ArcLight Capital Partners has acquired Advanced Power and plans to invest billions of dollars in North American power infrastructure to support the growth of artificial intelligence and data centres.
The infrastructure fund manager announced an initial $1bn (€850m) equity commitment as part of its acquisition of Advanced Power and said the combined entities had the potential to invest more than $5bn of equity over the next five years to enable over 20GW of new power.
Advanced Power’s existing late-stage power projects in the US include over 12GW of conventional and renewable projects and more than 10GWh of energy storage. ArcLight currently holds a 26GW operating power portfolio and has expertise in electric infrastructure across power, renewables, batteries, transmission, strategic gas and digital power.
With a pipeline of over 20GW of identified, advanced, new generation capacity, the combined development portfolio of ArcLight and Advanced Power becomes one of the largest in the US.
Angelo Acconcia, partner at ArcLight Capital Partners, said: “Accelerated access to power infrastructure has become the critical bottleneck to enabling and meeting data centre and AI growth goals and electrification needs at federal and state levels. There is an urgent need for new large-scale, sustainable power solutions.
“Together, ArcLight and Advanced Power are well positioned to help address this need and enable strategic solutions to accelerate, deliver and manage large-scale customised power infrastructure and help provide capacity, reliability, affordability and sustainability to the North American power grid.”
Tom Spang, CEO of Advanced Power, said: “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.
“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-centre developers and hyperscalers.”
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