Csquare, Inc.

Current report

Our growth depends on the successful development and expansion of our data centers, and delays, cost overruns, or selling risk could have a material adverse effect on our business, financial condition and results of operations.

Current report

Our growth depends on successfully completing development and expansion of our existing data centers and pursuing similar projects in the future. These projects involve substantial planning and allocation of significant resources and are subject to risks related to land acquisition, zoning ordinances and codes, entitlement and regulatory approvals, construction costs and delays, permitting timelines, contractor and subcontractor performance, labor availability, utility coordination and the timing of customer deployments, and financing conditions. Such delays have occurred from time to time in the past and may occur in the future. We are currently experiencing delays at a small number of development projects in one market associated with the performance of a third-party contractor and permitting timelines. Customer deployments associated with these projects will, or may, be delivered later than originally anticipated. We are engaged in negotiations with one customer regarding a revised delivery schedule and the resolution of this matter remains under discussion. Any current or future delays could result in deferred revenue recognition, increased costs and reduced returns on invested capital.

Current report

We also rely on the performance of general contractors and subcontractors. If a general contractor or key subcontractor experiences financial distress or performance issues, we could experience significant delays, increased costs to complete projects, and reduced returns. In addition, site selection is critical, and there may not be suitable properties available in our markets that combine attractive customer location, connectivity, high ceilings, heavy floor loading capacity, and access to required utility infrastructure. While we may prefer to locate new data centers near existing campuses, we may be limited by the availability and characteristics of suitable sites.

Current report

In some cases, we may not require commitments from customers before we develop or expand a data center, and we may not have sufficient customer demand to sell newly developed space upon completion. Once a development phase is completed, we incur operating expenses even if space is not occupied. A lack of customer demand, delays in customer deployments, or excess market capacity could impair our ability to achieve expected returns, require pricing concessions, or result in underutilized assets, which could have a material adverse effect on our business, financial condition and results of operations.

Current report

If we are unable to successfully develop and expand our data center properties, our ability to grow our business, compete and meet market expectations will be significantly impaired, which could have a material adverse effect on our business, financial condition and operating results.