The PPA Playbook: How to Negotiate Power Agreements in a Seller's Market

The Power Purchase Agreement (PPA) has become the single most important document in the data center industry. In an era of constrained grids and soaring AI-driven demand, this long-term contract is no longer a simple utility bill; it is a complex financial instrument that can determine the profitability of a billion-dollar facility for the next decade.

In today's seller's market, utilities and energy providers hold immense leverage. A poorly negotiated PPA, filled with seemingly benign clauses, can expose an operator to millions in unpredictable costs and unacceptable risks. This high-level playbook exposes three hidden clauses that destroy value and provides three negotiating levers to reclaim control.