The high-multiple valuation game of AI data centers: Why energy demand remains an investment hotspot

Although there are voices expressing concerns that the artificial intelligence bubble has already burst, trading activity on Wall Street has not come to a halt because of it. According to market observations from B. Riley Securities’ head of investment banking, the core issue lies in a fundamental: the appetite for electricity capacity among Bitcoin miners and AI/high-performance computing (HPC) data center developers remains strong. Even into the end of 2025, these participants are still aggressively competing for megawatt-scale energy supplies, driving ongoing mergers and acquisitions.

Currently, Bitcoin prices have risen to $79.04K, while demand for data center infrastructure remains high due to multiple needs. Data centers with high GPU capacity are attracting several creditworthy tenants, and transaction prices are also quite resilient. This phenomenon reflects genuine market demand rather than a speculative bubble.

Investment Multiples in the Energy Race: From $100K to $550K per Megawatt

In competitive scenarios with abundant energy and prime locations, the value per megawatt of electricity (a key multiple metric for evaluating energy assets) exhibits astonishing high multiples. Some transactions have been valued at $400,000 to $450,000 per megawatt, reflecting a market premium for high-quality energy assets. In more extreme cases, prices have even reached $500,000 to $550,000 per megawatt.

However, the market is not monolithic. Facilities in less desirable locations or with less favorable market conditions are valued at significantly lower multiples, typically between $100,000 and $250,000 per megawatt. This indicates that buyers need energy capacity but will heavily discount based on geographic location and market quality.

This valuation disparity clearly demonstrates the differentiated pricing mechanism in the energy asset market—premium locations can command multiples over five times those of typical locations.

Who is Buying? The Triangular Competition Among Mega Tech Companies, AI Startups, and Miners

The pool of buyers for data center capacity has expanded to include hyperscalers providing cloud infrastructure, AI-focused startups, and Bitcoin miners. Interestingly, the seller side is also evolving rapidly—no longer limited to crypto-native companies, traditional industrial owners are also entering this space.

In one case, a private asset transaction attracted about 25 potential buyers who signed nondisclosure agreements, including miners, hyperscalers, and AI firms. This intense competition indicates that attractive energy assets have become a focal point for all parties.

Traditional industrial facilities are also seeking new life. A 160-year-old industrial building was re-evaluated for its energy advantages despite not being in the most optimal location. Another company is converting abandoned office buildings into modular energy units, rapidly expanding at a pace of 30 MW per unit, and seeking additional financing to further scale up.

In some negotiations, tenants are even willing to pay rent before project completion—this fully reflects the high demand for quality data center capacity.

Industry Restructuring and Valuation Evolution After Bitcoin Halving

Since the Bitcoin halving event, miners face profit pressures. Even with BTC prices approaching or exceeding $100,000, the reduced mining rewards due to halving have forced miners to seek new revenue streams. As a result, many miners are now hosting AI and HPC hardware in existing data centers, a strategic shift that has brought higher valuation multiples and cheaper capital access for some Bitcoin mining companies.

This business model shift explains why, despite increasing concerns about AI prospects, the stock prices of AI infrastructure companies (like CoreWeave) have fallen more than 50% from their June highs, while publicly listed mining companies focused on energy and data centers still attract investor interest. Hut 8 recently signed a 15-year lease agreement with FluidStack valued at $7 billion, covering 245 MW of computing capacity at the River Bend campus, with its stock price rising about 20%, precisely demonstrating market recognition of real business fundamentals.

Can High Multiple Valuations Be Sustained? Market Turning Point in 2026

Looking ahead to 2026, under the assumption of declining interest rates, the investment environment for risk assets may become more favorable. This is a positive signal for M&A activity in this industry. Market participants generally believe that as long as developers can lease their constructed facilities and obtain reasonable rents, demand will continue to support current high multiple valuations.

From actual operational feedback, market signals are clear and consistent: tenants keep flooding in, lease prices remain firm, and if one client does not lease a facility, another will step in immediately. This indicates that as long as supply shortages persist, high multiple valuations of energy assets will be sustained.

The only risk to watch out for is if developers cannot lease their capacity at the prices they need—that would be a concern. But currently, there are no such signals. From the perspective of data center capacity providers, they are benefiting from asset sales at resilient prices; from buyers’ side, demand for energy capacity remains strong. This supply-demand stability further consolidates the foundation for the current high multiple valuation system.

In summary, the core logic of transactions in AI infrastructure and energy assets remains intact: demand exists, quality tenants are genuine, and lease prices are favorable. Supported by these fundamentals, the high multiple valuation system will continue to be a main feature of the 2026 energy data center market.