Excellent breakdown of the power bottleneck dynamics! Your point about treating ARR as a speed indicator rather than a predictive measure really clarifies why so many NeoCloud valuations feel disconected from actua cash generation. The 47 GW shortage you cite essentially means the companies with secured power contracts today are sitting on what amounts to call optiosn on future compute capacity, which fundamentaly shifts how we should think about their balance sheet strength versus their reported revenue metrics.
Thanks a lot, glad you found it useful. You’re right, when you invest in these companies you have to deal with a whole set of metrics that simply don’t exist in other sectors. They really do have massive monetization potential around energy, but they also need huge capital for CapEx, and on top of that they still have to buy GPUs
Excellent breakdown of the power bottleneck dynamics! Your point about treating ARR as a speed indicator rather than a predictive measure really clarifies why so many NeoCloud valuations feel disconected from actua cash generation. The 47 GW shortage you cite essentially means the companies with secured power contracts today are sitting on what amounts to call optiosn on future compute capacity, which fundamentaly shifts how we should think about their balance sheet strength versus their reported revenue metrics.
Thanks a lot, glad you found it useful. You’re right, when you invest in these companies you have to deal with a whole set of metrics that simply don’t exist in other sectors. They really do have massive monetization potential around energy, but they also need huge capital for CapEx, and on top of that they still have to buy GPUs