Power 2026

Neel Somani

Research

46 Pages

A former Citadel quant who covered power & gas released a primer on power pricing & data centers.

Key Takeaways

Bundled compute premiums: Contracts bundling electricity with processing hardware currently fetch massive valuations near $5,000 per megawatt hour.
Base infrastructure valuations: Agreements providing buildings and cooling capacity without computing hardware imply costs of $271 per megawatt hour.
Strategic exit optionality: Innovative power purchasing agreements now feature 90 day cancellation windows to help parties navigate volatile pricing.
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