AI Data Center Agreements Growing at 55x Speed: Wall Street's Profitable Route

Although there has been a slowdown in the AI excitement, financing activities in the data center and Bitcoin mining sectors remain active. The main reason for this is that energy sources continue to be a fundamental necessity. B. Riley Securities investment banking head Joe Nardini explained the market dynamics, stating that this activity will continue and even increase.

According to Nardini’s analytical perspective, Bitcoin miners and AI/HPC (High Performance Computing) infrastructure developers continue to submit competitive bids for megawatt capacity until the end of December. GPU-focused data centers attract tenants with high financial credibility, creating a favorable environment for M&A negotiations.

Continued Energy Shortage: Increase in Megawatt Demand

The high energy requirements for running the Bitcoin BTC $78.51K network and AI applications keep Wall Street’s attention on this sector. Nardini clearly explains that the reason behind the strong tenant portfolios and the continued high levels of rates is the ongoing demand.

After the halving of Bitcoin block rewards, miners faced margin pressure, leading them to adopt GPU-supported facility solutions. This strategic shift coincided with the growth of the AI ecosystem and triggered significant value increases in some mining stocks through 2025. However, a more notable development is that the demand level for data center capacity remains high, with many qualified buyers competing in negotiations.

Inside the Negotiation Table: Valuation Mechanisms

Prices paid per megawatt in data center acquisitions vary widely depending on location quality and energy source reliability. Nardini shares detailed ranges of valuation figures encountered in negotiations:

• Premium locations: $400,000 to $450,000 per megawatt
• Historical levels: Paid prices in past periods ranged from $500,000 to $550,000
• Alternative sites: Offers between $100,000 and $250,000 in less preferred areas

This broad price spectrum reflects not only location risk factors but also the strategic importance that buyers assign to energy sources. In some cases, tenants are willing to make upfront payments before the completion of the facility, indicating how scarce the desired megawatt capacity is.

Expansion of the Buyer-Seller Ecosystem

Data center agreements are no longer limited to crypto-focused players. According to Nardini, the parties involved at the negotiation table have become quite diverse:

Buyers: Hyperscale cloud infrastructure providers (large tech companies), AI development firms, Bitcoin miners, and industrial companies seeking energy solutions

Sellers: Traditional industrial facility owners, developers converting old office blocks, and crypto-focused organizations with direct data center capacity

Nardini recently noted that a 160-year-old factory facility is being evaluated within this ecosystem; in another case, an old office building has been converted into modular power units (30 megawatt modules) and is currently seeking growth financing. This dynamic means asset owners are experiencing strategic expansion at levels never seen before.

Final Checkpoint: Risk Environment and 2026 Outlook

Despite increasing concerns about energy and data center capacity, Nardini predicts that in 2026, risk assets will continue to be supported if interest rates decrease. A simple test he suggests for managers is a gauge of current market health: Are there tenants? Good tenants? Are they achieving high rental rates?

The answer to all these questions is “yes.”

Most negotiation discussions remain consistent: demand still exists. Hut 8’s recent 15-year, $7 billion agreement with Fluidstack for 245 megawatts of IT capacity at the River Bend campus is the clearest indicator of this. Such investments provide developers with higher valuation multiples and attractive financing conditions.

Closing: Strength of Key Indicators

Nardini’s conclusion is clear and optimistic: The demand for energy and GPU-based high-performance computing data center capacity continues uninterrupted. Data center developers are demanding from multiple creditworthy tenants at high rates, keeping the fundamental economic parameters of the business solid.

Buyers have not reduced their demand for energy sources, and sellers continue to initiate new projects after securing appropriate valuations for their assets. In this context, Nardini’s final comment is concise and meaningful: “Although AI trading seems to have ended in December 2025, it is still active and operational as of today.”