"Weak governance that was fine during the mining era becomes a real liability when you're selling long-term power capacity to corporate tenants" [Weak governance]
This quote directly names the governance mismatch mechanism — the same organizational structures that were adequate for mining are structurally insufficient for the contractual and capital-allocation demands of AI infrastructure leasing.
Reasoning from this article
The article identifies a recurring pattern in sector transitions: firms that succeed in one operational paradigm carry legacy governance structures that become liabilities in the next. The specific risk here — capex overruns, schedule slippage, and tenant creditworthiness mismatches — generalizes to any capital-light operator attempting to scale into capital-intensive, long-duration infrastructure contracts. The bear-case scenario described (equity dilution, asset sales, upside capture by lenders) is a classic pattern of value transfer from early shareholders to late-stage capital providers when execution capability lags financial ambition.