Abu Dhabi: ADQ and Energy Capital Partners (ECP) have announced a groundbreaking agreement to establish a $25 billion investment partnership focused on new build power generation and energy infrastructure in the United States. The partnership, structured as a 50-50 venture, aims to address the increasing power needs of data centers, hyperscale cloud companies, and other energy-intensive industries.
According to Emirates News Agency, the collaboration leverages ADQ's expertise in infrastructure investments and ECP's capabilities in electrification, power, and renewable generation. The joint venture seeks to provide critical power infrastructure, including captive power plants, necessary for industries where reliable and high-quality power supply is essential. The partnership's mandate encompasses greenfield development and expansion projects, positioning it as a leader in power generation for the expanding American economy.
The partnership's primary focus will be on projects across the USA, with potential capital allocations for select international markets. The partners plan to invest over $25 billion to develop 25 GW worth of projects, with an initial capital contribution of $5 billion.
Led by an experienced management team, the joint venture is set to immediately pursue development opportunities. The collaboration's specialized teams in development and operations are poised to ensure the rapid origination and efficient commissioning of projects.
According to a recent report by the International Energy Agency (IEA), global electricity consumption is projected to rise at an unprecedented pace, driven by the burgeoning needs of data centers and industrial electrification. The USA expects a significant increase in electricity demand, akin to adding California's current power consumption to the national grid within the next three years.
Research forecasts indicate a 50 percent rise in global power demand from data centers by 2027, potentially surging by 165 percent by the decade's end, fueled by the growth of AI and high-density data centers. The US Department of Energy predicts that data center load growth will continue to escalate, potentially doubling or tripling by 2028.
Mohamed Hassan Alsuwaidi, ADQ's Managing Director and Group CEO, emphasized the opportunities presented by AI's acceleration and societal adoption. He highlighted ADQ's strategic position to invest in critical infrastructure and support the power needs of data centers and hyperscalers, contributing to economic progress and future-proofing economies.
Doug Kimmelman, ECP's Founder and Executive Chairman, stated the partnership's focus on developing new power generation resources to meet the needs of the rapidly growing AI data center sector in the US. He noted the importance of new generation capacity, particularly natural gas-fired power, to meet tightening supply/demand dynamics.
ADQ oversees a diverse portfolio across more than 130 countries, focusing on sectors vital to Abu Dhabi's economy, including energy, utilities, and transport. ECP, founded in 2005, has established itself as a leading investor in energy transition infrastructure, with a robust portfolio spanning various power generation technologies.