ADQ, an Abu Dhabi-based investment and holding company, and Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the United States, have entered into an agreement to establish a 50-50 partnership in new build power generation and energy infrastructure.
Combining ADQ’s expertise in infrastructure investment with ECP’s premier energy investment platform in electrification and power and renewable generation, the partnership aims to service the growing power needs of data centres, hyperscale cloud companies, and other energy-intensive industries. As the continuity and quality of power supply is crucial for these high-growth industries, the need for captive power plants that are in proximity is often a pre-requisite. The partnership is focused on meeting these needs over the long-term, with its mandate including greenfield development, new build, and expansion opportunity projects that will establish it as a leader in power generation for a growing American economy.
The partnership’s primary geographic focus will be the US. A portion of the capital may also be allocated toward opportunities in selected international markets. The partners plan to make total capital investments of more than US$25 billion across 25 GW worth of projects. The combined initial capital contribution from the partners is expected to amount to US$5 billion.
Led by a highly experienced management team with strong expertise in power and infrastructure development and operations, the joint venture will begin pursuing development opportunities immediately. Specialised teams in development and operations will ensure rapid origination and efficient commissioning of relevant projects.
According to a recent report by the International Energy Agency (IEA), the world’s electricity consumption is forecast to rise at its fastest pace in coming years, driven in part by the growing needs of data centres and industrial electrification. In the US, growing electricity demand is expected to add the equivalent of California's current power consumption to the national total over the next three years.
It is anticipated that global power demand from data centres will increase by 50 per cent by 2027 and by as much as 165 per cent by the end of the decade, driven by the expansion of AI and high-density data centres. The US Department of Energy estimates that data centre load growth has tripled over the past decade and is projected to double or triple by 2028.
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said: “The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centres and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring secure, stable, and commercially competitive electricity supply. As an active investor with a sharp focus on critical infrastructure and a proven capability in building long-term partnerships, we are in a prime position to help address these shifting structural dynamics. Our partnership with ECP allows us to invest meaningfully in generation and related infrastructure assets that support accelerating demand for power, promoting the progress of these industries and helping to future-proof economies.”
Doug Kimmelman, ECP’s Founder and Executive Chairman, said: “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. We are honoured to build an investing partnership with ADQ to provide the electricity resources demanded by the rapidly growing AI data centre sector, where the build out of new power generation resources or ‘additionality’ in the US will require significant, patient capital with a long-term horizon. Given the tightening supply/demand dynamics in US power markets, new generation capacity will be needed and our focus in this partnership will therefore primarily be on new build natural gas fired power generation assets in scale to meet the needs of hyperscalers on a timely basis.”
