Capital And Infrastructure Requirements For AI ConversionsConverting sites to support high-performance computing requires additional investment in uninterruptible power, backup generation, and enhanced cooling, raising execution complexity and funding needs.
Legal Uncertainty At ClaringtonOngoing litigation at the Clarington site creates uncertainty around when a high-performance computing tenant can complete due diligence, increasing execution risk for that conversion.
Rising Operating CostsHigher electricity expenses combined with elevated general and administrative costs tied to AI-related hiring pressured adjusted operating earnings and reduced profitability.