Yeah, side note....I wonder if there's a vulture-type play to be made here.
I know that several data centers are being built in connection with independent generation facilities/projects nearby, subject to Power Supply Agreements with the data center. So, it looks like this: Data Center Delta, LLC (an independent LLC, owned by a larger outfit, or even a partnership/consortium of outfits under outfits) contracts with Generator Company Beta, LLC (an independent LLC, owned by a larger outfit like AEP, or some similar arrangement). The contract calls for Generator Co to construct a 200 MW facility to supply power to Data Center. Now, here in Texas, that generation is also going to be hooked up to the grid, per ERCOT requirements. But its contractual purpose is to provide dedicated power to the data center.
What happens when Data Center goes tits up? In bankruptcy, that PSA with Generator Co is repudiated, and Generator Co no longer has a steady source of revenue that makes the numbers on that facility (financed in part with debt) work. So, independent Generator Co files for bankruptcy as well.
Will there be opportunities to sweep in and acquire these orphan (as in, they no longer have a PSA to support them) generation assets? Because, that asset -- if not overly encumbered by debt (now canceled via the bankruptcy) -- may be a revenue-positive asset as just another generation facility in whatever grid it may be found (ERCOT, MISO, SPP, etc.). Or, will that already be pre-packaged -- the parent co (like AEP) will acquire its own orphan in the bankruptcy process?