Hidden within the details of Mattr Corp's Q1 2024 earnings call lies a subtle shift with the potential to catapult the company's revenue. While headlines focused on organic growth and acquisitions, a comment about data center construction, particularly the growing preference for **underground liquid storage**, hints at a game-changing opportunity for Mattr's Xerxes division.

Mattr Corp. (OTCPK:MTTRF) Q1 2024 Earnings Conference Call Transcript

CEO Mike Reeves highlighted the booming data center construction market in North America, driven by demand for AI and cloud storage. This is significant because Xerxes specializes in the large, complex composite tanks needed for underground liquid storage. This shift in construction practices could unlock a massive market for Mattr, potentially overshadowing its existing fuel station business.

The Data Center Advantage: Tanks and More

Reeves revealed a key detail: a single data center using underground storage could require 8-15 large composite fuel tanks, plus 5-10 tanks for water and fire protection. This translates to 13-25 tanks per data center, compared to just 3-7 for a typical fuel station.

"Fuel Tanks Water/Fire Protection Tanks Total Tanks Data Center 8-15 5-10 13-25 Fuel Station 3-7 0-2 3-9"

With an estimated 5,000 data centers in the US and a projected annual growth rate of 5%-10%, the potential market for Xerxes tanks is staggering. Assuming a conservative 5% growth and an average of 18 tanks per data center, that's 90 new data centers requiring about 1,620 tanks annually. At a modest $50,000 per tank, this represents $81 million in potential annual revenue for Mattr – a figure that could easily double or triple with higher growth and larger projects.

Beyond Tanks: A Synergistic Opportunity

The data center opportunity extends beyond tanks. Mattr's connection technologies segment already supplies wire and cable solutions for data center construction and utility network expansion. Capturing both the tank and wiring/cable needs of a single data center could generate over $2 million in revenue for Mattr.

Hypothetical Revenue Impact

If Mattr captures just 20% of the underground tank market for new data center construction, this would add approximately $16.2 million in annual revenue. This calculation is based on:

- 18 tanks per data center at $50,000 per tank

- 5% data center growth rate

Revenue Growth: A Compelling Trajectory

This silent revolution in data center construction could spark explosive growth for Mattr, potentially doubling or tripling its revenue over the next decade. While the company remains focused on organic growth and acquisitions, this burgeoning data center opportunity offers a compelling path to achieving its ambitious goal of doubling revenue by 2030. The seeds of Mattr's next chapter may have already been sown.

Fun Facts: Data Center Boom

"* The global data center construction market is expected to reach $62.3 billion by 2028. * Data centers consume an estimated 2% of the world's electricity."