Keel Infrastructure (KEEL) Q2 FY26 earnings call: guidance and Q&A

How are potential tenants viewing the increasing political and regulatory scrutiny on data centers across the U.S., and how does this impact Keel's sites?

Management noted that regulatory actions and moratoriums in some states increase the value of sites not impacted, like Pennsylvania, which already had a robust framework for large industrial consumers. This creates opportunities for Keel's sites as capacity is still needed in the U.S.

“I think one of the advantages that we have here in Pennsylvania is Pennsylvania is kind of enjoying the second mover advantage. It definitely wasn't the first to jump up there and start building data centers.”

asked by Gareth Gacetta · answered by Benjamin Gagnon

Are environmental permitting challenges for backup power generation (diesel/natural gas) being addressed, possibly by exploring alternatives like backup batteries?

Management confirmed that environmental permits for backup generators can be challenging, with complexity depending on expected usage and emission controls. They stated that Keel evaluates all solutions, including Battery Energy Storage Systems (BESS) and different generator types, to expedite the permitting process.

“So the data center project can have the same backup generator, but based on what its expected uptime, could have 2 very different permits.”

asked by Gregory Lewis · answered by Benjamin Gagnon

Is Keel still targeting 3 leases announced in 2026, given Panther Creek's extended timeline, and how has demand evolved?

Management stated they are in active due diligence and negotiations at all three sites with 'very interesting and sticky potential tenants.' They declined to give specific timelines for announcements but expressed optimism due to the strong commercial process and the increasing value of energy closer to energization dates.

“We're still in active due diligence and negotiations at all 3 of our sites. I think the commercial process is going incredibly well.”

asked by Logan Hennen · answered by Benjamin Gagnon

Is there a higher bar for environmental permitting due to political headwinds, and how does the likelihood of approvals compare to prior quarters?

Management clarified that the remaining permits for Sharon and Panther Creek are standard environmental ones (sewage, erosion, stormwater), which are engineering-focused and not politically sensitive. They highlighted support from Pennsylvania's Fast Track Office and expressed high confidence in completing permits.

“these are engineering focused. Like I said, they're not generally politically sensitive or subject to a whole lot of opinion. It's really just the engineering work.”

asked by Bill Papanastasiou · answered by Benjamin Gagnon

What is the significance of the upcoming August 20 Department of Environmental Protection meeting for Panther Creek?

Management stated that the August 20 meeting is a 'very routine meeting' and not a special or unique event.

“It's very routine meeting. I don't think you should be thinking about this as a special or a unique thing. It's just another routine meeting.”

asked by Stephen Glagola · answered by Benjamin Gagnon

What are the biggest risks for Keel at this point, and what further mitigation can be done regarding supply chain?

Management identified broader macro factors (capital markets, financing, interest rates, risk sentiment) as the biggest risks, rather than supply chain, where they have made progress. They emphasized their strong position due to scarce 2027 power in the market.

“I think the biggest risk at this point is probably just broader macro. The reality is, is that there's still very little 2027 power that's available in the market.”

asked by Nick Chiles · answered by Benjamin Gagnon