The real reason behind the data center trading boom: market distortion caused by AI bias that is reshaping the industry landscape and influencing investment trends.

As concerns grow that the artificial intelligence (AI) bubble has burst, trading activity on Wall Street is being supported by a more fundamental phenomenon: the market’s inherent “bias.” The flow of capital and power toward AI and high-performance computing (HPC) is rapidly transforming the data center transaction market, indicating not just a simple trend change but a restructuring of the industry.

B. Riley Securities’ head of investment banking, Joe Nardini, recently sent a clear signal in an interview. “Bitcoin miners and AI/HPC developers are continuously competing for power. GPU-centric data center capacity is consistently attracting creditworthy tenants.” This means that the market conditions at the end of 2025 remain valid into early 2026.

Power Demand Bias: A Major Shift from Bitcoin to AI·HPC

After the Bitcoin halving reduced mining rewards by half, miners faced severe margin pressures. Despite Bitcoin’s current price nearing $77,280, existing mining companies have chosen to “re-bias” by gradually shifting toward hosting AI and HPC hardware.

While this phenomenon has driven a surge in Bitcoin mining-related stocks this year, the more noteworthy aspect is the underlying market logic. Nardini explains, “M&A activity continues because people still need electricity.” If Bitcoin miners’ power demand remains “significant,” then demand in the AI and HPC sectors is “even greater,” in his assessment.

Data center clients are reporting ongoing demand for GPU-ready facilities. This is not just a trend but evidence of a market “structural bias,” meaning it is overshadowing demand from other industries rather than just one.

$400,000–$500,000 per Megawatt: Data Centers as Energy Assets, Not Real Estate

The most notable recent trend in the transaction market is a shift in asset valuation methods. Moving away from traditional real estate perspectives, a revaluation as pure “energy assets” is underway.

In a competitive environment with high-quality power and suitable locations, the dollar value per megawatt (MW) is evaluated as “very attractive.” According to Nardini, one process has been valued at over $400,000 per MW, with negotiations potentially reaching $450,000 per MW. There have also been cases in the past where deals closed at $500,000–$550,000 per MW.

Interestingly, demand still exists for assets in less favorable locations or market conditions. In such cases, bids at “lower prices” of $100,000–$250,000 per MW sometimes appear. However, these are still significantly higher than past levels.

Tenants Present, Strong Demand… Transactions Continue

Despite recent market softness, developers are securing strong demand from multiple tenants with excellent creditworthiness. This indicates that the market’s fundamental indicators remain healthy.

Nardini provided concrete examples demonstrating market resilience. Hut 8 recently signed a 15-year, $7 billion lease with Fluidstack, and the stock price surged up to 20% after the announcement. Another example involves an individual seller converting a 160-year-old industrial facility into an energy asset, receiving NDA requests from about 25 potential buyers, including Bitcoin miners, hyperscalers, and AI companies.

A private client case is also interesting. They are converting an old office building into modular power capacity, aiming to build “30 MW units at a time,” and are seeking additional funding for expansion. In one negotiation, the tenant was even prepared to prepay rent before completion. This vividly illustrates how much capacity is still in short supply.

2026 Risk-On Environment: Why AI Bias Will Persist

Looking ahead to 2026, Nardini expects that falling interest rates will create a favorable environment for risk assets. This “risk-on environment” is likely to further energize deal-making in his industry.

His optimism is based on clear evidence: actual operational improvements reported by management. Tenants are present, prices remain strong, and if one customer doesn’t choose a particular option, “someone else will,” reflecting strong demand.

If developers are unable to lease their assets or obtain the desired prices, that will be a concern. But currently, there are no such signals. His summary: “The backbone of the business remains solid.”

The market continues to have high demand for energy assets, and sellers are receiving good valuations for their properties. This indicates that the market bias toward AI and HPC is structural and not affected by short-term volatility. “AI data center transactions are still actively ongoing.”