ADQ And Energy Capital Partners Form $25 Billion Partnership For Power Generation In The USA

ADQ, a sovereign investor focusing on infrastructure and global supply chains, has partnered with Energy Capital Partners (ECP), the largest private owner of power generation in the USA. This 50-50 collaboration aims to develop new power generation and energy infrastructure. The partnership will address the increasing power demands of data centers, hyperscale cloud companies, and other energy-intensive sectors.

The joint venture will focus primarily on projects within the USA, with some capital potentially directed towards select international markets. The partners plan to invest over USD 25 billion across 25 GW of projects. An initial capital contribution of USD 5 billion is expected from both parties. A skilled management team will lead the venture, ensuring swift project development and commissioning.

According to the International Energy Agency (IEA), global electricity consumption is rising rapidly due to increased demand from data centers and industrial electrification. In the USA, electricity demand is projected to grow significantly, adding an amount equivalent to California's current consumption over three years. Data center power demand is expected to rise by 50% by 2027 and could increase by 165% by decade's end.

The US Department of Energy reports that data center load growth has tripled in the past decade and may double or triple again by 2028. This surge is driven by AI expansion and high-density data centers. As a result, there is a pressing need for new power generation resources to meet these demands.

ADQ's Minister of Investment, Mohamed Hassan Alsuwaidi, highlighted the opportunities presented by AI's growth: "The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers." He emphasized ADQ's role as an active investor in critical infrastructure, capable of building long-term partnerships to address evolving challenges in electricity supply.

ECP’s Founder Doug Kimmelman noted: "AI will be a major driver of US economic and job growth over the coming decade, but not unless ample new electricity supplies are developed." He stressed that significant capital investment with a long-term perspective is essential for developing new power generation resources in response to tightening supply/demand dynamics in US power markets.

Infrastructure Expertise

ADQ manages over 25 portfolio companies across more than 130 countries, focusing on key sectors like energy, utilities, food, healthcare, life sciences, transport, and logistics. Infrastructure investments have been central to ADQ’s mission since it received its first asset transfers from Abu Dhabi’s government.

ECP has been a leading equity and credit investor in energy transition infrastructure since its founding in 2005. Its portfolio includes investments in various technologies such as natural gas, geothermal, hydroelectricity, solar power, wind energy, battery storage, and waste-to-energy solutions across all major US power markets.

This partnership between ADQ and ECP aims to establish leadership in power generation for America's growing economy through greenfield development and expansion projects. By combining their expertise in infrastructure investments and energy platforms, they seek to support industries' increasing power needs while promoting economic progress.

With inputs from WAM