🎙️ podcast Analysis December 12, 2025 Odd Lots by Bloomberg

The Infrastructure Trap: Why Data Center Financing Is Creating a Hidden Bubble in 'Powered Land'

Data Center REITs Independent Power Producers Real Estate Development
Tickers
1 Pick
Conviction MEDIUM
Risk Profile 1.4/10 (MODERATE RISK)
Horizon 18-36 months

Executive Summary

A $2.9 trillion data center buildout through 2028 is creating a massive financing puzzle that few investors understand. Baker Botts partner Travis Wofford reveals the critical bottleneck isn't chips or capital—it's 'powered land' with grid connections that take five years to secure. The real alpha lies in understanding that 80% of projects in interconnection queues will never get built, creating scarcity value for the 20% that do. While hyperscalers like Microsoft and Google securitize their dat...

Key Investment Opportunity

Power Infrastructure Over Data Center REITs

The financing complexity Wofford describes creates a classic 'picks and shovels' opportunity. While data center REITs like DLR and EQIX trade at extreme valuations with insider selling, power companies like NRG offer exposure to the same demand drivers at reasonable prices. NRG's ability to provide ...

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Next:
The Great Grid Squeeze: Why Data Centers Will Trigger the Biggest Infrastructure Investment Cycle Since Rural Electrification →

The US electricity grid faces its most dramatic transformation since rural electrification, driven by AI data center…

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