Global Power Play: ADQ and ECP Target 25GW Energy Push for Data Centers
ADQ and Energy Capital Partners Launch $25 Billion US Venture to Power Data Centers and Fuel AI-Driven Growth.
In a move poised to redefine the energy infrastructure landscape, Abu Dhabi’s sovereign investment powerhouse ADQ has joined forces with US-based private equity giant Energy Capital Partners (ECP) to form a landmark $25 billion partnership. The transatlantic venture, structured as a 50-50 collaboration, is designed to address one of the most pressing demands of the digital era: powering the burgeoning data center and hyperscale cloud sectors, primarily in the United States, with sights set on select international markets.
At the heart of the partnership is a commitment to developing 25 gigawatts (GW) of new power generation and energy infrastructure projects. The venture is set to make an immediate impact, with an initial combined capital injection of $5 billion.
The rise of artificial intelligence, cloud computing, and industrial electrification is triggering unprecedented electricity consumption globally. According to projections from the International Energy Agency (IEA), global data center energy demand could increase by up to 165% by the end of the decade. In the US alone, power needs are forecasted to rise by an amount equivalent to California’s current electricity consumption within just three years.
“The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers,” commented Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ. “Our partnership with ECP allows us to invest meaningfully in generation and infrastructure assets that support accelerating demand for power, promoting the progress of these industries and helping to future-proof economies.”
ADQ, with a portfolio spanning over 25 companies across 130 countries, has positioned infrastructure investment as a core pillar of its global strategy. Meanwhile, ECP, established in 2005, is recognized as the largest private owner of power generation and renewable assets in the US, boasting control of over 83GW of power capacity.
Doug Kimmelman. Founder and Executive Chairman of ECP
Doug Kimmelman, Founder and Executive Chairman of ECP, underscored the significance of the venture: “AI will be a major driver of US economic and job growth over the coming decade, but not unless ample new electricity supplies are developed. Our focus will be on scalable, natural gas-fired power generation assets that can meet the surging needs of hyperscalers and data-driven industries in a timely fashion.”
While the joint venture’s primary focus will be on the US market, both partners have left room for strategic investments in select international markets. The announcement comes amidst intensifying UAE-US economic collaboration, highlighted by recent high-level meetings, including discussions on AI and infrastructure development between UAE leaders and US officials.
As the digital economy’s appetite for reliable and sustainable energy grows, this $25 billion partnership not only aligns with current market dynamics but also sets a precedent for cross-border collaborations between sovereign wealth and private equity leaders.
