ADQ, an Abu Dhabi-based sovereign investor, announced that it is investing over $25 billion to supply power to data centers in the U.S. in partnership with U.S. private equity firm Energy Capital Partners (ECP).
ADQ and ECP entered into an agreement to establish a 50-50 partnership in new build power generation and energy infrastructure. Their partnership aims to “service the growing power needs of data centers, hyperscale cloud companies and other energy-intensive industries,” said ADQ.
The partnership’s primary geographic focus will be the U.S., where the partners plan to make total capital investments of more than $25 billion across 25 GW worth of projects. The combined initial capital contribution from the partners is expected to amount to $5 billion. A portion of the capital may also be allocated towards opportunities in other international markets.
The deal’s announcement coincides with the visit of Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and UAE National Security Adviser, to the U.S. In a meeting with President Donald Trump, Sheikh Tahnoon affirmed the UAE’s commitment to strengthening economic ties with the U.S. by expanding partnerships and accelerating investments in key sectors like AI, technology, infrastructure and healthcare.
Meeting long-term power supply needs
As the continuity and quality of power supply are crucial for these high-growth industries, the need for captive power plants that are in proximity is often a pre-requisite. Therefore, ADQ and ECP’s partnership seeks to meet 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 acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring a 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,” stated Mohamed Hassan Alsuwaidi, managing director and group CEO of ADQ.
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. Specialized teams in development and operations will ensure rapid origination and efficient commissioning of relevant projects.
“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,” Alsuwaidi added.
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Global power demand from data centers to grow 50 percent by 2027
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 recent years. This surge is in part driven by the growing need for data centers and industrial electrification.
In the U.S., a strong increase in electricity demand is expected to add the equivalent of California’s current power consumption to the national total over the next three years.
Recent research forecasts that global power demand from data centers will increase by 50 percent by 2027 and by as much as 165 percent by the end of the decade, driven by the expansion of AI and high-density data centers. The U.S. Department of Energy estimates that data center load growth has tripled over the past decade and is projected to double or triple by 2028.
“AI will be a major driver of U.S. economic and job growth over the coming decade, but not unless ample new electricity supplies are developed. Given the tightening supply/demand dynamics in U.S. power markets, new generation capacity will be needed and our focus in this partnership will therefore primarily be on newly built natural gas-fired power generation assets in scale to meet the needs of hyperscalers on a timely basis,” noted Doug Kimmelman, ECP’s founder and executive chairman.
