It had been a few years since I last attended PTC, and I’ll admit I was a bit skeptical about making the trip to Hawaii. However, with client business on the agenda this year, I decided to attend — and I’m glad I did. This was the best PTC I’ve experienced to date. Below are a few key observations from the conference.

Bragowatts! This is my new favorite word. It’s in reference to projects where speculators and developers make claims to having power delivered or planned to their site. Lots of aspiring developers and sellers were in attendance but it was in more than a few cases that they believed something that isn’t necessarily true. As we have written in the past, to value something as powered land, you must have both the entitlements and the committed power. Short of that, it’s not yet powered land.

Demand for data center footprint is still very strong. The hyperscalers are firmly committed to AI and you need data center footprint to execute AI initiatives. Even with record construction pipelines, true deliverable capacity — with firm power, zoning,  and schedule certainty — remains structurally undersupplied. Given the low vacancy — approximately two (2) percent in the U.S., pre-leasing and forward commitments remain the norm rather than the exception, particularly for AI-driven load.

Delivery risk has increased. The required capital is significantly more, and the power purchase agreements have more teeth. Consequently, we probably will see less speculators as the barriers to entry are higher than they have ever been. Perhaps as a consequence, we will see more grid power released in the next few years.

M&A is top of mind. Nearly every investment banking team was present at PTC — I can’t recall when that was the case. Lots of deals are being discussed for 2026. I suspect there will be a lot of deal activity given single-digit vacancy, available capital, tangible demand, and a strong preference for portfolio creation versus single asset investment.

Grid power remains the preference, but the market recognizes that alternative energy sources are in play. Despite near-term power constraints, hyperscalers and institutional investors continue to strongly prefer utility-backed grid power for long-term scalability and financing. While alternative solutions like gas are being deployed, behind-the-meter gas solutions are proving more complex than initially assumed, with permitting, supply chain, emissions compliance, and lender acceptance becoming gating items.