ArcLight Capital Partners has acquired Advanced Power, marking a significant move in North America’s power infrastructure landscape. The deal includes an initial $1 billion equity commitment, with ArcLight pledging over $5 billion in investments up to 2030. This initiative aims to catalyse more than 20GW of new energy projects, with a focus on enhancing AI and data centre capabilities across the continent.
The partnership is poised to drive economic growth, with the potential to create up to 80,000 jobs, including 10,000 permanent roles. This focus on modernising energy systems comes at a critical juncture, as utilities and tech industries seek reliable power sources amidst growing demand.
Advanced Power brings substantial assets to the table, with over 12GW of conventional and renewable energy projects and more than 10GWh of energy storage initiatives. These are crucial for powering large-scale data centres. Combined with ArcLight’s operating portfolio of 26GW across various electric infrastructures, the partnership is well-positioned to meet domestic electricity demands, equivalent to those of more than 11 million homes.
Tom Spang, CEO of Advanced Power, emphasised the strategic alignment between the two companies. “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,” Spang stated. “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.”
ArcLight’s experience includes managing assets totalling over 65GW since its inception in 2001, with a portfolio valued at above $80 billion. The firm has a proven track record in overseeing large electric and gas transmission networks.
Legal representation for ArcLight is provided by Latham & Watkins, while Morgan Stanley acts as financial advisor. Sidley Austin is offering legal counsel for Advanced Power. Specific financial details of the transaction remain private.
This strategic acquisition and investment plan could significantly shape the future of North America’s power infrastructure. By focusing on low-carbon solutions and job creation, the partnership aims to address critical energy demands while fostering economic growth. The move underscores the increasing intersection of energy and technology sectors, particularly in supporting the burgeoning AI and data centre industries. As the energy landscape evolves, such collaborations may set a precedent for future developments in sustainable power infrastructure.