week, <00:04:41.307>take <00:04:41.539>a <00:04:41.625>second <00:04:41.952>to <00:04:42.107>subscribe <00:04:42.575>wherever <00:04:42.879>you're <00:04:43.067>listening.

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<v Host>And <00:04:44.352>if <00:04:44.479>you <00:04:44.559>can <00:04:44.659>leave <00:04:44.899>a <00:04:44.966>quick <00:04:45.156>review, <00:04:45.931>that <00:04:46.112>helps <00:04:46.406>other <00:04:46.585>people <00:04:46.907>find <00:04:47.119>the <00:04:47.227>show <00:04:47.519>too.

59
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<v Host>We'll <00:04:48.980>be <00:04:49.060>watching <00:04:49.507>the <00:04:49.647>FERC <00:04:50.015>show-cause <00:04:50.740>response <00:04:51.213>window <00:04:51.507>for <00:04:51.754>PJM <00:04:52.467>and <00:04:52.831>five <00:04:53.127>other <00:04:53.375>grid <00:04:53.623>operators <00:04:54.180>on <00:04:54.354>large-load <00:04:54.984>tariff <00:04:55.407>rules.

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<v Host>If <00:04:56.647>you <00:04:56.799>want <00:04:56.954>to <00:04:57.047>dig <00:04:57.227>further <00:04:57.695>into <00:04:57.931>anything <00:04:58.340>we <00:04:58.487>covered <00:04:58.820>today, <00:04:59.620>links <00:04:59.914>to <00:05:00.007>every <00:05:00.287>story <00:05:00.727>are <00:05:00.874>in <00:05:00.947>the <00:05:01.055>show <00:05:01.314>notes.

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<v Host>Follow <00:05:02.647>whichever <00:05:03.055>ones <00:05:03.281>caught <00:05:03.519>your <00:05:03.747>ear.

62
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<v Host>That's <00:05:05.027>The <00:05:05.151>Data <00:05:05.441>Center <00:05:05.714>Daily <00:05:06.067>for <00:05:06.220>today.

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<v Host>This <00:05:07.514>is <00:05:07.767>a <00:05:07.867>Lantern <00:05:08.387>Podcast.