DigitalBridge Group Inc is to acquire energy-focused private equity firm ArcLight Capital Partners in a deal valued at up to $1.05bn, as investors increasingly look to pair data centre capacity with reliable power supplies amid surging AI-driven demand, according to a report by the FT.
The transaction brings together one of the largest investors in digital infrastructure with a specialist energy-focused asset manager known for its investments in power generation assets, including natural gas and renewables. The combination is designed to help accelerate the development and operation of data centres by integrating energy sourcing and infrastructure build-out under a single investment platform.
DigitalBridge said the combined group will be better positioned to deliver data centre projects at a time when energy constraints and grid bottlenecks are delaying or reshaping development timelines across North America. ArcLight will continue to operate as a standalone business but will collaborate closely with DigitalBridge on new investments across digital and energy infrastructure.
The deal comes as competition intensifies among large alternative asset managers to secure access to power assets that can support the rapid expansion of AI-driven computing demand. The sector has increasingly seen partnerships between infrastructure investors and energy specialists aimed at resolving electricity supply constraints for hyperscale data centre projects.
Blackstone Inc, Brookfield Asset Management, and KKR & Co Inc have all recently expanded partnerships with utilities and energy operators to secure long-term power capacity for data centre development, underscoring a broader industry trend toward vertical integration across energy and digital infrastructure.
ArcLight has historically been one of the most active private owners of US power assets, while DigitalBridge has built a portfolio of data centre and fibre infrastructure investments globally. The combination is intended to bridge those capabilities, enabling faster deployment of AI-ready infrastructure.
The transaction also aligns with broader strategic activity around SoftBank Group Corp, which is in the process of acquiring DigitalBridge in a separate deal valued at more than $4bn. SoftBank has been aggressively expanding its exposure to AI infrastructure, including investments in companies such as OpenAI.
According to the companies, ArcLight founder Daniel Revers will join DigitalBridge’s board and serve as vice-chair of the combined investment platform, which will oversee more than $150bn in assets following completion of the acquisition.
