Earnings Call Transcript - KEEL Q1 2026

Operator, Operator

Good day, and welcome to the Keel Infrastructure First Quarter 2026 Earnings Conference Call. Please note, this call is being recorded. I would now like to turn the call over to Jennifer Drew-Bear from Keel Investor Relations. Please go ahead.

Jennifer Drew-Bear, Head of Investor Relations

Thank you, and welcome to Keel Infrastructure's First Quarter 2026 Conference Call. With me on the call today are Director and Chief Executive Officer, Ben Gagnon; and Chief Financial Officer, Jonathan Mir. Before we begin, please note this call is being webcast with an accompanying slide deck. Today's press release and our presentation can be accessed on our website under the Investors section. Turning to Slide 2. I'd like to remind everyone that certain forward-looking statements will be made during this call and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. I invite you to consult Keel's 10-Q for a complete list, which will be available on our website and the SEC website. Please note that references will be made to certain non-GAAP financial measures and therefore, may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our filed 10-Q for definitions on the aforementioned non-GAAP measures and the reconciliations to GAAP measures. Please note that all financial references are denominated in U.S. dollars, unless otherwise noted. And now turning to Slide 3. It is my pleasure to turn the call over to Ben Gagnon, member of the Keel Board of Directors and our Chief Executive Officer. Ben, please go ahead.

Benjamin Gagnon, Chief Executive Officer

Good morning, everyone, and welcome to our first quarter 2026 earnings call. Today is a meaningful day for us. This is our first earnings call presenting as Keel Infrastructure. And for those tracking the story closely, I want to take a moment to acknowledge what that represents. Two years ago, we outlined a deliberate multiyear plan to transform this company, wind down Bitcoin, build out our team and reposition every megawatt we control towards the most significant infrastructure opportunity of our generation. That plan is now fully in motion. And since our last call just over a month ago, we have also completed our redomiciliation to the United States, officially rebranded as Keel Infrastructure and closed the sale of our Paso Pe site. For those of you joining us for the first time, let me give you a clear picture of who Keel Infrastructure is and what we are building. Keel Infrastructure is a North American digital infrastructure company. We own large-scale powered land sites across Pennsylvania, Quebec and Washington that we are actively developing into over 2 gigawatts of high-performance computing campuses for lease to investment-grade hyperscalers, neocloud, enterprise and government clients. The Keel name captures who and what we are. The keel is the structural backbone of a ship, unseen but essential, converting energy into forward motion. That is exactly what we do for our tenants. We enable and accelerate the data center growth that makes tomorrow's economy possible. Turning to Slide 4. Let me take a step back now and talk about why we are attracting so much attention from potential tenants and why we're set up to create tremendous value for customers. The conversation in HPC and AI infrastructure has shifted fundamentally over the past 12 months. Customers are not asking, can you build data centers? They are asking, when can you deliver power in the right location on a timeline that actually matters to my deployment schedule? And how are you ensuring you can deliver? The answer to those questions is what separates sites that get leased from sites that sit empty. Our strategy is customer-centric and is structured around solving their highest value constraints. One, short timelines to power. Our sites have secured power available starting in 2027, enabling customers to accelerate deployment relative to building out interconnections organically. In PJM, Quebec and Washington, a new large load interconnection can take between four to ten years. We have already done that work. That timeline advantage is not incremental. It is transformational for customers trying to deploy compute at scale. Two, prime locations. Panther Creek, our flagship campus, is a great example of the value our locations bring. The site sits two hours away from Philadelphia and New York in the PJM energy market, surrounded by established hyperscaler and neocloud data center infrastructure. Our other campuses follow the same principle: proximity to metro areas and surrounded by our customers' established infrastructure. These are not secondary energy markets. These are primary markets where our customers are actively trying to expand and finding that supply at this time does not exist. Three, a proven permitting strategy built on transparent stakeholder relations. While strong community engagement and support has always been a pillar of our culture at Keel, recent headlines are reinforcing just how critical this is. Our permitting team has decades of regional experience, and we proactively build genuine relationships with the communities around our sites. That approach produces results. Zoning is now complete at all three near-term sites. Land development and environmental permits are on track, including our preliminary land development approval at Sharon. Customers who have watched other developers miss permit milestones appreciate what this means for Keel's execution certainty. Four, proven delivery partners with hyperscaler-grade track records. With power, land and community support, we have the foundation in place for success. However, customer confidence ultimately comes from execution, which is why we've built a partner ecosystem designed to deliver that certainty. Working with Turner Construction, Corgan, Vertiv and T5, our customers do not need to take development execution risk on an untested team. Potential customers are looking at our construction and engineering partner roster and seeing our collaboration with best-in-class infrastructure and construction partners that have demonstrated experience delivering for hyperscalers. And five, future-proof designs. We are advancing architecture and engineering in parallel with customer conversations, which means that when a customer is ready to commit, we will be ready to easily adapt to their final specifications. We are also thinking ahead: with rapidly evolving technology, it has never been more critical to future-proof our data center development. We are thinking about our customers' needs in 2027 and beyond, not just what they need now. Customers value that. Turning to Slide 5. Our portfolio is focused on high barrier-to-entry markets in Pennsylvania, Washington and Quebec. In these markets, our ability to accelerate timelines and enable regional growth creates real value for customers. Our 2026 priority is clear: sign three leases by year-end, one at Panther Creek, one at Sharon and one at Moses Lake. We have the right power in the right places with the right timelines. And as Jonathan will walk through, we are better capitalized than at any point in this company's history with more than enough liquidity to advance all three sites through permitting and lease execution. Across all three of our near-term development sites, we are running three work streams simultaneously: finalizing permits, advancing architecture and engineering aligned with customer specifications and actively commercializing to secure highly financeable leases with investment-grade tenants. That parallel execution model is intentional. In this market, customers are making site decisions now. They are looking for partners who can show them a clear, credible path to power, and we create that visibility by working with great partners and advancing all three work streams together. So when a customer is ready to commit, we are ready to build. Now let me take you through each of our three near-term sites. Turning to Slide 6. Starting with Panther Creek, our flagship campus in Eastern Pennsylvania and the centerpiece of our near-term development plan. We have 350 megawatts of secured gross capacity with PPL under an ESA. Development is structured in phases with an expected ready-for-service date in 2027 and additional expansion capacity beyond that. Permitting is a subject I know investors track closely. So let me walk through our approach with precision. Permits fall into three broad categories: zoning, development and environmental. Full permitting requires completion across all three. Our execution strategy is built around local expertise and proactive engagement, planning and transparency. We have assembled a team with deep regional knowledge anchored by a head of permitting with decades of Pennsylvania experience, and that local presence allows us to move efficiently through jurisdictional requirements and, just as importantly, to engage productively with the communities around these sites who are always key partners in Keel developments. On the permitting progress, zoning approvals were completed in February, including the data center ordinance approval by the Nesquehoning Borough, a meaningful community milestone. Land development and environmental permits remain in process and are on track. With zoning secured and a clear line of sight on development timelines, we are active in commercialization. To be clear, we do not need to wait nor are we waiting for every permit to negotiate leases. We give customers the visibility they need to make decisions and the certainty that they need to commit. In terms of the customer profile for the site, the scale and location of Panther Creek positions it squarely for hyperscalers and the largest neocloud operators. Two hours from New York City with eight fiber metro networks within ten miles and direct proximity to established data center clusters, this is the kind of site that gets on a short list quickly. We are in active conversations with multiple potential customers and the engagement quality has been strong. Finally, beyond the 350 megawatts of secured power at this campus, we are currently evaluating the conversion of our existing 60-megawatt ISA to firm service, which could bring total gross capacity upwards of 400 or 430 megawatts. In addition, a new load study conducted in 2025 supports potential expansion beyond 500 megawatts for the overall campus over the longer term. We will provide updates as that conversion evaluation progresses. The point is Panther Creek is a unique asset. It has the proximity and scale to service East Coast inference and training markets for years to come. Turning to Slide 7. Moving to Sharon and Western PA. We have 110 megawatts secured by an ESA with First Energy. A 30-megawatt substation is operational today with an additional 80-megawatt substation under development. Sharon received full zoning permits last month. That is a significant milestone, and it gives customers increasing confidence in our delivery timeline. Land development has been preliminarily approved and environmental permits are in progress and on track. This site is actively being commercialized with an expected ready-for-service date as early as 2027. Sharon sits within the PJM market with strong fiber infrastructure across nine metro networks within ten miles in proximity to Pittsburgh and Cleveland, two markets that are underserved relative to the East Coast. In terms of customer profile, the capacity and location makes Sharon a strong fit for a hyperscaler, neocloud operator or large enterprise customers looking to establish a position in Western PJM. We are in active conversations with multiple potential customers and the response to our permitting progress has been positive. Turning to Slide 8. Finally, Moses Lake, our 18-megawatt site in Washington State. Small but mighty, Moses Lake is located adjacent to one of the most proven data center markets in the United States, the Quincy, Washington corridor, which has been home to hyperscaler infrastructure for nearly two decades. Power availability in this region has become one of the most constrained in the country. The combination of existing cluster density and tightening power supply means that operators who need megawatts here have very limited options to grow organically. We are one of those options to establish a footprint or expand an already established operation. Moses is the only site where we made a deliberate capital decision ahead of commercialization. We purchased critical modular data center equipment in advance. That decision enables us to offer customers an accelerated deployment timeline that is not available through a traditional stick-build approach. Speed matters to our customers, and we engineered our deployment model to deliver it. Zoning in Moses is complete. Land development and environmental permits are in progress and on track, and the Bitcoin mining operations are actively being decommissioned. Like our Pennsylvania sites, Moses Lake is actively being commercialized with strong inbound interest and ongoing engagement with multiple counterparties. In terms of customer profile, the scale of the site positions it as an ideal fit for emerging neoclouds, enterprise and government customers who need fast, reliable access to the Pacific Northwest market and do not require a campus-scale commitment to do so. Faster timeline, smaller megawatt commitment, right market — that is a compelling combination. Across all three sites, we have clear line of sight to full permitting, active commercialization and tangible momentum towards signed leases in 2026. We look forward to keeping everyone updated on our progress. Turning to Slide 9. From a value creation standpoint, a signed lease is the single most important inflection point for our business. A signed lease does three things: it converts our development assets into long-term contracted cash flows; it unlocks access to low-cost nondilutive project financing; and it significantly reduces execution risk for every stakeholder in our capital structure. There is a reason we are intensely focused on getting three leases signed this year, where we expect each lease to be an event that reshapes how this company is valued. We are executing against all three simultaneously right now. The second value driver we are executing this year is to increase our secured capacity from both expansion capacity and new organic growth opportunities. The third value driver will be delivering on megawatts in 2027. We believe that these three inflection points are key drivers of value creation for our shareholders in the near term and long term. And with that, I'll turn it over to Jonathan to walk through our financial position and strategy.

Jonathan Mir, Chief Financial Officer

Thanks, Ben. Turning to Slide 10. I want to open with a simple message. We are better capitalized today than at any point in this company's history, and our liquidity position gives us something invaluable in this market, the ability to both advance and derisk our sites at the pace our customers require and to make commercial decisions from a position of strength, not necessity. As discussed during our last call, our financial strategy rests on three principles: capital allocation, capital formation and capital structure, each directly supports our ability to execute our goal of signing three leases this year. Before I walk you through our strategy in more detail, I'll briefly go over our results for the quarter. Turning to Slide 11. As a reminder, as of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs and asset balances associated with Paso Pe are treated as discontinued operations in our Q1 2026 financials. So when I refer to continuing operations, I'm speaking exclusively about our North American platform, which is the foundation of all our transition into HPC and AI infrastructure. With that, revenue for first quarter 2026 was $37 million, down 23% year-over-year. Operating loss for the quarter was $98 million, including noncash depreciation of $28 million compared to an operating loss of $35 million in Q1 2025, which included $18 million of noncash depreciation. The year-over-year change primarily reflects a $41 million loss related to change in fair value of digital assets in Q1 2026 compared to a loss of $23 million in Q1 2025. Loss from continuing operations was $128 million or $0.21 loss per basic and diluted share compared to a loss of $38 million or a $0.08 loss per basic and diluted share in Q1 2025. The changes reflect the increase in operating loss and a $22 million loss from the extinguishment of the Macquarie credit facility in Q1 2026. For the first quarter of 2026, our adjusted EBITDA was negative $17 million, down from $7 million in 2025. The difference was largely due to an increase in energy and infrastructure expenses of $15 million and an unfavorable change of $7 million in the gain or loss from the sale of digital assets. Turning to Slide 12. Now let me turn to our capital position. Since our last call, we have taken two actions that further strengthened our balance sheet. First, we closed the sale of our Paso Pe site, which brought forward roughly two to three years of estimated cash flow under current market conditions in cash and upfront. Second, we have continued to actively manage our Bitcoin holdings, selling into strength and methodically converting a volatile asset into the stable capital our development business requires. During the period beginning January 1, 2026, and ending May 8, 2026, we sold 269 Bitcoin for $20 million in proceeds as part of our previously communicated plans to sell our Bitcoin holdings in 2026. Current liquidity as of May 8, 2026, stood at approximately $533 million in cash and Bitcoin. Let me put that number into context. This fully funds the capital required to advance Panther Creek, Sharon and Moses Lake through lease execution as well as the start of construction at Moses Lake and covers our G&A through 2028. We believe this liquidity is a strategic advantage. We can continue developing at the speed our customers require while maintaining discipline and deploying capital where the returns are most compelling. Let me now walk through the three principles that guide our financial strategy. First, capital allocation. Every dollar we are deploying today is advancing our three priority sites toward lease execution. We believe it is the highest return use of capital available to us at this stage of the company's development. Second, capital formation. As I noted, we have the liquidity to reach lease execution across all three sites without the need to tap into debt or equity capital markets. That said, we will remain opportunistic if attractive opportunities arise. Once we execute leases, we would expect to transition to a project-level financing model supported by long-term contracted cash flows, enabling us to fund construction with a high proportion of nonrecourse capital while preserving flexibility at the corporate level. The institutional financing market for HPC/AI infrastructure continues to strengthen, and we believe we're well positioned to access it on favorable terms at the appropriate time. And third, capital structure. We operate with a disciplined liquidity strategy so that we can remain flexible when making commercial decisions. As I mentioned a few moments ago, we have more than adequate liquidity today to execute against our strategy without the need to tap into capital markets. That said, we'll always take the necessary steps to ensure a strong balance sheet, and we would envision having a credit line and/or an ATM in place at some point this year as we believe these are prudent tools for any public company to have available. Again, liquidity and capital strength are directly supportive of our commercial strategy.

Benjamin Gagnon, Chief Executive Officer

Thanks, Jonathan. Before we open for questions, I want to drive home a few things. This company has done what it said it would do. We said we would build a North American infrastructure platform. We built it. We said we would exit Latin American megawatts, done. We said we would redomicile to the United States and rebrand, complete. We said we would position our megawatts in the most capacity-constrained high-demand markets in North America, and this is exactly where 100% of our portfolio sits today. The case for Keel Infrastructure is direct. Power availability is the single biggest bottleneck constraining the growth of the AI economy. We control scarce deliverable power in three of the most supply-constrained markets in North America, allowing us to work alongside our customers to solve that challenge together. We have the sites, the team, the permits in progress, the partners and the balance sheet to execute, and we are executing now. Three leases signed by year-end, revenue commencing in 2027. That is the plan, and that is what we are focused on delivering. I want to close by acknowledging our fantastic team. The pace and the precision with which we have executed this transformation, the transactions, the hires, the permitting progress, the commercialization is not the result of any one decision. It is the result of hundreds of well-made decisions by a team that is fully committed to this mission. I've never had more confidence in our team and our ability to deliver. I look forward to continuing to update you on our progress. And with that, I would like to open the call to Q&A. Operator, please go ahead.

Operator, Operator

Our first question comes from Mike Grondahl with Northland.

Mike Grondahl, Analyst, Northland

Ben, maybe specifically on Sharon, you had kind of talked about hyperscaler customers, neoclouds and large enterprises. Can you talk a little bit about the pros and cons or the terms from each category and kind of what metrics you're going to use to decide on a lease?

Benjamin Gagnon, Chief Executive Officer

Thanks, Mike, and it's a great question. When you're looking at all the different available potential tenants for these sites, there's obviously going to be pros and cons across the various categories. I think broadly speaking, what you see from a hyperscaler client is probably a little bit tighter on the economics, but that's largely offset by the quality of the credit and the confidence in the long-term contract there. Neoclouds are generally paying a bit of a higher price, but they also come with a higher cost of capital. And so there's a balancing act. For us, really, it's about finding the right balance between the counterparty, the economics of the contract and the cost of capital, but not specifically trying to prefer a hyperscaler over a neocloud, but really trying to optimize across those three variables.

Mike Grondahl, Analyst, Northland

And any sense where you're leaning today?

Benjamin Gagnon, Chief Executive Officer

I don't want to get into exactly where we're going to go. But on the slides, what we did indicate for each site was the potential tenant profiles. So that should give you an indication of where we're leaning for each site because most of the site's scale is determining the kind of customer demand that we're receiving.

Mike Grondahl, Analyst, Northland

Got it. Then just lastly, how has demand changed over the last 90 days?

Benjamin Gagnon, Chief Executive Officer

I don't think it has changed, Mike. It's still present. It's still incredibly strong. There are some emerging questions around global investments in HPC and AI versus the U.S. given recent geopolitical events, but I don't think we've seen a real change in demand. It's more or less a reinforcement of what was already there before the conflict, a preference to invest in the United States. Now we're seeing just a much stronger reinforcement of that. But I think demand is as strong as it was 90 or 120 days ago.

Operator, Operator

Our next question comes from Brett Knoblauch with Cantor Fitzgerald.

Brett Knoblauch, Analyst, Cantor Fitzgerald

On Panther Creek, which seems to be the largest initial site for you guys or the flagship site. And I know the slide deck: we're kind of waiting on environmental and land. Could you maybe just help with the timeline on that? Is that still a mid-summer event? Could it happen sooner? And is that absolutely necessary, call it, to happen pre-lease execution?

Benjamin Gagnon, Chief Executive Officer

So it's a great question, Brett. We're still tracking on the exact same timeline that we indicated on the last Q4 call a couple of weeks ago, which is kind of a mid- to late-summer timeframe. This is what we're lining up for right now. What we want to make clear in terms of the process is lease negotiations and permitting are a parallel process. It's not as if you need those in hand to begin a successful lease negotiation, but you have to be able to show a very confident and credible pathway with high confidence that you'll achieve it on the timelines you're describing to be successful in those lease negotiations. And we achieved that earlier this year, which is why we've been active in the commercialization strategy across all three of those different sites. So we shouldn't expect that the timing of the permits is going to cause a slowdown in terms of lease execution. Those are simultaneous, and we would be looking to complete the permits before executing the final lease, but the negotiation and the permit applications continue in parallel.

Brett Knoblauch, Analyst, Cantor Fitzgerald

Awesome. And then maybe just as a follow-up, I think what we're hearing across most of the space is that kind of capacity for 2026 is sold out. So anything with a ready-for-service date in 2027 should be relatively attractive. And then you guys are also designing — at least sharing for Vera Rubin. Are you seeing any change in conversation given it's a Vera Rubin kind of design relative to maybe other sites that might be maybe Blackwell? I'm just curious if you're seeing an uptick in demand for what would be a Vera Rubin site?

Benjamin Gagnon, Chief Executive Officer

The Vera Rubin technology is very different than Blackwell. The engineering requirements are a magnitude more complex and sophisticated than the Blackwells. So the conversations are relatively different. In terms of timing, nobody has actually received their first deliveries of Vera Rubin yet. So the conversation with Vera Rubin is much more about planning for the future and trying to accommodate the equipment that is just coming off the first lines of production right now, whereas Blackwell is more of a known technology and a known engineering standpoint. I would say from a demand perspective, we see more interest for Vera Rubin aligned with our timelines for 2027. But the biggest difference in the conversation is the real-time engineering requirements from NVIDIA for the Vera Rubin technology stack because this is just starting to emerge in the market now.

Operator, Operator

Our next question comes from Bill Papanastasiou with Chardan Capital Markets.

Bill Papanastasiou, Analyst, Chardan Capital Markets

Previously, I believe management mentioned that timelines for clearing permitting would be mid- to late-summer. I'm not sure if this was mentioned on the call, but how is that trending? And has that timeline shifted at all now that you have zoning at all three sites?

Benjamin Gagnon, Chief Executive Officer

Bill, thanks for the question. Yes, we mentioned that on the Q4 call. Since we've had the Q4 call, we've cleared a few more permits, including zoning and preliminary land development at Sharon. So everything is tracking according to our plan. We still have high confidence on a mid- to late-summer timeframe across those three sites. Permitting, obviously, can go a little bit faster or slower, but we've got high confidence on those timelines.

Bill Papanastasiou, Analyst, Chardan Capital Markets

And then can you just speak to your Bitcoin mining operations, where steady state today? I believe in Q4, it was around 14 exahash. How should we think about that throughout the remainder of the year?

Benjamin Gagnon, Chief Executive Officer

Yes, it's still around 14 exahash, and it should continue to trickle downward over time. Right now, the Washington site is being decommissioned. So that's our first U.S. site where we've actively decommissioned Bitcoin mining before it was all coming out of Latin America. As we break ground and work on development across Panther Creek and Sharon, we will also be decommissioning Bitcoin mining at those sites. But we're going to try and line up the Bitcoin mining decommissioning as best as possible with the construction schedule and mining economics so that we can try and optimize and maximize the capture of the value and the cash flows there. We'll continue to provide updates to the market as we move forward throughout the year, Bill. But you should expect it to trickle down from 14 to probably somewhere around five exahash around the end of the year.

Operator, Operator

Our next question comes from Michael Donovan with Compass Point.

Michael Donovan, Analyst, Compass Point

On Moses Lake, the slide deck states there is a secured option to acquire neighboring property with additional capacity. Can you size the potential expansion opportunity beyond the current 18 megawatts? And what needs to happen for that option to move forward?

Benjamin Gagnon, Chief Executive Officer

We have a secured option for an additional ten megawatts in the area. Nothing really needs to happen other than our desire to exercise the option. The power is there, it's secure, the land is there, the due diligence is done. Really, it's just about us wanting to exercise the option. When you go to market for these sites, one of the strategic features to have in these conversations is not only secured power today, but the ability to expand that infrastructure and capacity over time. Securing the option as of right now is a great commercial benefit for us in the commercialization strategy that gives us and the customers potential to continue to scale up in that region.

Michael Donovan, Analyst, Compass Point

Also on Washington, can you unpack the scope of the May 3 purchase commitment and clarify whether all major long-lead equipment has been acquired?

Benjamin Gagnon, Chief Executive Officer

We've secured basically everything that we need for the site with regards to the modular infrastructure from Vertiv, the transformers and the backup generators. The last thing that we really needed was the backup generators, which is the last thing that we had secured. So Moses Lake has got all of its equipment that it needs for its development. There are a few odds and ends, but all of the key critical pieces have been secured.

Operator, Operator

Our next question comes from Martin Toner with ATB Cormark.

Martin Toner, Analyst, ATB Cormark

Congrats on your progress. SG&A picked up this quarter. Can you maybe talk to what we can expect for the rest of the year? And just in general, maybe what investment that increase in SG&A represents?

Jonathan Mir, Chief Financial Officer

Martin, it's Jonathan. How are you? Could you repeat the back half of your question? I did hear you ask about expectations for SG&A for the remainder of the year. I missed a bit at the end.

Martin Toner, Analyst, ATB Cormark

Yes. Just talk a little bit about what investment that increase in SG&A represents?

Jonathan Mir, Chief Financial Officer

Thank you. We'd expect our run-rate cash SG&A to run about $25 million a quarter or $100 million a year, plus or minus. At the SG&A level, we've got a number of offsetting factors related on the one hand to the wind down of elements of the Bitcoin business and then on the other hand, adding specialized expertise in respect of the HPC/AI data center build-out.

Martin Toner, Analyst, ATB Cormark

Perfect. Can you talk a little bit about Quebec...

Benjamin Gagnon, Chief Executive Officer

So we continue to make good progress with our 96-megawatt campus in Sherbrooke. We're hoping to have an update on this on our Q2 call, which would include our plans for consolidating our three Bitcoin mining sites in Sherbrooke — our 48-megawatt bunker site as well as our 30- and 18-megawatt sites — to a single 96-megawatt site in the same town. We're continuing to progress those conversations with the city of Sherbrooke and Hydro-Sherbrooke, and we have high confidence that we're going to be able to get all of those i's dotted and t's crossed to wrap this up and to be able to provide our plans to the public. We're getting quite excited about our plans in Sherbrooke. We think that it represents one of the few permitted HPC/AI campuses in Quebec that will be under construction in the near term.

Operator, Operator

Our next question comes from Brian Dobson with Clear Street.

Brian Dobson, Analyst, Clear Street

So thanks for the positive commentary on the demand environment. Could you give a little bit of color on what you see as the biggest gating factors for your growth over the next few years? And if there are any long lead-time obstacles that you're trying to overcome?

Benjamin Gagnon, Chief Executive Officer

I think the biggest gating factor is bandwidth, to be honest. We've built a great team and we're continuing to build a great team, but we have two gigawatts worth of development pipeline to execute against. There's a tremendous amount of technical detail and complexity associated with these projects. We've done a great job increasing our bandwidth by adding more people, selling off noncore assets, and completing structural tasks that simplify the business, such as redomiciling to the United States and completing our pivot out of Latin America. All of that helps. We've also had a lot of success with early integrations of AI into people's workflows and workstreams, which is helping productivity as well. But the biggest constraint is bandwidth. That's something we're continuing to improve upon as we add people to the team and add great partners like Turner Construction and Corgan on A&E and others. I think we've got a very good pathway to address those and execute across all of our campuses.

Operator, Operator

Our next question comes from Mike Colonnese with H.C. Wainwright & Company.

Michael Colonnese, Analyst, H.C. Wainwright & Company

If you could just talk about the pricing dynamics that you're seeing for negotiations with prospective tenants here. Is it fair to assume that Keel could secure better economics on a lease than what we've seen in the marketplace recently, specifically given the location of your sites in PJM and Washington and paired with your data center design, which sounds like it's aiming to support the Vera Rubin deployments?

Benjamin Gagnon, Chief Executive Officer

It's one of the questions we're paying very close attention to, and it's one of the things we've been talking about for some time: we believe that the economics are continuing to improve as scarcity worsens and demand accelerates. I don't want to get locked into any fixed numbers with lease economics, but the broad trend is quite clear. I don't think it's changed or slowed down. Market demand for this growth is very high. We're seeing hyperscalers reconfirm their commitments, in some cases increase them, and in some cases make public statements on the opportunity cost of missed revenue for not having that compute in place. So we think this is a trend that will continue for years. We look forward to taking advantage of our energy position in an increasingly energy-constrained market.

Michael Colonnese, Analyst, H.C. Wainwright & Company

Very helpful, Ben. If I could just squeeze one more in: on the CapEx side, as you've gotten further along in your basis of design with your various campuses, has your capital requirements or CapEx deployment needs changed at all since your initial framework when it comes to deploying these data centers?

Jonathan Mir, Chief Financial Officer

It's Jonathan. Generally speaking, no. Our views on CapEx deployment have not changed since our initial framework. We're comfortable with our current plans. People always ask about guidance on this topic, and we'd say the figure generally used as a rule of thumb throughout the industry should be fine as a practical matter.

Operator, Operator

Our next question comes from Nick Giles with B. Riley Securities.

Nick Giles, Analyst, B. Riley Securities

Today's discussion has centered on your first three sites, but I wanted to ask about Scrubgrass. Can you give us a sense for progress there specifically? And what do you see as the key milestones for that site over the next six to twelve months?

Benjamin Gagnon, Chief Executive Officer

Thanks, Nick. I share your enthusiasm for Scrubgrass. I find Scrubgrass to be a really exciting project for us. It's likely going to be the crown jewel of the company in the coming years, but there's still a lot of work to execute before it can achieve that status. This is going to be one of the largest data center campuses in Pennsylvania, but we've got to get power secured from a couple of different angles and it's going to take more time. On the grid connection side, the detailed load study is continuing. We should expect to have an indication of the results around the very end of the year in Q4. We're working on securing the energy pipeline lateral construction and the energy contracts as well as agreements with either an IPP or a similar firm to deploy natural gas turbines on site, and we are even evaluating options to do that ourselves. It's a little early to say exactly what's going to happen or when, but we do share your enthusiasm. We think it's one of the more transformative value creation opportunities for the business and for shareholders. It is a big focus for management this year to secure the megawatts at Scrubgrass and pull them out of the expansion bucket into the secured bucket. That would more than double our secured capacity and would give us a powerful giga campus in Pennsylvania. We've seen that giga campuses outside of Texas are fiercely contested; those sites have competitive, tension-filled commercialization processes. We look forward to taking full advantage of that in a capacity-constrained market. The detailed load study covers 750 megawatts.

Operator, Operator

I'm showing no further questions at this time. I'd like to turn the call over to Ben Gagnon, CEO, for closing remarks.

Benjamin Gagnon, Chief Executive Officer

Thank you, everyone, for attending our Q1 call. At this time, we'll go ahead and end the call, but we'll continue to provide updates for you on our website and through the normal investor channels. Thank you.

Operator, Operator

Thank you for your participation. You may now disconnect. Everyone, have a great day.