Profitable Investments in Energy Data Centers Remain Hot in 2026

The narrative of collapse in the artificial intelligence (AI) sector does not reflect the operational reality of profitable investments in data infrastructure, according to Joe Nardini, head of investment banking at B. Riley Securities. While the technology market experienced significant corrections in the first months of 2026, demand for GPU-focused data center capacity remains insatiable, creating robust opportunities for profitable investments in energy and high-performance computing (HPC).

“Merger and acquisition activity continues at a rapid pace because people still need energy,” Nardini said in a recent interview. His insights are based on dozens of negotiation processes that reveal a bifurcated market: while some assets with problematic locations receive conservative offers between $100,000 and $250,000 per megawatt, top-tier facilities with superior quality energy and favorable climate for profitable investments reach valuations between $400,000 and $550,000 per megawatt.

Why Profitable Investments in Energy Capacity Continue to Attract Massive Demand

Bitcoin miners BTC $77.31K and AI/HPC developers have not reduced their competition for megawatts, despite price fluctuations and market skepticism. This dynamic supports a thesis contrary to the “bubble burst” narrative: the underlying demand remains unwavering.

According to Nardini, the pressure on profitable Bitcoin mining investments after the halving of rewards in 2024 forced operators to diversify their revenue streams. The result was a strategic migration to hosting AI and HPC hardware in their existing data centers, transforming several operations into multi-revenue enterprises. This adaptive strategy not only safeguarded margins but also created new opportunities for profitable investments, evidenced by the strong performance of mining stocks during the AI expansion in 2025.

Demand for GPU-ready data center capacity remains “even greater” than traditional mining, with operators reporting consistent occupancy and tenants willing to accept any available space. In at least one transaction Nardini witnessed, a tenant demonstrated willingness to pay rent upfront before the contract was finalized – a clear indication of the persistent scarcity of desirable capacity.

Price Dynamics in Investments: From $400K to $550K per Megawatt

Prices for profitable data center investments vary drastically depending on asset quality. In competitive processes with top-tier energy and viable locations, dollars per megawatt can seem “extraordinarily attractive” to buyers and investors.

Nardini documented transactions priced above $400,000 per megawatt, with potential to reach $450,000, and even previous deals reaching $500,000 to $550,000 per megawatt. These valuations reflect not only the scarcity of quality energy but also the ability of profitable investments to generate multiple revenue streams through different tenants.

On the other hand, sellers of assets in less favorable markets face substantially lower offers, ranging between $100,000 and $250,000 per megawatt. This bifurcation creates a clear decision-making strategy for industrial facility owners: sell to the AI/HPC ecosystem, try to develop capacity internally, or simply serve as energy suppliers with more modest valuations.

Who Are the Buyers in Profitable Infrastructure Investments?

The universe of participants in profitable data center investments has expanded beyond native crypto market players. According to Nardini, buyers include hyperscalers (like Amazon), AI-focused companies, traditional Bitcoin miners, investment funds, and even owners of old industrial facilities who recognize the potential of their assets.

An illustrative example involved a private industrial asset that attracted about 25 potential buyers seeking confidentiality agreements (NDAs), including Bitcoin miners, cloud computing giants, and AI startups. Competition for a single asset indicates the current intensity of the profitable investment market.

Owners of old facilities are now actively evaluating whether to monetize their assets through sale or conversion to modern operations. Nardini cited a client reusing obsolete office structures into 30-megawatt modular units, seeking additional capital for expansion. These scenarios demonstrate how profitable investments can be structured even from infrastructure considered obsolete.

Outlook for 2026: Will Profitable Investments Continue to Be Lucrative?

Looking ahead, Nardini predicts that the environment will continue favoring risk assets if interest rates fall, characterizing 2026 as a “risk-active environment” potentially positive for new profitable investments in the sector.

His outlook is based on a simple operational logic applied to clients: have they built data center capacity? Yes. Do they have tenants occupying these spaces? Yes. Are these tenants of solid credit? Yes. Are they obtaining good rates? Yes. Therefore, demand persists. “Despite recent market corrections, these companies have been well rewarded with high valuation multiples and the ability to raise capital under attractive conditions,” he adds.

The recent 15-year agreement between Hut 8 and Fluidstack, valued at $7 billion for 245 megawatts of capacity at their River Bend campus, reflected this reality by boosting the company’s stock by up to 20% in a single week – a clear validation that profitable investments maintain their appeal even amid uncertainty.

Nardini’s caveat remains precise: if developers fail to lease their capacity or do not achieve the necessary prices, then it would be a moment of concern. However, so far, this dystopian reality has not materialized. Buyers remain eager for energy, sellers find good valuations for their assets, and profitable investments in data centers continue to be hot.

“The demand for data center capacity for energy and AI/HPC remains unwavering. Developers with capacity have demand from multiple tenants with solid credit at attractive rates, keeping the fundamental economics of profitable investments intact,” Nardini concludes. With these operational fundamentals reinforced, the movement of profitable investments in data infrastructure is expected to remain robust through 2026.