Workin' The Lats: Nebius Announcement Puts Regulatory Overhang in the Spotlight

Research evidence excerpt

Workin' The Lats: Nebius Announcement Puts Regulatory Overhang in the Spotlight

Energy | Power & Utilities

May 13, 2026

Nicholas Amicucci, CFA Workin' The Lats: Nebius Announcement

212-812-2931

nicholas.amicucci@evercoreisi.com Puts Regulatory Overhang in the Spotlight

Sharon Wang for IPPs

212-653-8999 Earlier this morning, Nebius (not covered) reported its 1Q26 results and

Sharon.Wang@evercoreisi.com

announced a ~1.2GW power and land deal for a new owned AI factory

at a site in Pennsylvania. This announcement has put meaningful

pressure on the IPPs, especially those with a higher concentrated

exposure within the PJM (CEG and TLN). Six months ago, this

could have been viewed as a positive development for the IPPs

but today the IPPs are under pressure to formalize PPA

agreements from “meaningful discussions” to inked contracts,

which we believe is less about price and more centered around

duration. All through the past earnings season, the script for potential

PPAs in the PJM was the same: “clarity is not necessary to execute a

deal but it certainly would help,” but then the market received news

of Hut 8 (not covered) executing a 15-year PPA (HERE) and now a

deal announcement (of size, 1.2GW) from another former bitcoin

mining company, in Nebius. While the duration and generation type

of the power portion of the Nebius announcement is unknown, the

announced deal falls within its “contracted power” data center footprint,

which it categorizes as capacity that been secured by land and

contracted power commitments (HERE), which could take the form of

its islanded approach (like its Vineland, NJ project HERE) or be

interconnected to the grid. Importantly, we believe this highlights not

only the need for incremental clarity in the PJM but also the commercial