ADQ, a global sovereign investment company, and Energy Capital Partners (ECP), a private power generation and renewables firm in the US, have announced a new joint venture.
The collaboration will focus on constructing power generation and energy infrastructure, with a commitment to invest more than $25bn in projects totalling 25GW to meet the burgeoning electricity demands of data centres and other high-growth sectors.
The 50-50 partnership will leverage ADQ’s infrastructure investment expertise and ECP’s energy investment experience in power and renewable generation. The initiative is set to address the critical need for reliable and quality power supply essential for data centres, hyperscale cloud providers, and energy-intensive industries. The joint venture’s strategic plan includes greenfield development, new builds, and expansion projects primarily in the US, with a portion of the capital earmarked for selected international markets.
With an initial combined capital injection of $5bn from the partners, the joint venture is led by an experienced management team and specialised development and operations teams.
The partnership comes at a time when research indicates a 50% rise in power demand from data centres by 2027, with a potential 165% increase by the end of the decade, as artificial intelligence and high-density data centres expand. The US Department of Energy has noted that data centre load growth has tripled over the past decade, with expectations to continue doubling or tripling by 2028.
ADQ managing director and group CEO Mohamed Hassan Alsuwaidi 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 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.”
