ArcLight Capital Partners announced an initial $1 billion equity commitment to construct new power infrastructure, along with the acquisition of Advanced Power, a prominent power developer and manager established in 2000. In order to facilitate the expansion of North America’s AI and data center infrastructure and to allow over 20 gigawatts (GW) of new electricity, the alliance has the potential to spend over $5 billion in equity over the next five years.
One of the top platforms for power infrastructure solutions is produced by the investment and collaboration. The collaboration is well-positioned to handle the power sector’s intricate and expanding capacity requirements and expedite “time to power” by implementing cutting-edge, low-carbon power infrastructure. This infrastructure is necessary to increase grid dependability and satisfy the expanding demands of utilities, data center developers, and hyperscalers. Up to 80,000 jobs might be created by the agreement over the next five years, with about 10,000 of those positions possibly becoming permanent.
More than 20 big data center campuses may be served by Advanced Power’s current late-stage power projects in the United States, which comprise more than 12 GW of conventional and renewable projects and more than 10 GWh of energy storage projects. This is sufficient to offer dependable, rapid, large-scale power infrastructure. ArcLight’s current 26 GW operating power portfolio and electric infrastructure expertise across power, renewables, batteries, transmission, strategic gas, and digital power are combined with Advanced Power’s substantial development expertise, power development track record, and strategic industry relationships.
ArcLight & Advanced Power’s development portfolio is among the largest in the United States, with a pipeline of more than 20 GW of identified, advanced, new generating capacity ready for development. This pipeline has the capacity to power more than 11 million households.
“Accelerated access to power infrastructure has become the critical bottleneck to enabling and meeting data center and AI growth goals and electrification needs at federal and state levels. There is an urgent need for new large-scale, sustainable power solutions,” stated Angelo Acconcia, Partner at ArcLight. “Together, ArcLight and Advanced Power are well positioned to help address this need and enable strategic solutions to accelerate, deliver and manage large-scale customized power infrastructure and help provide capacity, reliability, affordability and sustainability to the North American power grid.”
“Advanced Power has a long development history and is committed to bringing safe, reliable power infrastructure to communities, while creating value for those associated with our projects,” stated Tom Spang, CEO of Advanced Power. “Finding a partner and investor aligned with these core principles was imperative, and ArcLight shares decades of complementary expertise built on strong relationships. These combined resources and deep connections throughout the energy sector enable us to deliver large-scale power solutions to markets, utilities, data center developers, and hyperscalers.”
With an enterprise value of more than $80 billion, ArcLight has owned, controlled, or operated more than 65 GW of assets and 47,000 miles of gas and electric transmission infrastructure since 2001. ArcLight is in a strong position to provide the cutting-edge and specialized electric infrastructure solutions needed by AI and data center power requirements because to its extensive industry expertise and internal operational and technical capabilities. ArcLight now oversees North America’s biggest portfolio of private electricity infrastructure.
The private transaction’s financial details were not made public. ArcLight is being represented by Latham & Watkins LLP. Advanced Power has Sidley Austin LLP as its legal counsel and Morgan Stanley & Co. LLC as its financial advisor.
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