In a recent article, Bisnow highlighted comments Member Jeffrey Moerdler made at the DICE Capital Markets event in July on neoclouds, cloud providers that offer access to GPU computing crucial for AI. The article notes that while the sector is experiencing rapid revenue growth, it also presents risks for data center firms, leading many operators to require significant up-front collateral or a third-party guarantor, as well as performance guarantees and tenant creditworthiness assessments.
"I have a serious concern about those GPU-as-a-service companies," Jeff says. "I'm worried that there's a mismatch between their leasing space on a 10 to 15-year lease, but their customer-facing agreements range from by the hour to by the week to by the year."
Source