Cascade Divide

Bend Oregon – 207 SW Columbia Street, - Data Center

Nov 2020 Opportunity

1
Cascade Divide - Data Center Opportunity – 207 SW Columbia Street, Bend, Oregon 97702
Data Center – Built in 2016 – Tier III Standards – 2.5 Cascade Divide YTD (9
Year Year
MW to the Power Room, equipped now for 750kw to Months)
White Space 30-Sep-20 2019 2018
Revenue:

Construction Costs: $11.5 mil Internet services 62,604 86,683 102,121

Investment to Date: $13.7 mil
Colocation/Cloud 236,032 299,110 253,760
June 2020 Appraisal: $15.7 mil
Existing Loan: $5.7 mil, after selling Professional
6,851 1,147 1,673
excess property for $3.2 mil, plan to refinance services
305,487 386,940 357,554
Cost of revenue:
Internet services 36,340 74,300 94,993
Power 89,679 116,801 113,375

Colocation/Cloud 5,395 8,760 14,827

131,414 199,861 223,195
Gross margin 174,073 187,079 134,359
Operating
expenses:
Human resources 34,202 38,609 68,066
Site Operations 44,251 59,002 51,238
Commissions 1,800 20,736 5,662
Insurance 6,038 9,358 9,559
86,348 127,705 134,524
EBITDA 87,725 59,374 (166)
 Cascade Divide - Data Center Opportunity
Cascade Divide Bend Data Center was built to support a strategic company that wanted the same benefits that have
caused Google, Facebook & Microsoft to purchase data center campuses nearby. Current unrelated economic
challenges have resulted in this new data center capacity to be available on the market. A turnkey solution is available
for colocation or can be leased in total. We can bundle the Bend Site with nearby 5 to 25 acres that have adjacent
access to 30MW power @ <$0.04/kwh (25 miles away).

Lower total cost (TCO), for same size/quality, than other industry leading cloud/colo options; at a sustainable
location that is becoming a major hub for the cloud infrastructure in the Western US.

• A turn-key, future proofed, data center designed to enable thought leadership requirements that will be standard
in the near future (e.g. 32kwh and 10 Petabytes per rack available)
• Lower total operating cost per SQF space than other locations (e.g. California, Seattle, Portland, Hillsboro) that
limit you to 6-8 kwh per rack.
• Sustainability enabling for western US. All of the coastal cities are on/near a major fault line; Bend Oregon has
little to no catastrophe risk
• Strategic Network location connected to backbone of internet: Central to western region of US and close to
undersea network cables to Asia
• Near large dedicated data center campus sites for Facebook, Google & Microsoft. Can use the Bend site as the
Edge while building out a much larger campus just 25 miles away.
Cascade Divide – Why do our Clients like us…..
KEY BENEFITS FOR CLIENTS:
Cascadia Fault
Energy - Power Costs
1. Lower Cost of Energy – 4+ cents/kw cheaper than most California Markets
2. Energy Efficient Purpose Built Construction – Design PUE 1.12, often operate Lower
3. Unique Climate – High Desert provides Significant Temp Change Daily – Providing “Free Cooling”

Location – Access and Security

1. Lower Latency to the Majority of Northwest Markets (lower fiber route miles from Bend to key
Cities)
2. Access Both International Networks in Seattle and Portland, and reach Seattle without going
through Portland
3. On Fiber Crossroads from East to Northwest, and from North to South (no dead ends)
4. Sitting on Solid Rock – 4,000 feet of Basalt
5. Avoids the impact of the Cascadia Subduction Zone is a 600-mile fault that runs from
Northern California up to British Columbia
a. Cascadia fault is past due for an event, which will impact the Coast and I-5 Corridor
b. Bend is the safest location in Oregon, and is the key Disaster Recovery Site.
6. Direct Flights to 8 major cities (LAX, SFO, SEA, PDX, DEN, SLC, LAS, PHX)

Cascade Design
1. Purpose Built – Designed to be a Data Center – 48U Standard Rack
2. High Energy Capacity per Rack (up to 32kw)
3. Zero Down Time since Operational - 2016
A turn-key, future proofed, data center designed to enable
thought leadership requirements that will be standard the near future
(e.g. 32kwh and 10 Petabytes per rack available)
• Currently 12% utilized with local
onsite team operating and ready
to scale.

• Best Power Efficiency of any

data center currently @ <1 PUE.
Designed for 1.12 PUE.

• Same data center designer as

Google, Apple and Facebook
data centers which are nearby.

• Total of 10 MW potentially
available at Serving power
sub-station. Site capacity could
support 900 to 2000 cabinets
with expansions. (20,000+
petabytes capacity possible)
Lower total operating cost per SQF space than other locations
(e.g. California, Seattle, Portland, Hillsboro) that limit you to 6 -8kwh per rack.

• $0.04 to $0.065kwh is
substantially cheaper than
California and many other
locations; and power drives
the cost of a data center….

• Power limits per rack at other

sites require customers to buy 2-
3+ cabinets to support a single
energy driven device, instead of
filling up our rack.

• Enable 2x to 10x less $ for

cabinet monthly fee to enable
the power/cooling customers
need for their devices; and pay
1/2 to 1/3 the price for power
(per kwh)
Sustainability enabling for western US. All of the coastal cities are
on/near a major fault line; Bend Oregon has little to no catastrophe risk
• Cascade Divide is very low risk compared to cities on the WestCoast.
• Black swan catastrophes do happen (e.g. COVID19, Tsunamis & Earthquakes)
• Perfectly located for disaster recovery hot backup site to mirror data center near fault lines
Strategic network location connected to backbone of internet: Central
hub to western region of US and Submarine Fiber to Asia
• Bend Oregon is the 3rd fastest growing
city in the United States.

• Oregon has just as many submarine

Hillsboro fiber cables going to Asia as California
and Washington

• B1 is carrier neutral including: TDS

Telecom, Integra, Level3, LSN/Quantum
Communications, Fatbeam
Bend Communications, Bendtel
Communications, Centurylink, Wave
Broadband, Zayo

• 100G onramp to AWS Direct Connect

and Microsoft Express Route can be
available
Near large dedicated data center campus sites for Facebook, Google &
Microsoft. Use Bend turnkey solution while building out B2 campus.
• Package deal opportunity available to acquire
turnkey (@/$0.065 kwh) and also bundle
together B2 nearby for future Hyper Scale data
center with up to 30 acres (in 5 acre lots) @
<$0.045 with 30MW available next door.

• Oregon provides generous tax benefits for

building and owning data centers and the
Bend Oregon area is quickly becoming a Tier 1
Data Center location

• Purchase/Lease Bend turn-key now and

207 SW Columbia, Bend, Oregon expand to phase 2 & 3, while Cascade
Turn-Key Ready Divide helps manage development of B2.
Phase 1 (Live): 250 cabs @2.5MW
Phase 2 & 3: 500 cabs@5MW
$0.065 kwh 0.7 acres
B2 in LaPine, Oregon • Oregon Business Enterprise Zone tax benefits
Land Under Contract provide incentives
30+MW available
30 Acres in 2.5 to 5 acrelots
Power Data $0.045kwh
SubStation Center
Cascade Divide – Bend Options

Lease It Out: Work current deal pipeline, complete deals & RFPs with 1+ companies (e.g. DigitalRealty,
SaaS companies, Nike) that need data center location, understand cost savings value and want to be
near central hub (w/Google, Facebook,Microsoft).

Hold It and use it: Acquire and rollup regional MSPs; fill up data center with the client's they support;
consolidate their colo footprint to higher density Petabyte option. Hold onto it.

Sell It as part of larger turnkey strategy: Package this Bend phase 1 data center with nearby 25
acres 30+MW site to enable turn-key hyper-scale solution at lowest operatingcostavailable.
Manage local development of site and provide ongoing services/support with local resources available if
buyer just wants to hold real estate.
Cascade Divide Data Center Leadership Team

John Warta Michael Phillips

Chairman Site Manager
• Founded and acquired • Data center operatorand
multiple companies in cloud innovator
Telecom and Internetspace. • 12+ years data center &
• Early employee of Ross Perot technology experience
• Raised $3B and built data
centers across U.S.
• 40+ years data center&
networking experience
Cascade Divide B1 Site Specs