Banking sources confirmed persistent AI datacenter demand and utilization despite equity market volatility.

Despite mounting fears that the artificial intelligence bubble has popped, Wall Street dealmaking remains robust, according to Joe Nardini, head of investment banking at B. Riley Securities. According to Nardini, demand for power from bitcoin miners remains "huge," but the pull from AI and high-performance computing (HPC) is "even bigger," with data center and mining clients reporting sustained demand for GPU-ready facilities. Megawatts continue to clear at top dollar, as bitcoin miners and AI/HPC developers still bid aggressively for capacity. This persistent demand undercuts concerns about market saturation, with Nardini emphasizing: "M&A work is still ongoing as people still need power."

The strength of demand is evident in recent dealmaking metrics and specific transactions. Hut 8 shares rallied as much as 20% last week after signing a 15-year, $7 billion lease with Fluidstack for 245 megawatts of IT capacity at its River Bend campus. In competitive situations with high-quality power and viable locations, dollars per megawatt valuations appear particularly attractive, with Nardini noting one process involved a valuation of over $400,000 per megawatt, with the potential to reach $450,000 per megawatt depending on negotiations, and prior deals priced as high as $500,000 to $550,000 per megawatt. However, demand for distressed or less desirable locations persists, drawing "lowball" bids of $100,000–$250,000 per megawatt. Buyers now span hyperscalers, AI firms, and bitcoin miners, while the seller universe is expanding beyond crypto-native players to include industrial companies and traditional asset holders.

The geographic and operational diversity of dealmaking reveals new opportunities for asset owners. Nardini has seen processes involving old industrial facilities such as a 160-year-old facility where the primary attraction is power. In one case, a private seller drew interest from roughly 25 prospective buyers seeking NDAs, including bitcoin miners, hyperscalers, and AI firms. This interest is driving a strategic fork: asset owners can either sell to hyperscalers or developers, or attempt to become developers themselves. Nardini cited a private client repurposing older office blocks into modular power capacity, "building 30 megawatt units at a clip," while seeking additional funding to expand. In at least one negotiation, a tenant was even prepared to prepay rent before completion, illustrating how scarce desirable capacity remains.

Looking forward, Nardini maintains a constructive outlook. He argues that if rates fall, the setup favors risk assets in what could be a "risk-on environment" for 2026, which would be positive for dealmaking. His assessment of current operating reality remains bullish: tenants are present, pricing remains strong, and if one customer doesn't take a site, "someone else will." Companies that have already developed capacity report consistent positive signals. "Despite the recent selloff, these companies have been well rewarded with higher valuation multiples and the ability to raise capital at attractive valuations and terms," he said. His principal caveat is straightforward—worry would be warranted if developers cannot lease what they build or secure needed pricing. For now, that scenario is not materializing. "The bones of the business remain intact," Nardini concluded.