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Industry

Technology

Company Type

Data Centers

Size

$14 Million

Investment Type

Equity/Debt

For additional information, please contact:
John Haltmaier | Managing Director
(212) 418-1183

Overview

LongX, wholly-owned by the DeCheser Group (“DGI”), is raising $14 million of equity and debt (depending on investor preferences) as the initial tranche to build a large-scale data center on a 57.5-acre industrial lot in McKenzie County, ND at an expected cost of over $1.2 billion.

  • Proceeds will be used to pay off an existing mortgage, buyout minority land-owner, conduct predevelopment work, secure permits and entitlements and fund the site development plan
  • LongX owns 60% of the land, has full control of the project and plans to buy out the 40% silent partner with proceeds from the raise
  • Property is ideally situated (isolated, cold climate, low taxes, inexpensive land, high fiber per capita, and pro renewable/sustainable energy development state), zoned for commercial use and approved for a data center
  • Founder Peter DeCheser has an extensive background in finance, real estate and project development

Opportunity

  • The US has over 5,000 data centers and accounts for roughly 40 percent of the global data center market
  • Data center growth in the US shows no signs of slowing down, driven by changing work habits during the pandemic, the growth of cloud-based technologies, and the explosion of the use of artificial intelligence (AI) technology
  • As an example of AI usage growth, ChatGPT users grew from 100 million per month in early 2023 to 400 million by the end of the year
  • As measured by power consumption in megawatts, data center supply grew 26% in the top US markets in 2023, with a 46% increase in construction year-over-year
  • 83% of the supply under construction has already been leased

Sustainability

All major hyperscale data center operators have taken some form of sustainability pledge to be more “green”, which is a major challenge for data centers due to several factors

  • Consumes massive amounts of power to operate reliably 24-hours a day – a large center can use as much power as 80,000 households
  • Generate significant “e-waste” from to frequent equipment upgrades
  • Require large amounts of land and water (for cooling)

Solution/Strategy

  • LongX believes this is an excellent site for a major hyperscale data center, utilizing a renewable/sustainable energy source – small module nuclear reactors (“SMR”)
  • Large tracts of inexpensive land, such as the subject property, are available in North Dakota and zoned for commercial uses, including as data centers
  • Major data center operators will be keenly interested in leasing the site given the ongoing demand growth for data processing
  • Alternative power sources (local grid and natural gas-powered generators) are available to provide redundancy and in case SMRs do not become a viable solution in a timely manner

Management Team

Peter DeCheser | CEO


  • Over 30 years of experience as a leading capital markets and investment services advisor
  • Exclusively represented hundreds of clients, conducting more than 1,500 advisory, valuation and transactional assignments, totaling more than $30.5 Billion
  • Extensive experience in real estate and renewable energy. Represented dozens of utility grade renewable energy projects in the US and abroad
  • Founded DeCheser Group in 2016, which owns LongX, and has engaged in over $20 billion of energy and development projects
  • Preferred vendor of Colliers International Valuation Services Group. Previously headed the Capital Markets & Investment Services Group at Colliers International and earlier held senior positions at DTZ, JLL and Massey Knakal Realty Services
  • BA, Latin, Colgate University
  • Executive Management Certificate, Private Equity and Venture Capital, Harvard Business School
  • Executive Management Certificate, Privatization and Global Reform, Harvard Kennedy School

Specific Risks

  • Demand for data center services may not materialize as expected
  • New data center construction may result in excess supply and declining pricing for these services
  • Construction of the data center may take longer and cost more than expected
  • The data center may not perform as expected or at a profit margin that is not as high as expected due to higher costs and/or competitive pricing pressures
  • The data center is to be powered by compact nuclear reactors, which have yet to be deployed for this application and will be subject to extensive environmental scrutiny
  • Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment
Learn More About LongX

Thank you for your interest in LongX.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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