Rowan says capital needed for infrastructure, energy transition, and data centers equals all money spent since invention of oil.
“You're talking about the amount of money that's been spent since the invention of all”
Rowan says data center credit should amortize before renewal given strong near-term demand, ensuring safe cash flows for debt repayment.
“Therefore, for the next period of time based on contracts going in today, we should have very safe cash flows in which to amortize credit.”
Rowan cautions that owning data center equity does not guarantee profits despite valuable data.
“But I don't think it is a foregone conclusion that because you own a data center and you own equity in it and data is valuable that you will make money in data center equity.”
Rowan says consulting firms' 2030 energy forecasts are wildly inconsistent, resembling a scattered plot.
“And each of the good and the great consulting firms have weighed in, and it looks like a child scattered dark plot.”
Rowan warns owning data center equity is not guaranteed to be profitable despite valuable data and strong current demand.
“I don't think it is a foregone conclusion that because you own a data center and you own equity in it and data is valuable that you will make money in data center equity.”
Rowan says consulting firms' 2030 energy projections are wildly inconsistent, showing experts have no clear view on data center future.
“I have a chart on the wall in my office, which is just about energy usage in the year 2030, not that far away.”
Rowan warns that levering data center equity owners is unsafe.
“Levering those companies, given my previous comments, does not seem to be the safest thing I've ever seen.”
Rowan says consulting firms' 2030 energy forecasts are wildly scattered, showing data center equity is a fundamental bet.
“The fact is if experts looking out not all that far have no idea, we are making a fundamental bet on equity.”