Powering Up Europe: Datacenter Economics and the Rise of DC Infrastructure Services

DC connection points currently worth c.€20 bn for the sector. We estimate the European Utilities in our coverage currently own c.25 GW of connection points (CPs) to the power grid, a key prerequisite for datacenter development. Based on recent transactions, these assets are worth c.€20 bn. We simulate a range of conversion rates for these CPs and conclude that, for Solaria monetizing their grid access could ultimately add c.45% to share prices. PPC, Drax, Fortum and RWE also offer meaningful exposure to this theme. We simulate power agreements from power generation. We simulate contracts between datacenters and different sources of power generation;