Agree with you that Morgans has to go with historical calculations but their indicative price of $7 is the status quo. Yes i do believe we will get to 12MW-15MW pa sales over the next 12 months-18 months. I agree with you it will ramp up but you just have to look at the size of the S2, M2, P2, S3 and M3. Why invest in buying land for gen 3 data centers if it is going to take 10 years before we consume it. At the current rate of sales 8.5MW-10MW per annum and S2 and M2 having 80MW capacity, it will take 8-10 years to fully utilise S2 and m2.
The deal sizes have to go up to 15MW p.a. to fully utilise S2 and M2 in 5 years. The interest cost on the holding the land is circa 5-6%. So over 5 years that's 25-30% of the asset value. I wouldn't be paying that premium unless i am going to use it within the next 2-3 years.
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