Srimad-Bhagavatam: Canto 7 - Chapter 1 - Verse 34
अनन्ताव्यक्तरूपेण येनेदमखिलं ततम् ।चिदचिच्छक्तियुक्ताय तस्मै भगवते नम: ॥ ३४ ॥
anantāvyakta-rūpeṇayenedam akhilaṁ tatamcid-acic-chakti-yuktāyatasmai bhagavate namaḥ
Let me offer my respectful obeisances unto the Supreme, who in his unlimited, unmanifested form has expanded the cosmic manifestation, the form of the totality of the universe. He possesses external and internal energies and the mixed energy called the marginal potency, which consists of all the living entities.
The Lord is endowed with unlimited potencies (parāsya śaktir vividhaiva śrūyate), which are summarized as three, namely external, internal and marginal. The external potency manifests this material world, the internal potency manifests the spiritual world, and the marginal potency manifests the living entities, who are mixtures of internal and external. The living entity, being part and parcel of Parabrahman, is actually internal potency, but because of being in contact with the material energy, he is an emanation of material and spiritual energies. The Supreme Personality of Godhead is above the material energy and is engaged in spiritual pastimes. The material energy is only an external manifestation of His pastimes.