Calculate True Returns with the Power-Adjusted Yield (PAY) Index. Integrate GPU revenue volatility, power risk, and interconnection timelines into your underwriting.
"PAY is healthy but requires disciplined leverage and ongoing monitoring of power costs."
The paradigm has shifted. Power availability has replaced traditional real estate metrics as the primary determinant of project feasibility and valuation. In Dallas, the speed of energization now dictates your IRR.
While Pre-Development financing is seeing spreads of 475-700 bps from private credit funds, Hyperscale Development debt is tightening to 300-400 bps. The delta? Grid certainty.
Liquidity premiums now depend on your Time-to-Power Score (TTPS). Projects with >36 month queues in PJM are trading at distressed discounts vs. 18-month interconnects in West Texas.
Lenders are tightening covenants. For land/pre-dev deals, LTC leverage is capped at 50-55%without firm interconnection agreements.
Don't rely on static models. Use the Power-Adjusted Yield calculator to stress-test your thesis against curtailment events, GPU residual value drops, and construction delays.
Access the PAY Calculator to adjust input assumptions (CAPEX, Power Cost, GPU Mix) for Dallas.
Real-time grid congestion and curtailment risk by zone
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