US private equity firm Energy Capital Partners (ECP) has entered into a $25bn-plus partnership with Abu Dhabi’s sovereign wealth fund ADQ to develop energy infrastructure aimed at powering data centres, according to a report by Reuters.
In a statement released on Wednesday, ADQ said the 50-50 joint venture will invest across 25 gigawatts of new-build power generation and energy infrastructure, primarily in the United States. The initiative is designed to support the rising energy demands of data centres, hyperscale cloud providers, and other energy-intensive industries.
This deal underscores private equity’s deepening involvement in the energy transition and digital infrastructure sectors, with ECP, a specialist in energy and infrastructure investments, bringing expertise in power generation, renewables, and energy storage, complementing ADQ’s ambitions to diversify its portfolio and expand into the global infrastructure market.
The transaction also aligns with ADQ’s broader strategy of leveraging private capital to gain access to high-growth sectors, particularly in the US. The sovereign wealth fund, which manages $225bn in assets, has been rapidly expanding its investments in energy, critical minerals, and transport to reduce its reliance on oil revenues.
