ADQ and Energy Capital Partners to Launch $25B Partnership for Data Center Power Generation

ADQ, one of the premier sovereign investors in critical infrastructure and global supply chains, has joined forces with Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the US, to form a 50-50 joint venture to develop new-build power generation and energy infrastructure opportunities. It will meet the increasing power demands of data centers, hyperscale cloud companies, and other high-energy sectors.

Addressing the Needs of High-Growth Industries

A stable and continuous power supply is essential since high-growth sectors such as AI, data centers, and electrification are growing quickly. This alliance will address the increasing demand for captive power plants locally, providing stable energy to energy-intensive industries. The joint venture will emphasize greenfield developments, expansion, and construction of new power facilities to dominate US power generation.

Capital Investment and Project Scope

The partnership will invest over $25 billion across 25 GW of projects, focusing primarily on the US market. The partnership may direct a portion of the capital toward strategic international markets. The joint venture's initial capital contribution will amount to $5 billion, with plans to pursue development opportunities immediately. The partnership will rely on its highly experienced management team, specializing in power and infrastructure development, to execute projects efficiently.

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Focus on AI and the US Energy Market

His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, said, "The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring secure, stable, and commercially competitive electricity supply."

Growth in Power Demand

The International Energy Agency (IEA) expects global electricity consumption to grow at its fastest rate in years, driven by the rising demand from data centers and industrial electrification. In the US, electricity demand will increase significantly, adding enough to match California's current power consumption in three years. Experts predict data centers will increase power demand by 50% by 2027, rising 165% by by the end of the decade due to AI.