Steven Vondran: So I’ll start with the data center question. In general, with CoreSite, what we’re seeing is demand is still largely driven by enterprises moving to hybrid cloud environment. And that’s people who either or either cloud native or primarily cloud or they were still in their on-prem facility, that’s still a major driver. We are seeing AI inferencing pick up in our facilities. We’ve always had some AI applications that we’re targeting our facilities. So we are seeing demand there. More broadly speaking, AI is reducing overall capacity in the market or overall supply of the markets, which is leading to some favorable pricing trends for us. When it comes to the Edge deployment, we do think that AI inferencing in particular, in the interface people have with AI will lead to opportunities there.
Right now, the near-term opportunities that we’re exploring are more niche markets. You may have seen one of our partners put out a blog that we’re working with them on an Edge facility kind of in the automotive market to update software on their products. We have a number of POCs that we’re working on with various partners that are more niche applications in particular. I think the micro data centers at the base of the towers, facilitating AI is still a little bit further out. And we’ll continue to update you guys if there’s something to talk about there. But in the meantime, we just continue to work with our customers or potential customers on iterating on what that’s going to look like.
Rod Smith: Hey, Matt. Regarding the tower life adjustment that you saw running through our numbers here, we essentially increased the tower life from 20 years to 30 years for book purposes for our GAAP books. And that was simply put, it’s just a function of matching up the book life here more closely with what the actual realized life is for the assets. So nothing really more complicated than that other than a realization that these assets last a lot longer than 20 years. So our books will not reflect that going forward.
Matthew Niknam: Got it. Thank you.
Operator: And your final question today comes from the line of Brandon Nispel from KeyBanc. Please go ahead.
Brandon Nispel: Hey. Thank you for taking the question. So when we look at the capital spending to the data center segment and your development pipeline, does that imply your development pipeline — with your development pipeline, does that imply capital spending expansion beyond 2024, really, how does that inform your decision on spending around your remaining businesses in your tower segments? Thanks.
Steven Vondran: Sure. Well, the record amount of sales that we’ve had is what’s led to increasing the development pipeline there. And it really depends on what our sales are this year and how we continue to see the opportunities in that portfolio evolve as to what the future spending are. So it would be premature for me to kind of guide future years’ capital there. What I would reinforce is that we have a degree of optionality in our capital spending and that we do have a structure with CoreSite where we also have partners in that business. And so there is some optionality in terms of how much capital we put in, and you could see us using our capital or somebody else’s capital to expand if we thought that was a better option for us.
But at this point, the development pipeline we have today, we’re choosing to sell fine because we’re achieving mid-teens stabilized returns, very low risk in our existing campuses, and we continue to see demand rise. So we’ll make that assessment into what’s appropriate for 2025 and later a little bit later, and we’ll share that with you guys at the appropriate time.
Rod Smith: Hey, Brandon. Rod here. The only thing I would add to Steve’s comments there is that we have full optionality kind of going forward. I think Steve alluded to this, but going beyond 2024 the fact that we’re investing $450 million in the data center business in 2024 does not commit us to that level or a higher level of capital spending in that business going forward. So we have a fair amount of flexibility to deploy capital towards towers, towards data centers, towards towers in developed markets, emerging markets, certain countries, not other countries as we go year-to-year. So we will be looking to secure that optionality, protect that optionality so we can always make decisions with our capital that follow the best risk-adjusted rates of return around the globe for any given year.
Brandon Nispel: Great. Thank you.
Adam Smith: Thank you, everybody for joining today’s call. If you have any follow-up questions, please feel free to reach out to the Investor Relations team. Thank you all.
Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Teleconference. You may now disconnect.
