Latest news with #AdvancedPower
Yahoo
25-07-2025
- Business
- Yahoo
ArcLight plans $5bn investment in North American power infrastructure
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. 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. Advanced 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. "ArcLight plans $5bn investment in North American power infrastructure" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-07-2025
- Business
- Yahoo
The $5 Billion Bet Powering the AI Revolution
ArcLight Capital is making a bold move into the AI energy arms race. The private equity firm just snapped up Advanced Power and plans to pump $5 billion over five years into building 20 gigawatts of new natural gas-fired power plants. These plantsdesigned to supply electricity to energy-hungry data centerscould come online in as little as two years, with some taking up to seven. ArcLight is also eyeing solar and battery storage, focusing on grid hotspots across the mid-Atlantic, Midwest, Texas, and the Southwest. Warning! GuruFocus has detected 9 Warning Sign with NRG. This isn't just another bet on infrastructureit's a response to one of the fastest-growing sources of power demand in decades: AI. Publicly traded power producers like NRG Energy (NYSE:NRG), Vistra (NYSE:VST), Constellation (NASDAQ:CEG), and Talen (NASDAQ:TLN) have already poured a combined $34 billion this year into scooping up gas-fired plants, hoping to capture the soaring price of power. ArcLight's play is different. Rather than buying old plants, it's building new capacity from the ground up to directly serve the AI and electrification boom. While ArcLight didn't share what it paid for Advanced Power, its total plan could support up to $25 billion in generation spending. CEO Tom Spang of Advanced Power summed up the urgency: We need to get going and we need it now because we don't have enough power. The challenge? Regulatory bottlenecks and unpredictable market swings could slow timelines. Still, with power demand from AI, manufacturing, and electrification all accelerating, ArcLight could be positioning itself at the center of a new energy supercycle. This article first appeared on GuruFocus.
Bloomberg
24-07-2025
- Business
- Bloomberg
ArcLight Betting About $5 Billion on New Gas-Fired Power Plants
ArcLight Capital Partners acquired electricity developer Advanced Power with a plan to build 20 gigawatts of natural gas-fired plants in the US mainly to feed power-hungry data centers. It says it may invest about $5 billion over the next 5 years. ArcLight said the plants — capable of producing enough energy to power 16 million homes — can be brought online in 2 to 7 years. The company also intends to build solar and batteries, and will focus on grids stretching from the mid-Atlantic to the Midwest, Texas and the desert Southwest.
