AI Stocks Tumble, But Wall Street's Billion-Dollar Power Play Is Just Getting Started
Despite a sell-off in AI stocks like Nvidia, Wall Street's M&A market for data centers is booming. An inside look reveals deals valuing power at over $400,000 per megawatt, proving the real AI trade is in infrastructure.
While investors are getting nervous about an AI bubble popping, Wall Street dealmakers are focused on a more fundamental problem: the desperate need for power. According to investment banker of , the fierce demand for energy from AI, high-performance computing (HPC), and Bitcoin miners is keeping the M&A market very much alive, even as tech stocks like and see their valuations slide.
The Real AI Trade: Megawatts, Not Hype
The core logic is simple. "Do clients have demand for the data center capacity they’ve built? Yes. Do they have tenants? Yes. Are they getting good rates? Yes," told CoinDesk, summarizing his conversations with executives. He bluntly stated that as of December 17, 2025, "the AI trade is still alive." The demand for power is so intense that he has seen tenants prepared to prepay rent just to secure a spot in a facility that isn't even completed yet.
This isn't just talk; it's showing up in deal valuations. According to , high-quality sites with viable power are fetching , with some past deals closing as high as . Even distressed or less desirable locations are drawing bids in the range from buyers who simply want the power access.
Bitcoin Miners' Lucrative Pivot to HPC
Bitcoin miners are emerging as key players in this new landscape. Facing squeezed margins after the halving, they are increasingly repurposing their power-hungry data centers to host AI and HPC hardware. This strategic pivot is being rewarded handsomely by the market.
For example, shares of rallied as much as last week after it signed a 15-year, lease with for of capacity. "These companies have been well rewarded with higher valuation multiples and the ability to raise capital at attractive valuations and terms," noted.
For investors, the key takeaway is that the most durable value in the AI revolution may not be in the volatile application layer, but in the scarce infrastructure that powers it. Access to megawatts is becoming the ultimate moat, creating a tangible investment thesis beyond the market's short-term HYPE cycle.
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