An Interview With Chad Silverstein
Build a Knowledgeable Team
Assemble a team that understands the market and knows how to address it. At Quantum Loophole, we brought together experts who could see the long-term potential of our Ecoscale approach. Our team’s deep understanding of both the data center industry and renewable energy integration was crucial in developing and executing our strategy. This alignment of expertise has been key to our success.
In today’s competitive business landscape, the race for profits often takes center stage. However, there are some leaders who also prioritize a mission-driven purpose. They use their business to make a positive social impact and recognize that success isn’t only about making money. In this interview series, we are talking with some of these distinct leaders and I had the pleasure of interviewing Rich Paul-Hus.
Rich is Senior Vice President at Quantum Loophole, overseeing sales, public relations, and lobbying efforts. Previously, he was the CEO of HUSdigital LLC, where he focused on strategy, business development, and growth initiatives. Rich has extensive experience from his roles at Whoop Wireless and Hypower, and he is dedicated to fostering corporate culture and attracting world-class talent in the digital ad space.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
I am the son of immigrants from Canada. My parents, who only spoke French, moved our family from Montreal to the US in the early 70s due to the weak economy there. My dad, a union electrician, initially sought work in Rochester, New York, and then on the East Shore of Long Island, but had no success. Eventually, we moved to Fort Lauderdale, Florida, where he still struggled to find union work and was forced to become an entrepreneur.
One day, he left the union hall with his tool belt and pickup truck, going door-to-door to offer his services. Despite knowing little English, he managed to build a thriving business. Within ten years, he had 450 employees and became one of the largest electrical contractors in the southeastern United States. I grew up immersed in this entrepreneurial environment.
After school and during summers, I would help in the family business, doing tasks like cutting grass, sweeping floors, counting paychecks, and running tools to job sites. After completing my education, I joined the company full-time, and in 2000, we bought my dad out and significantly scaled the business.
In 1998, I took on a new challenge when the governor of Florida, for whom I had volunteered, wanted to diversify the state’s economy. I suggested building the fifth Tier 1 network access point in the United States, located in Miami, to bridge the digital gap between the US and Latin America. He asked me to lead the project, and over two years, I coordinated a consortium of 43 major telecom companies, resulting in the creation of the NAP of the Americas. This project connected me with key industry figures and marked my entry into the tech space.
Can you share the most interesting story that happened to you since you began leading your company or organization?
One of the most interesting experiences I had as a leader was during our efforts to pass the critical digital infrastructure bill in Maryland. For three months, we faced strong opposition from a group in the legislature. Then, on Earth Day at the University of Maryland, I had a pivotal conversation with an individual who had originally fought against our project.
During a 20-minute conversation, I explained the concept of Ecoscale to them. By the end of our discussion, they realized we weren’t the enemy but rather a path to achieving a brighter future for Maryland. This realization was a turning point, showcasing the power and potential of our work in developing data centers better. That day at the University of Maryland marked a significant shift in our journey.
We often learn the most from our mistakes. Can you share one that you made that turned out to be one of the most valuable lessons you’ve learned?
When we first launched Quantum Loophole in 2020, we were mesmerized by the sheer scale of our project and regularly emphasized its size to the marketplace and our stakeholders. We were almost “drinking our own Kool-Aid.” However, we quickly realized that this approach was counterproductive; it was scaring the very people we were trying to help.
As a young start-up, we learned from this mistake. In fact, we learned a very crucial lesson: the path to developing data centers at scale isn’t just about making them bigger but about making them better. This realization led to the birth of Ecoscale. We shifted our focus from merely showcasing size to emphasizing quality, efficiency, and sustainability. This approach not only calmed the fears of our stakeholders but also aligned with our long-term vision of creating mutual benefits between nature, community, and industry.
As a successful leader, it’s clear that you uphold strong core values. I’m curious what are the most important principles you firmly stand by and refuse to compromise on. Can you share a few of them and explain why they hold such significance for you in your work and life?
At Quantum Loophole, and in my approach to leadership in general, I believe that mission-driven companies have the greatest impact both in their communities and globally. They are also the most attractive places to work because employees can associate their efforts with a higher purpose beyond merely selling products.
One of our core values at Quantum Loophole is the commitment to transforming how data centers are delivered. Over the past 20 years, data center development has often been frenetic and reactive, described by the term “hyperscale.” This approach is simply not sustainable for humanity and frustrating for the communities where these data centers are built.
We are absolutely committed to demonstrating a better way to deliver data centers at scale, which is vital for our collective future. This commitment goes beyond meeting the demand for compute capacity; it’s about ensuring the sustainability and well-being of local ecology, communities, and governments. .
Adhering to the principles of Ecoscale, focusing on ecological sustainability, and creating economic win-wins with communities and government entities are paramount to our mission. These principles guide and drive us in every day’s work, ensuring that we contribute positively to both our industry and society as a whole.
What inspired you to start a purpose-driven business rather than a traditional for-profit enterprise? Can you share a personal story or experience that led you to prioritize social impact in your business?
We realized early on that we couldn’t meet the growing needs of the data center market using outdated methods. This epiphany came to our founder, Josh Snowhorn, who then called me, and we sat down at a Starbucks to discuss it. Josh had already envisioned a 1.25 gigawatt natural gas combined-cycle power plant surrounded by 12 million square feet of data centers for the hyperscale community. It was a brilliant idea, but it required about $50 billion in capital.
From this initial concept, our approach evolved into master planning the future of data center markets. When Scott Noteboom joined our team, we further refined our vision to include harmonizing renewable energy with data center loads. In 2023, we faced three major challenges that could have ended our young company. However, we persevered and learned that creating a blueprint for building better data centers was the key to success. This idea evolved into the concept of Ecoscale.
We were already committed to addressing the massive load data centers place on the global grid. Data centers are the third largest energy consumers worldwide, and the demand is only growing. Industry leaders have emphasized the need for significant infrastructure investment to meet future compute capacity requirements. We found ourselves in the right place at the right time, driven by the need to organize the data center market effectively.
We saw a need and an opportunity to create significant value, So we built our team with smart, good-hearted individuals. With this team, our mission evolved into something even more meaningful. The blueprint for delivering data centers better, encapsulated in the term “Ecoscale,” became our guiding principle.
Our goal is to show the world a better way to develop data centers — one that integrates seamlessly with nature and community needs. This isn’t a short-term project; it’s a long-term commitment. We believe that by sticking to our Ecoscale principles, we can achieve not just financial success but also a positive impact on the environment and society.
Can you help articulate a few of the benefits of leading a purpose-driven business rather than a standard “plain vanilla” business?
I believe that a business is essentially a collection of people united by a common mission. When your business is driven by a purpose, such as harmonizing nature with industry, it sets a clear North Star for all decisions. This is especially true when you can extrapolate the positive impact of our efforts, like what we’re doing in Frederick County, MD, to a global scale.
The most significant benefit of a purpose-driven business is its ability to attract the right people. A compelling mission that drives goodness for a large segment of society is inherently attractive. When your mission is wholesome and genuine, it resonates with people who want to be part of something bigger than themselves. It becomes easier for individuals to associate with the mission, join the team, and contribute to its success.
Moreover, while we must ensure the well-being of our team members and achieve financial success, a purpose-driven business demonstrates that it’s possible to make substantial profits while serving a meaningful cause. This dual focus on purpose and profit is highly attractive to many people, creating a winning team that is motivated by more than just financial gain.
In summary, leading a purpose-driven business not only aligns the team with a clear, impactful mission but also attracts passionate, dedicated individuals who are eager to contribute to the company’s success and broader societal good.
How has your company’s mission or purpose affected its overall success? Can you explain the methods or metrics you use to evaluate the impact of this purpose-driven strategy on your organization?
Quantum Loophole is still in its early stages, so measuring our overall success is challenging. However, if we evaluate our success based on the time that has passed since we started the company, there are notable indicators of success.
One example is the initial fear from local stakeholders, such as the greater agriculture community and farmers surrounding Quantum Frederick, who were concerned that our operations would deplete the groundwater supply. Once they saw our significant investments in protecting both the groundwater and potable water supply, their apprehension turned into support. We were greeted with hugs, signifying a strong shift in perception and trust.
Another example involves the most prominent environmental organization in the state. Initially, they were very wary of us, fearing we might have a negative environmental impact. However, once they understood our genuine commitment to sustainable practices and saw that we could deliver on our promises, they went from opposing us to supporting and collaborating with us to improve data center development in Maryland.
These moments, while seemingly small at the time, are pivotal. They reflect our dedication to core values and our mission to drive positive impact in Frederick County, Maryland, the state, the country, and ultimately, the world.
Our evaluation methods include monitoring stakeholder feedback, tracking our environmental impact, and measuring community support and engagement. These metrics help us ensure we stay true to our mission and continuously improve our approach.
Can you share a pivotal moment when you realized that leading your purpose-driven company was actually making a significant impact? Can you share a specific example or story that deeply resonated with you personally?
A pivotal moment for me occurred at a Data Center industry event in France where I met with an influential executive from a global company that builds hyperscale data centers.
As I shared the ethos of Ecoscale and how we are applying it in Maryland, I saw her reaction shift to genuine interest. She said, “Now that is interesting. That is powerful. That’s something I want to learn more about.” Her response underscored the potential impact of our approach.
Seeing her intrigued by our strategy to drive tens of millions of square feet of development while being carbon negative and achieving win-win scenarios was incredibly validating. Her recognition of our efforts, especially considering her experience and the challenges we face from environmentalists, confirmed that our approach resonated at the highest levels.
This moment was crucial for me. It demonstrated that our work could influence the data center industry globally and inspire all industrial developers to find better ways to develop. Realizing this potential impact reinforced our commitment to Ecoscale and motivated us to keep pushing forward, knowing the global significance of our mission.
Have you ever faced a situation where your commitment to your purpose and creating a positive social impact clashed with the profitability in your business? Have you ever been challenged by anyone on your team or have to make a tough decision that had a significant impact on finances? If so, how did you address and reconcile this conflict?
This conflict is ongoing and perpetual. To achieve our goals, we need to secure substantial third-party investments, often from private equity, whose primary objective is to generate returns for shareholders. Our role is to manage and drive this success on their behalf. The friction arises in how we achieve this success.
At Quantum Loophole, we believe that the path to success lies in our ethos of Ecoscale and creating win-win situations, which will drive long-term success. For example, in Northern Virginia, obtaining site plan approvals leads to increased development, which eventually makes future approvals more difficult due to urban sprawl and related challenges. In contrast, by promoting Ecoscale in Maryland, the process would be more seamless, as our sustainable approach reduces friction over time.
This strategy requires continuous alignment and adaptation to a constantly evolving marketplace. The Ecoscale ethos serves as our guiding principle to balance capital needs and societal impact. As master plan developers, we strive to find the right blend of these factors.
There are many instances where our social impact goals clash with capital needs. For instance, building QLoop across the Potomac for redundancy, involves significant upfront capital expenditure, which might conflict with immediate financial considerations. However, constructing this large system once, rather than multiple smaller builds over time, aligns with our Ecoscale philosophy and ultimately supports a proactive, sustainable data center market.
We continuously navigate these natural frictions to find the right balance. Fortunately, we have excellent partners and team members who engage in robust debates to determine the optimal path forward.
What advice would you give to budding entrepreneurs who wish to start a purpose-driven business?
Realize that your potential survival rate in the first couple of years is very low. Starting any business is very difficult. I use the analogy all the time: starting and building a business is like having a baby. I have four kids, and when you first have that baby, when they send you home from the hospital, you’re thinking, ‘What are they doing? I’m all on my own here.’ You’re struggling with every whimper that baby makes; it freaks you out. Well, your company will do that to you as well, and your survival chances early on are difficult, but if your purpose is right and you’ve aligned your capital properly, and the market is there, you can succeed. Don’t get into business if all those metrics aren’t there.
If you’ve got a growing marketplace and you can see the demand developing for your purpose-driven business, then just don’t quit. Find the path around obstacles and work through to move the obstacles away. Do whatever you have to do to survive, and be ready to work very hard and deal with whatever gets thrown at you, because you’re going to get more surprises than you can imagine. In the end, I grew up in a business that wasn’t really a purpose-driven business, other than the purpose to feed our family, but it was a normal business in a normal industry that was somewhat stale and old. If you can start a mission-driven business, you’ll be able to attract amazing talent with the right purpose.
Just keep pushing forward and never quit, because you only lose when you quit.
What are your “5 Things You Need To Create A Highly Successful Purpose-Driven Business.” If you can, please share a story or example for each.
1 . Identify a Market Opportunity
There must be a gap in the market that your business can fill. For us, the data center industry has evolved significantly over the past 25 years, with a trillion dollars invested globally. This evolution has been largely reactive, driven by hyperscalers chasing demand. As digital transformation accelerates, the next 20 years will see even greater demand for data centers. We recognized that continuing to deploy data centers reactively was unsustainable, so we shifted to a proactive approach, aiming to harmonize renewable energy loads with data center needs through our Q-Energy solution. This proactive stance fills a critical market gap.
2 . Build a Knowledgeable Team
Assemble a team that understands the market and knows how to address it. At Quantum Loophole, we brought together experts who could see the long-term potential of our Ecoscale approach. Our team’s deep understanding of both the data center industry and renewable energy integration was crucial in developing and executing our strategy. This alignment of expertise has been key to our success.
3 . Secure Capital Partners
Find capital partners who believe in your vision and are willing to invest in your journey. Sustainable investors, driven by climate crisis concerns and renewable energy goals, have been essential for us. These partners are not just providing funds; they are also invested in achieving a more beautiful outcome, aligning with our purpose of Ecoscale development. Their support allows us to make significant upfront investments that pay off in the long run.
4 . Develop a Strong Solution
Have a solid product or service that addresses the market need. Our first major product is a 2,200-acre site dedicated to our Ecoscale data center model. This site allows us to harmonize energy loads and data center operations, creating a scalable and sustainable solution. Our innovative approach to data center deployment sets us apart from traditional methods and meets the growing demands of the market.
5 . Achieve Organizational Alignment
Ensure alignment within your organization and with external stakeholders. Understanding and communicating your purpose clearly is vital. At Quantum Loophole, we prioritize alignment with our team, community, and government. By aligning with hyperscalers, third-party data center operators, local communities, and government entities on ecological, economic, and societal goals, we create a winning ecosystem. This alignment drives our purpose forward, benefiting all stakeholders involved.
I’m interested in how you instill a strong sense of connection with your team. How do you nurture a culture where everyone feels connected to your mission? Could you share an example or story that showcases how your purpose has positively influenced or motivated people on your team to contribute?
Since we are still a young company, this story is just beginning to unfold. At Quantum Loophole, we created a team called SICDA (Strategy, Innovation, Culture, Development, and Alignment). The initial task for SICDA was to redefine our purpose, vision, and mission.
Our founding team, including the executive team, drives the company at a high strategic level, often interfacing with the board. In the early stages, everyone on the founding team wears multiple hats. For example, my initial role was in business development, but I quickly became involved in marketing, public affairs, government affairs, corporate development, and more. This is necessary in a small team where everyone needs to do a bit of everything.
As we started building the next layer of leadership, we selected seven people from our company to regularly discuss and redefine our purpose, vision, and mission. The goal was to adapt our original ideas from four years ago to today’s reality. This process not only updates our core values and mission but also engages these future leaders deeply, ensuring they are committed to our purpose.
If these leaders buy into our mission, they become custodians of our culture. They will help onboard new team members, ensuring they understand and align with our values. They also play a crucial role in maintaining our culture by identifying and addressing any misalignment within the team.
This layered approach is how great organizations build and scale over time. Though we are in the early stages — perhaps just stepping up to the batter’s box — we believe this strategy will set the foundation for our future success.
Imagine we’re sitting down together two years from now, looking back at your company’s last 24 months. What specific accomplishments would have to happen for you to be happy with your progress?
To be happy with our progress two years from now, several key accomplishments would need to occur:
- Property Closures and Development
We need to have closed on the properties we’ve been targeting. The Nature Reserve should be 25% built out by this point. The seven major pillars of our master plan data center community should be evident not only to our local community but also to our customers. These pillars should start showing the results of our investments.
2. Environmental Initiatives
We are working with local farmers in Maryland to establish a carbon capture program. In two years, we should be able to discuss the tangible outcomes of this initiative. For instance, we have committed to planting a million trees over seven years. By then, we should have completed two years of this initiative, with significant progress to show.
3. Team Expansion and Alignment
Our team should have grown by 3x to 4x, with new members fully aligned with our mission. This growth will be a testament to our ability to attract and retain talent committed to our purpose.
4. Industry Recognition
The term “Ecoscale” should be gaining traction within the industry, potentially replacing “hyperscale” due to its positive connotations. This shift in terminology would validate our ethos and demonstrate its influence on the marketplace.
5. Customer and Community Engagement
Our efforts should be recognized and appreciated by our local community and customers. They should be able to see the tangible benefits of our investments and initiatives, reinforcing our commitment to sustainability and community development.
These milestones will indicate that we are on the right path and that our purpose-driven approach is making a meaningful impact.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
I believe developers in the data center space and beyond should recognize that we can harmonize development with nature, our communities, and governments to create projects where all stakeholders feel they have won. This is especially crucial in large industrial projects, like the ones we anticipate. For example, Sage Policy Group estimated $30 billion will be invested in our site. I think this is a conservative number based on market trends.
If projects of this size can serve as a model in the data center industry for harmonizing development with nature, this approach could catch on globally. We are already seeing similar efforts in various parts of the world. By setting this example within the data center industry, we can inspire a broader adoption of sustainable development practices across other industries. This achievement would be something every team member could be proud of, knowing they helped create a more harmonious and sustainable future.
How can our readers further follow your work or your company online?
Readers are encouraged to visit our website at www.quantumloophole.com. We are active on LinkedIn as well and readers can follow us here: https://www.linkedin.com/company/quantum-loophole/
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com
Purpose Before Profit: Rich Paul-Hus On The Benefits Of Running A Purpose-Driven Business was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.