ArcLight Capital Partners has acquired Advanced Power and announced an initial $1bn equity commitment aimed at expanding North American power infrastructure.
The move is set to catalyse more than 20GW of new energy projects, bolstering AI and data centre capabilities across the continent.
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ArcLight has also committed to invest more than $5bn up to 2030 to accelerate North America’s AI and data centre growth via modern, sustainable power infrastructure.
The ambitious initiative will enhance low-carbon power infrastructure and drive economic growth by creating up to 80,000 jobs, including 10,000 permanent roles. The focus on modernising energy systems comes at a critical time when utilities and tech industries are seeking reliable sources amidst growing demand.
Advanced Power brings substantial assets to the partnership with its existing late-stage projects throughout the US. These include more than 12GW of conventional and renewable energy ventures and more than 10GWh of energy storage undertakings — all essential for powering numerous large-scale data centres.
By combining Advanced Power’s development prowess with ArcLight’s operating portfolio, which includes 26GW across various electric infrastructures, the partnership stands out as one with significant influence in meeting domestic electricity demands, equivalent to those of more than 11 million homes.
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By GlobalDataAdvanced Power CEO Tom Spang stated: “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.”
With a history that includes managing assets totalling more than 65GW since its inception in 2001, ArcLight has demonstrated considerable experience overseeing large electric and gas transmission networks valued at above $80bn.
While specific financial details remain private, Latham & Watkins represents ArcLight legally during this transaction. Meanwhile, Morgan Stanley acts as financial advisor alongside Sidley Austin, which is providing legal counsel for Advanced Power.
