Digital Realty Trust, Inc. (DLR) September 9, 2026 Conference Transcript

Thank you again for being here with us today, Michael Funk, Bank of America. Really happy to have Jordan Sadler from Digital Realty. We were just saying before we walked in that we're going to have Digital Realty, I think, speaking three times in the next week and a half at Bank of America. So thank you again for being here with us this afternoon for the first of the three presentations. I don't know if you had any kind of safe harbor that you wanted to read off first, Jordan, or anything else.

No, no, no safe harbor per se. But, you know, please do visit our website, our investor relations website. In the event anybody has any questions about some of the numbers or statistics or data we put out here today.

OK, perfect. I appreciate that. So I wanted to start with the with the core FFO growth because the commentary, the language, it evolved last quarter. The way that you talked about the growth rate. And prior to last quarter, or I'll probably get this partly wrong, or you can correct me, but I think that the narrative was more of like a high single digit for longer and steady narrative. And I'm paraphrasing. paraphrasing. And then, you know, last quarter, you know, I think you talked about, you know, double digit growth for 2027 and beyond, right? So leaning more into development-based growth and other factors driving higher growth. What was the genesis of that change in language or communication, if I'm framing that right?

Yeah. If I may, I'm going to back it up. a couple of years to maybe tell a little bit of the story to how we got to it.

Please, yeah, give the background.

Just to give a little bit of a context. And thank you again, Michael, for all that you do and your coverage for us and spreading the word and for having us out here today and setting up meetings with folks. So just backing it up to 2024, February 24, which is the fourth quarter of 23 earnings conference call where we gave guidance for 24, which was in the low single digits bottom line growth, right? Which was not a super satisfactory number in the context of what was going on in the world. Um, but you were still coming through negative releasing spreads. We were coming through, right. There were, there's plenty of things dragging on us. Yeah. Negative, you know, uh, rising rates obviously were a big impact. We had de-levered tremendously two turns from, you know, virtually seven times at March 31, 2023 to, you know, five times by the end of the year. So that two turns delevering was definitely impactful and dragging on us in 24 as well. So that low single digits growth number we put out there was not super satisfactory in a construct or a world where NVIDIA was seeing explosive growth And, you know, AI was was ripping and taking hold. And on the earnings conference call, you may recall, you know, Matt gave the, you know, sheepishly gave the low single digits growth guide. But when asked about the algorithm, what does growth look like longer term? He said, you know, mid single digits, right? He walked through a construct where in 2025, he was pointing folks to basically 5% growth. and roll forward, you know, through 24 and into early 25. At the outset of 25, he ended up giving guidance for the year that was a little bit better than he had originally forecast. He said, we're probably going to do closer to 6% this year, right? So it was a little bit better. Things had come along. You know, obviously the environment was helpful. Our leasing got better. Our leasing spreads got better, to your point. Our development started to come along. Rates certainly weren't helping, but the business was definitely getting better and we were executing roll forward to the beginning of this year. We had, we, we ended up delivering 10% bottom line growth versus the 6% we expected last year. And for this year, we were saying, Hey, we think we can do really well again today. Sorry, this year, things are really strong. We're building a really nice backlog and we've got momentum in all aspects of our business, which I'll get to, and we got it to 8% growth, not the double digits number. What happened in between sort of February of this year and our July conference call was we had very, very good progress in both 1Q, 2Q signings, very strong signings in the first half of the year, year over year relative to all of the leasing in 2025. We were ahead. And that resulted in a backlog at June 30 of $1.9 billion of signed but not commenced leases, including the lease we signed in July post-quarter end that we reported on, which is a $400 million lease. We were at $2.3 billion. That $2.3 billion equals north of 30% of our in-place data center revenue. So as you look to that signed but not commenced revenue commencing, 31, 32% on a base of, you know, five and change billion of data center revenue, you got more than 10% compounded. And that's really where the bulk of this is coming from. And that's what enabled us to sort of reset the course and the cadence for guidance. And we said it to your point for 20, you know, we said this year we'll deliver double digit growth. We'll also do it next year and potentially beyond that.

And I want to dissect some of the, you know, some of the drivers and the changing guidance. But, you know, I would characterize digital realty management team as being, you know, incredibly prudent and thoughtful the way that you approach the business and in underwriting risk. and this is probably my interpretation, but I'm an equity analyst, so I always try to create my own narrative, right, is that maybe a year or two ago, there was less certainty of digital realty and the staying power or longevity of the AI demand cycle, or maybe specifically where that cycle was moving for development, okay? It feels to me as if based on what you just said, and you know, some of the lease signings and where you are developing in recent site acquisition, that there is greater confidence now at digital realty and the duration sustainability of the AI demand cycle. Is that accurate framing?

It is. That is absolutely a key piece of the puzzle. We talk about three core pillars of growth, right? We talk about the zero to one plus interconnection business, which we've been driving. The hyperscale business, which you're speaking to now, right? Big leases going into the backlog. Execution there is imperative and takes that you're signing those. You're de-risking future growth. And then the third piece of the business, which is strategic private capital, which is relatively nascent. We've been raising private capital through joint ventures for well over a decade, but we really started down the path towards building a funds business, a co-mingled funds business. A couple of years ago, we were really successful last year. We raised $3.25 billion of LP equity for our first close-in fund, which is going to support north of $10 billion of investment activity at cost and data centers, right? So what did that do? That gave us a checkbook, right? $10 billion checkbook to fund the hyperscale leasing that we were doing, what we had already done and what we're going to do in the future. We continue down that path on the private capital side. We continue to raise money because we think capital is paramount in a world where there is tremendous demand for capital. So we're 4.7 times levered debt to EBITDA, the mothership, but we're also using private capital to fund the development of the hyperscale data center capacity. So we think as long as we have capital and we can sign leases, so we have powered land that we can sign into new development, those are the pieces that are going to de-risk the future growth. So sign lease, raise capital, and lease, raise capital.

And are there specific indicators that digital realty sees? And I had lunch with a private data center company a few weeks ago, and what they said is that, you know, they can see through their own monitoring that today versus a couple years ago when they deliver capacity to a customer that, you know, usage, however you want to qualify it, goes almost 100% overnight, whereas before it would scale slowly. So that gives them confidence in the durability of demand. You know, customers are asking for 100% of contract capacity on day one today, where in the past, maybe they would have scaled into that capacity over a number of years. So that company provided a number of examples of what they are seeing internally through their own systems and their contracts that give them confidence. Do you have similar examples in digital realty that have increased confidence?

So, a similar anecdote along those lines, and this is just pretty consistent, which is, you know, we consistently hear, you know, from our customers who we're building data centers for, you know, as we're signing, you know, before we sign leases, as we sign leases, we know that time to power is paramount today. And so that happens when we're marketing a piece of, you know, a potential property or data center, you know, that would be a development. And that happens, you know, when we're underway, we're already developing it. They're looking for us to hand off the rooms or the data halls as fast as we can. Some are even looking for us to accelerate it, right, meaning add resources. We want, you know, an extra crew in there. We want to be commissioning at the same time these folks are fitting out, you know, the PDUs. So we want double the workers in the room. And we've seen that in our data centers, you know, as we as we've even been touring them as we're doing fit outs. We see how active the construction is. And so it's just a function of this time to power that we're seeing in this current environment.

And a lot of that is obviously AI oriented. And I want to talk about the contracts here in a second. But you just mentioned kind of labor and the workers in a room and maybe think back to Nareet in December. And I think I met with you and Matt and I kind of last question I asked was, you know, what's the biggest risk or thing concerning you in 2026? And the answer was labor. And at that time, maybe it wasn't as wasn't as obvious how tight labor was becoming in data certain development. You know, today, I think everyone is very, it's very aware of that. What is digital realty doing to solve the labor shortage, specifically, you know, master electricians and plumbers? How do you address that relative to peers?

So, look, I mean, there's a couple of different things that we're doing. One, we're building in a lot of our existing markets and in certain locations you've been to digital dollars for example yep this is a site that's been you know we took down the site in 2018 it's essentially been under construction for you know five or six years so it could because it's a gigawatt site with a sort of a ten-year bill plan right so there you know when you pull on to that site You know, one GC's construction office is on the right, the other GC's construction office is sitting on the left, and they have consistent work on that site, these GCs, right? Two different GCs, so diversity, where you're essentially feeding the beast and handing them work somewhat consistently. So keeping those crews active, you know, that's a big piece of it. So part of building the relationship, building the track record. sort of multiply that by, you know, what we're doing across our development life cycle or across our footprint, right? We're doing this in 30, 40 markets globally and have been for, you know, some time. And that's helpful to the overall sort of, you know, being able to bring resources to bear where we need them, when we need them, we get pretty good priorities. So that's been helpful. But I think you're also asking, you know, what are you actually doing to sort of, you know, build up the workforce and to make sure that, you know, we have the people we need. And there are lots of things that we're doing, you know, from our, you know, human resources department, you know, from our ops department, you know, across, you know, sort of all markets and all regions to continue to sort of bring additional people into the data center workforce. So, you know, our internships are up dramatically. The number of folks that we're bringing in, you know, new from colleges into the data center are up significantly. So interns converting into new hires. And we're adding people onto the platform at a pretty rapid pace as well. If you look at our job site, we've got quite a bit of hiring going on, and this has been going on for as long as I've been here, which is roughly four and a half years. So we're staffing up pretty significantly.

And there are a lot of parts to that question. I'll come back to it later. There's obviously kind of labor cost component. There's modular as part of your build process to address it. But I wanted to go back to development yield, which I mentioned a few minutes ago, because the investable data center universe has expanded tremendously in the past 12 months, which is great, right? You know, brings more eyeballs to digital realty, but, you know, I think it also creates greater need for differentiation, right, across the space, at least investors differentiating between the different operators. And in one metric where I do see, you know, differentiation is development yield, right? And I think that digital realty talks about targeting unlevered development yields of like 8% to 10%, let's say. That's probably about the right range. You and others talk about the same thing. Some of the more transitional data providers talk about, you know, unlevered yields of low to mid teams, right? But I think there are differences beneath the surface here as well that I want you to go into for maybe why you're targeting a lower development yield. And that is maybe ability to control for risk, where maybe some companies are taking on more development risk, going back to the cost per megawatt, or even the cost of capital might be different or more risk in where it comes in versus projected. So, you know, why is digital realty able to accept lower development yield? And I guess in your contract, how do you control for those risks, right, to have certainty?

Yeah. So it's a good, I appreciate the question. I think the context of it comes, you know, relative to maybe some of the smaller or nascent hyperscale developers who are out there. maybe have a little bit of a less, a smaller portfolio or track record. Yes, not same scale. Just a little bit of a different story. We have, we target 10 plus percent development yields. We have $20 billion under construction today and 11.5% expected initial cash yield. Um, when we talk to our, and, and, and sort of compare versus our large private peers, uh, who alongside us, we tend to dominate the third party hyperscale data center provider market. Um, I think we're pretty consistent with those folks and maybe even probably get a premium relative to, and, and part of that is because they are leveraged. they're using significantly more leverage than we are. So their levered returns are higher, but they're using, you know, 75% to 95% project level. And it might be levered 12 to 15 times. Correct. Yeah. So, you know, so that's sort of how we see the landscape. When we see some of these other numbers that are being quoted, you know, I think it's really incumbent upon, you know, the investor and analysts like yourself to look at, you know, to compare apples and apples, make sure you're comparing apples and apples. So are those developments, you know, and are those yields on a gap basis? Meaning, are we looking at the average NOI over the life of the lease? Or are you looking at initial stabilized cash, which is the number that we give you? So the number would be, you know, 20% higher or so if you were using a gap yield, you know, So maybe your 11 and a half would be 14, right? Or, you know, what's embedded in the underlying cost that digital realty provides versus some of these other folks, right? Are they including land? Do their data centers have generators or redundancy? Are they including contingency in their costs and or losses till stabilization, right? some of the things that we embed in our cost, which we would say we have a fully loaded cost estimate that we're projecting yield on. So I think there are differences. So I think in general, we command a premium, and I'll tell you why, in the marketplace. Number one, we have somewhat uniquely low leverage for a hyperscale data center provider. Number two, we're with that leveraged with that balance sheet and with our diverse sources of capital, we have the ability to have patience, right? In many times, we've already procured the capacity, including not only the land, but also the power. We've signed an ESA, right, on our own credit or using our own balance sheet. And we don't necessarily need to go out and get financing, right? Most of our financing, then most of it, we're capitalizing it at the corporate level through our revolver or cash on hand or equity, et cetera. So we don't need to take a tenant lease and then go get it financed or bring it to a power provider to get an ESA signed. So I think we were able to have a little bit more patience. And for that, we're able to command a premium. But it depends who you're comparing us to, I think, to some extent. Sure.

And better than that question is actually a compliment as well that, you know, I think you do a better job of controlling for development yield spread as well. Right. So, you know, you can target the 9-10 percent because you have greater certainty in your cost of development. Right.

Correct.

So I'd love to hear more detail in how you do that. But I think the devil really isn't the details now when we're thinking about contracts and specifically how they how they are written and how data center developers protect themselves, whether it's upside in development cost or, you know, other other factors just to ensure some certainty around the development spread.

So can you is that something you can address, Jordan? um i you know i think i think generally we're we're controlling cost rate we're underwriting deals right where we go into you know we buy land we try and have a low basis um we um you know we from a procurement perspective you know well that we have had a vendor managed inventory program you know for well over a decade right so we've had you know multiple iterations of you know Supply chain issues over the course that we've seen over the last two decades, really, that experience has brought us to evolve our supply chain team and procurement process to really make sure that we have inventory or capacity available of this equipment that's needed to bring these developments to bear at a good or well-negotiated price. Right. So we have very good relationships with our largest vendors and we're buying at scale right across, you know, the the the equipment stack. Well, so that's that's obviously pretty helpful. You know, similar to what I was describing on the balance sheet side, that construct, you know, taking equipment into inventory is not necessarily something you see on the private side as much. And so, you know, that's also beneficial. And then I would say, you know, we just have to have, you know, line of sight to capital, which I talked about earlier around the strategic private capital side. So we're locking in. We know what our, you know, cost of capital is. And at the same time, you know, you have to, you know, we have a robust global design engineering construction team who's, you know, accustomed to, you know, sort of wash, rinse, repeat, you know, in terms of, you know, standardized design, our process, and, you know, shopping, you know, our developments to our GCs and getting a GMP from these GCs and thereby locking in the cost and locking in the spread.

So I haven't even gotten to leasing yet. I'm surprised it's taking me so long. You talked earlier about the zero to one and the greater than one. It's normally question number one or two during these sessions. um i want to start with zero to one first though because i've also heard in conversations with public and private data center operators that they are seeing not just increased demand from you know say hyperscalers or ai companies but enterprise is now deploying ai and i think digital realty spoke about this in recent quarters as well but there's been a real uptick from what I'm hearing, presumably they'll continue to drive the zero to one activity. So I'd like to hear what digital realty is seeing from enterprise demand and how much of that is related to AI inference.

So it's a very relevant question. When we speak to our core pillars of growth, the first pillar is really the zero to one plus interconnection growth, which is the enterprise and, you know, colo.

And that's a sticky, that's a consistent quarter after quarter.

Steady, Eddie, land and expand type of business. We've set a target of sort of doubling our production a few years ago. You know, within this business, we were doing two years ago, 50 million a quarter of zero to one plus interconnection leasing this past quarter, which happened to be another record, you know, four of the last five quarters have been records. So we put up $108 million of aggregate leasing in the zero-to-one plus interconnection leasing. You and I are doing this long enough to remember when $100 million was the total leasing bogey for digital realty, and probably even before that, when the numbers were even lower. But so we did $108 million of zero-to-one plus interconnection leasing this quarter. um so not only was that a record but we also had a record level of um ai related leasing or workloads embedded within that so it was north of 21 so that's generally our enterprise segment enterprise business so we saw you know a significant uptick there so what's notable about that is that's probably double uh the pace or the percentage of the total so not only is the you know, the leasing is up 28% year over year in the second quarter, but the percentage is also almost doubled.

And the release spread hasn't been talked about yet, which is also significantly above expectations coming into the quarter.

The releasing spreads, yes, they were. On the zero to one side, as well as across the overall portfolio. So what's interesting about releasing spreads, you're right, they were 25% in the quarter, which was almost anomalous type level. relative to what we've been doing or relative to the sort of the, I don't know, seven, eight percent guide we gave for the year at the outset of the year. Now we're expecting to do 10 for the year. When you split out that leasing, we did 5.2 percent on the zero to one side. Historically, right, the Steady Eddie business, as you described, historically, that's a two, three, four percent increaser type business. We did 5.2. So we're definitely above the high end of the range. And we are seeing upward pressure on that side of the business. And a lot of that is being driven by reduced availability and increased or steady demand. So that's on the zero to one side. We saw a very big number on the greater than a megawatt releasing spreads. And those were 67%. And those were driven by a handful of leases in APAC that were up for renewal.

I get this question frequently, and it's going to sound like a knock, but it's not. The question I get is, why isn't growth in the industry, not digital realty, why isn't growth in the industry higher if occupancy is so high or supply is so tight? And that goes back to releasing spreads that you're right this past quarter. I mean, they were there are tremendous levels, but, you know, you've been averaging kind of that high single digit level. And that was the expectation, I think, for for the industry. So why shouldn't releasing spreads remain at, you know, teens or 20 percent if you're at 90 percent occupancy? Right. It's a seller's market. Yep. Why accept anything less than 15, 20 percent release? We'll have to say, you know, like it goes somewhere else. So why shouldn't they remain at that level?

So releasing spreads are like, you know, FOMC policy. They tend to have like long and variable lags. So the increases tend to look like this, right? They're sort of, you know, gradually higher as the market has tightened, as fundamentals have tightened and demand has increased and outweighed new supply or the ability to bring new supply to bear. We've seen releasing spreads March higher, but this quarter, it's higher with upside volatility. So it's been steadily higher, but this quarter was plus 25% on a path towards 10 for the year. So we do expect to see quarters where we're going to have meaningful upside volatility. And that's just along this path of tightening of overall fundamentals. So when we look at, you didn't necessarily ask this question, but if you look at our renewal schedule. I was actually getting in there because you do lay out the rates in your renewals. That's correct. So the real upside rate, so the zero to one business, which is 40% of our rent roughly, right, tends to be a more steady eddy, right? That you're going to see 5%, you know, 2% to 5% increases each quarter. But the greater than a megawatt business and the hyperscale business tends to be, you know, a more volatile business. There are longer term leases. And so whatever we're renewing today was probably signed 10 years ago or 7 to 10 years ago.

Which was a down cycle.

Which was a down cycle. In pricing. Exactly. So when you look at our renewal schedule today through, let's say, 2032, That's a random number, but about 40% of our hyperscale rents are rolling between today and 2032.

Yeah.

That's 40% of the book. The rates are range from expiring rates range from like about $134 at the low end up to as high as 160 bucks, but average really in that 140 range. And we're signing new leases, you know, at $160 to $220 in that bucket. So there's a meaningful upside opportunity, you know, between now and really the next five or six years as we see it, if conditions continue to remain as they are.

And so that could provide upside even to projected growth. And you don't have a point estimate for growth, right? I'm just saying it could provide upside to that low double digit FFO per share growth.

Correct.

Okay. So something we haven't talked about yet is just the capital recycling, right? So part of the strategy, I believe, at Digital Realty last few years is also to maybe move some of the fully stabilized assets off balance sheet. You've had JVs and things that allowed you to recycle that capital, right? And put it to higher and better higher and better use um so number one want to hear if that continuously part of the financing strategy but then a couple months ago i might begin my timing not exactly right but you know you took full control of an asset that was that was jointly that was jointly owned right um blackstone was the was the also like the co-owner and you know i got a lot of questions around that transaction because it seemed like a bit of reversing course from maybe recycling assets, you know, and what the catalyst was, if that was, if there was a put option in that agreement or, you know, what led to it. So kind of a broad question around capital recycling, but then also the catalyst for the acquisition of the asset.

Okay. So I'll take them separate because they're somewhat discreet. So a few years ago when Andy took over as CEO, So, you know, he laid out his sort of key strategic priorities, the third of which was bolstering and diversifying our sources of capital. And that meant sort of reducing our leverage, but also availing the company of meaningful incremental capital sources, institutional LPs, retail investors, et cetera, largely through the strategic private capital business, but also through joint ventures. We did an $8 billion joint venture with our partners at Blackstone, which is the initial phases of which have turned out to be very successful, and I'll get to in a second. Through our strategic private capital business, we see an opportunity to capitalize the super capital intensive hyperscale side of the business. That business is growing very, very quickly. The size of those developments, they used to be, you know, 30, 40, 50 megawatt developments, and now they're multiple hundreds and even gigawatt type developments that can cost as much as, you know, I mean, a gigawatt of capacity could cost $15 billion, right? Right. So how do you capitalize that and then maintain this product mix that we've enjoyed, that we've targeted? Right. So we're 40 percent zero to one plus interconnection and 60 percent hyperscale, which we like very much. We like the growth angle of this and, you know, of the zero to one plus interconnection. And we very much love, you know, the credit and the growth profile of the hyperscale as well. And we believe they belong together. And we like the diversity that comes from both. We don't want to be 95% one versus the other, which is why we've gone in the direction of this strategic private capital. So we will continue to use private capital to fund the hyperscale side of our business. Coming back to the Blackstone transaction, in December of 23, we signed up this seven, which ultimately became an $8 billion JV with Blackstone to develop hyperscale data centers. We made quick work of a handful of properties. We signed a handful of leases. We started developing them and, you know, got to the point, got to a point earlier this year, really a few months ago, where there was an opportunity to recapitalize these out of the joint venture. So we and our partner opportunistically shook hands and made a deal. We bought in the remaining 64% interest that they owned in these three assets, cost us about $5 billion at just over a 6.5% cap rate for what we viewed as three of the best brand new data centers on the planet. We thought that was a very good deal for AA-rated credit with 15-year leases, and we're happy to own those on balance sheet. Longer term, those also can become fantastic fodder and inventory for our strategic private capital business. So they weren't ever going to sit in the Blackstone JV permanently, right, because of the nature of that JV was a development JV. You know, we needed funding at the time to build those. And, you know, what we did in late June was we recapitalized the assets that had been essentially fully leased and were well underway in terms of development and or completed. We recapitalized those and we will continue. You'll continue to see activity like that. That's just really movement before you get to the permanent financing.

So related to that question, I think I asked that narrator maybe later as well. So kind of the process of the vehicle then for recycling those assets, will that continue to be through the JVs or the JVs so you can collect the management fee? or, you know, there are some other avenues today, like some like blind pools looking to acquire fully stabilized assets. You know, could that be a path for raising capital from selling some assets like the recently acquired?

It could be. I think we will look to use private capital to be involved in the permanent financing ourselves. So we would rather, you know, hold onto these assets in perpetuity with our customers on our campuses, the assets that we built and that we operate, right? We'd rather hold those long-term and invite investor partners in to capitalize, you know, some portion of those assets.

And the narrative has always been that we like collecting the management fee too, right?

That's always been part of the story. It helps.

Yeah, it helps. Can we talk politics for a few minutes?

For sure. NEMBYism.

So every day I turn on CMBC, I look up during my work hours and they talk about data centers and moratoriums and executive orders three or four times a day, right? So it's obviously topical. It's top of mind. The National Republican Committee, whatever, put out a memo a few weeks ago, specifically mentioning the Ohio gubernatorial race as a key indicator for nationwide backlash. So both parties pay attention. It's bipartisan. I'd love to hear Digital Realty's view on, you know, these moratoriums or, you know, executive orders, the risk that it poses to your development schedule. And if there is a company line on, you know, if you believe that this is going to dissipate or be reduced post November.

So, I mean, it's a great question. Obviously, we're seeing the same headlines and the same media and receiving the same emails and questions, uh, that you are. So, uh, you know, everybody is familiar with data centers these days. They're all the rage. Um, two years ago, nobody knew what a data center was besides me and you. Um, so, um, there, there, um, there, there's obviously been quite a bit of activism, uh, around this um it's you know part and parcel with the growth in ai and um so so ai has come along and come on the scene very aggressively and there's been lots of different narratives around that and i think you know data centers for better or worse have become you know the physical manifestation of the of the ire for ai and potential job loss and you know uh fear related to ai and and what the unknown is around it. So there's absolutely some of that. Those have been correlated. And there have been, you know, there's been broad narratives. It's undoubtedly become harder to build data centers. Part of that is, you know, there's been a big acceleration in data center construction. We are doing, you know, despite the fact that it's become more difficult, we have $20 billion of data center construction underway today versus $10 billion six months ago or at the end to 2025. So we've doubled the amount that's underway. So does it all get completed on time?

That's our track record.

Okay. In the future, you know, we sure hope so. You know, that's what we've committed to do. So we'll have to see what happens. I can't speak for other players in the market, but you know, that's obviously the goal. In experiences I was describing earlier, our customers are looking for this capacity earlier. Sometimes we're actually delivering it early. It may cost a little extra, and they're paying for it, but we've done that too.

But are there specific, and I don't want to rush you, but we're a little bit short on time. Are there specific regions or developments that you see most at risk in the political pushback? Anything to call out just to give an investor some awareness so there's not a surprise?

So in terms of what you've seen in terms of moratorium or pauses to date, we don't have a lot of development. We don't have any new development exposure in places like New York or Pennsylvania. So we haven't had a lot of exposure there. There was a temporary moratorium put in place in Charlotte. We have three projects underway in Charlotte. They were all vested. One of them is underway, and two of them are underway, And the third is certainly buildable and approved despite the current moratorium. So there are risks and it is making it, as I said, more difficult. We feel very good about what we have underway today. There are certain markets where we've built historically, like in Northern Virginia, we're running out of available capacity in a place like Northern Virginia. We have 50 megawatts available today for lease and probably another 96 megawatt building behind it. But after that, it could be some time. And you're accustomed to seeing us sign a lot of leases in Northern Virginia. So we've moved to places like Kansas City.

Which we didn't even get to, where you recently acquired land and have greater capacity to develop now in Kansas City.

Right. So we're having to be tactical and change where we can site some of these data centers, but we're still picking our spots and we expect to continue to be able to make some progress.

Okay. Well, Jordan, thank you so much for coming out. Really appreciate it.

Thank you for having us. Really.

Thank you all. Thanks guys.