Data Center Energy Consumption - By 2030, global data centers are estimated to consume power equivalent to Japan's entire economy [1] - This represents a doubling of current data center power consumption [1] Technology & Efficiency - The industry questions whether technology-driven efficiencies can offset the growing demand for power in data centers [1] Event Announcement - The Bloomberg New Economy Forum will be held in Singapore from November 19-21 [1]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue reached $1.5 billion, landing at the high end of expectations, with a gross margin of 17.2%, exceeding guidance primarily due to strong contributions from energy storage shipments [6][22] - Net income attributable to shareholders was $9 million, resulting in a net loss of $0.07 per diluted share due to the impact of preferred shareholder adjustments [7][22] - Operating expenses normalized to $222 million, reflecting lower shipping costs and ongoing internal cost reductions [22] Business Line Data and Key Metrics Changes - Solar module shipments totaled 5.1 gigawatts, in line with expectations, while energy storage shipments reached a record 2.7 gigawatt-hours [5][11] - CSI Solar reported revenue of $1.4 billion, with a gross margin decrease of 730 basis points to 15%, driven by margin changes in both solar and storage businesses [11] - Recurrent Energy generated $102 million in revenue with a gross margin of 46.1%, primarily driven by profitable project sales [16] Market Data and Key Metrics Changes - The contracted backlog for energy storage solutions increased to $3.1 billion, supported by newly signed projects in North America and Europe [12] - The company is expanding its residential energy storage segment, which is on track to become profitable in 2025, with strong growth in Japan, Italy, and the U.S. [9][14] Company Strategy and Development Direction - The company is focusing on U.S. manufacturing investments, with plans for solar cell production in Indiana and lithium battery production in Kentucky expected to start in 2026 [8] - The strategy includes increasing project ownership sales in 2026 to enhance cash recycling and reduce leverage, while maintaining a focus on profitable solar markets and driving growth in the storage business [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the solar industry is at an inflection point, with stabilizing market conditions following a downturn, presenting both challenges and opportunities [7] - The rise of AI-driven data centers is creating unprecedented global electricity demand, with solar plus storage being highlighted as a flexible and cost-effective solution [9] Other Important Information - The company closed the quarter with total assets of $15.2 billion and a cash position of $2.2 billion, while total debt increased to $6.4 billion [23][24] - Capital expenditures totaled $265 million, primarily related to U.S. manufacturing investments and existing capacity expansions [24] Q&A Session Summary Question: Can you talk about the strategy of timing and leverage for project sales? - Management indicated that they have enough operational projects to sell and do not need to sell early, aiming to maximize value from project development and financing [29][30] Question: Can you discuss the maturity of relationships with suppliers for U.S. manufacturing? - Management stated that there are many suppliers outside China, and they believe they can meet domestic content requirements for U.S. manufacturing by 2026 [32][33] Question: How do you bridge the gross margin gap reported by your A-share subsidiary? - Management clarified that the gross margin for the project business supported overall margins, with solar manufacturing margins being lower [36][42] Question: What is the anticipated volume of asset sales in 2026? - Management noted that while they will continue to build their IPP portfolio, they will be more cautious and focus on cash generation through asset sales [59][60] Question: What is the expected installation demand for solar and energy storage in the U.S. in 2026? - Management expressed optimism for strong demand in energy storage, while solar demand is expected to remain flat [70][72]

AI Infrastructure - Zuckerberg is considering ideas related to a large number of AI data centers [1]

Industry Focus - UEM (Khazanah's infrastructure arm) plans to supply clean energy to data centers in Johor [1] - UEM plans to supply industrial land to data centers in Johor [1] Regional Development - The initiative targets power-hungry data centers in the southern state of Johor [1]

Data Center Market Overview - The discussion revolves around the data center market, particularly concerning whether the current build-out is excessive given potential future technological advancements [1][4] - Some reports indicate existing data centers are facing challenges in selling their capacity, raising concerns about oversupply [3] Technological Innovation and AI Development - There's a belief that innovation will reduce the need for brute-force methods in AI training, potentially diminishing the demand for extensive data centers [4][11] - The AI race between the U S and China focuses on developing cost-effective and usable AI solutions [7] - Deep seek product from Asia demonstrates alternative approaches to AI development, potentially reducing reliance on massive data centers [5] Investment Strategies - Investment strategies should consider diverse options, including companies like Nvidia, AMD, Micron, and Intel, acknowledging the potential of AI [8] - AMD's valuation is predicated on participation in data center build-out, but the actual need for data centers may be less than currently anticipated [9][11] - The deployment of capital will likely shift as the industry moves away from brute-force methods [11] Challenges and Concerns - Data centers face challenges related to power, supply chain, and the need for specialized construction [2][5] - There are concerns about the financial viability of the current data center expansion plans, particularly regarding funding and the overall theory of needing so many data centers [10]

Anthropic's Infrastructure Investment - Anthropic plans a \$50 billion infrastructure project, a significant commitment for a four-year-old startup [1][2] - The \$50 billion investment is being compared to government infrastructure spending, suggesting a measured approach [2] - Anthropic aims to demonstrate fiscal responsibility with this investment, which is an order of magnitude less than some other initiatives [3] Business and Partnerships - Anthropic has raised \$13 billion and is valued at \$183 billion, with 300,000 business customers [3] - Anthropic is partnering with a UK company, Fluid Stack, for US infrastructure development [4] - Fluid Stack, a neo cloud company, is less known but has been involved in a French supercomputer project [4] Computing Needs and Reliance - The total gigawatt figure for Anthropic's US footprint is undisclosed [5] - Anthropic heavily relies on hyperscale partners like Amazon and Google for compute resources, despite the \$50 billion plan [6] - Anthropic will continue to depend on big tech partners and neo clouds to meet its computing needs [7]

A major move in America's AI arms race today with Anthropic. It launched a $50 billion national infrastructure buildout plan and it's all beginning in Texas and New York. Mackenzie Sagalo is joining us now from San Francisco with more.And I guess the question I asked Mac is pretty simple. Where's the money coming from and where's the money going to go. >> And that's a question that I've been asking Anthropic all morning and we don't know yet.Uh so $50 billion. This is pretty notable because it's the first t ...

This year alone, the world will spend $580 billion on data centers, $40 billion more than it will spend on new oil supplies. https://t.co/MT0v6kqrm8 ...

Market Outlook - Markets tend to rally, making it the best time of the year [1] - The market is in a secular bull market, meaning the trend is higher [8] - Expects volatility from time to time, but maintains a long-term target of 10,000 to 13,000 for the S&P [9] - Believes a new market cycle started recently [11] - A 15-20% pullback could occur at any time, but markets are expected to go higher if fundamentals remain solid [12] - Has never seen a market peak or major down cycle while the Fed was cutting interest rates [13] AI and Technology - The digital era brings new innovation in technology, with AI being a key development [2] - Earnings are starting to reflect the impact of AI on companies [2] - This earning season, earnings are up about 15% year-over-year, 7% better than analysts' forecasts, driven by tech companies [3] - Semi-conductors are leading the way in technology development [4] - The demand for technology upgrades is insatiable and will take years to fulfill [4] - The total buildout for data centers, AI, and related energy demand is estimated to be $7 trillion [7]

Of course, there's the energy question. Uh, can the energy supply required meet the demand. Our next guest is out with a new report projecting up to a 20% shortage of US power for data centers through 2028.Joining us this morning, Morgan Stanley's global head of thematic research, Steven Bird, is with us. Stephen, welcome back. It's good to see you again.>> Thanks so much, Carl. Thanks, Sarah. >> So, is this going to get worse before it gets better.My concern is you can run into so many different snags when ...