Establishing a $25 billion investment collaboration, the Abu Dhabi-based sovereign investor ADQ and Energy Capital Partners (ECP), the biggest private owner of power generating and renewable energy sources in the United States, have announced. This strategic cooperation seeks to build power generating and energy infrastructure to satisfy the rising electricity demand from high-growth, energy-intensive industries such data centres, hyperscale cloud firms, and industrial electrification.
With an initial $5 billion cash infusion from each partner, the alliance will see equal contributions from ADQ and ECP. Targeting investments across 25 gigabytes (GW) of projects, the cooperation will mostly concentrate on the U.S. market and have a possibility to investigate limited prospects in foreign markets.
Combining ADQ’s knowledge of vital infrastructure investments with ECP’s vast experience in energy transition infrastructure would help the alliance be very important in ensuring electricity supply for sectors needing constant, high-capacity power. While ECP has a long history in managing varied energy assets, including natural gas, renewable, hydro, solar, and battery storage, ADQ manages more than 25 portfolio firms spanning 130 countries and operates in critical sectors including energy, utilities, and transportation.
Excellency Against the backdrop of growing electricity consumption driven by artificial intelligence adoption and industry electrification, Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, underlined the relevance of the relationship. He stated, Meeting power needs offers evolving problems for governments worldwide in delivering safe and reasonably priced electricity. ADQ is in a great position to handle these issues since she is an active investor with a strong focus on essential infrastructure.
Doug Kimmelman, ECP Executive Chairman, underlined the need of increasing power generating capacity to enable the fast expansion of artificial intelligence and data centres. He said, New generation capacity will be required considering the tightening supply-demand dynamics in American electricity markets. We will mostly be focused on large-scale natural gas-fired power generation to timely address hyperscale needs.
This cooperation coincides with fast increasing worldwide use of power. The International Energy Agency (IEA) estimates that in 2025 and 2026 worldwide power demand would rise by 4% yearly. A major contributor to this expansion, data centres are predicted to see their power consumption rise by up to 50% by 2027 and additional expansion expected through 2030. Investing in dependable, low-latency electrical infrastructure is essential as artificial intelligence technologies develop since their processing needs are stressing power demand.
With investments concentrated on natural gas-fired power plants as a dependable temporary option alongside renewable energy integration, the cooperation also fits more general worldwide goals of energy transition and electrification. Together, ADQ and ECP seek to meet the rising energy demands of a fast electrified planet, thereby guaranteeing dependable and sustainable power for next generations.
