Blackstone has led a $5.34bn investment into a new joint venture with US energy infrastructure company Williams, alongside Apollo and investment vehicles managed by KKR, to fund a portfolio of behind-the-meter power generation projects.
Under the agreement, funds managed by Blackstone Credit & Insurance, together with Apollo and KKR-managed insurance accounts, will acquire a 49% non-controlling stake in five of Williams’ Power Innovation projects. Williams will retain the remaining 51% interest as well as operational and commercial control of the assets.
The transaction reflects continued private equity and private credit appetite for long-term infrastructure investments linked to surging electricity demand from data centres, artificial intelligence and industrial customers.
The consortium’s commitment comprises approximately $4.4bn to fund its share of future development capital expenditure and an additional $900m of consideration payable to Williams. The company said the structure reduces its capital requirements while allowing it to continue expanding its power infrastructure platform.
The five projects included in the joint venture – Socrates, Apollo, Aquila, Socrates the Younger, and Neo – form part of Williams’ broader Power Innovation business, which has more than 2.6 gigawatts of announced projects and a development pipeline exceeding 6GW.
Williams said the investment would enable it to recycle capital into additional growth opportunities while maintaining its targeted leverage ratio. The company also retains an option to repurchase the investors’ stake between years seven and 14, preserving the potential to regain full ownership of the assets over time.
The deal highlights the growing role of alternative asset managers in financing North American energy infrastructure as demand for reliable electricity accelerates, driven in part by the rapid expansion of AI computing capacity and data centre development. Infrastructure equity, private credit and insurance capital have increasingly been deployed to support large-scale power generation and energy transition projects that require substantial upfront investment.
For Blackstone, the transaction expands its infrastructure and asset-based finance portfolio, while Apollo and KKR continue to increase their exposure to long-duration energy and infrastructure assets through their insurance-backed investment strategies.
Williams said the transaction is expected to support its financial position by reducing corporate funding requirements for the projects and preserving balance sheet capacity for future investments. The company reaffirmed its 2026 financial guidance, including adjusted EBITDA of between $8.05bn and $8.35bn and growth capital expenditure of $7.0bn to $7.6bn.
Citi advised Williams on the transaction, with Davis Polk & Wardwell acting as legal counsel. Morgan Stanley advised Blackstone, while Kirkland & Ellis served as legal adviser to the investment consortium.
