Key Takeaways
- Sector: Energy Infrastructure & Renewables.
- Geography: United States.
Analysis
ArcLight Capital Partners has acquired Advanced Power, a leading power infrastructure developer, with an initial $1 billion equity commitment to build new infrastructure. Over the next five years, the partnership aims to invest in excess of $5 billion and develop over 20 GW of capacity to support North America’s growing AI and data centre demand.
Advanced Power’s current portfolio includes more than 12 GW of thermal and renewable power projects and over 10 GWh of energy storage, providing scalable capacity for more than 20 major data campus deployments. ArcLight brings its existing 26 GW operating portfolio together with Advanced Power’s development track record to form one of the largest power infrastructure platforms in the U.S.
The joint venture is designed to deploy modern, low-carbon power infrastructure capable of meeting critical needs of utilities, hyperscalers, and data centre developers, and is expected to generate up to 80,000 jobs, including ~10,000 permanent positions.
Since 2001, ArcLight has built the largest private power infrastructure portfolio in North America, owning or operating over 65 GW of assets and 47,000 miles of transmission lines—totaling nearly $80 billion in enterprise value. The firm employs an operationally intensive, value-add strategy across power, renewables, batteries, transmission, and gas infrastructure.
Similar recent deals by ArcLight include:
- Acquisition of the Middletown Energy Center, a 484 MW combined‐cycle gas plant in Ohio serving AI and data centre demand in PJM markets.
- $500 million minority investment by an ADIA subsidiary in the AlphaGen 11 GW power infrastructure portfolio.
- Acquisition of Kleen Power Systems (620 MW) to support electrification‐driven demand in the New England region.