Latest news with #DougKimmelman
CNBC
06-05-2025
- Business
- CNBC
The AI boom needs to stay in the U.S., says Energy Capital's Doug Kimmelman
Doug Kimmelman, Energy Capital Partners executive chairman, joins 'Power Lunch' to discuss the energy trade, power generation and energy policy under Trump.
Arabian Business
31-03-2025
- Business
- Arabian Business
Abu Dhabi's ADQ to partner ECP in $25bn investment in the US energy infrastructure
ADQ (formerly Abu Dhabi Developmental Holding Company), the Abu Dhabi-based sovereign investment company, will partner with the New Jersey-headquartered Energy Capital Partners (ECP) to build power generation and energy infrastructure with capital investments of more than $25 billion across 25GW worth of projects. ADQ and ECP have entered into an agreement to establish a 50-50 partnership for this. The partnership combines ADQ's expertise in infrastructure investments with ECP's premier energy investment platform in electrification, power, and renewable generation. It aims to service the growing power needs of data centres, hyperscale cloud companies, and other energy-intensive industries. ADQ-ECP collaboration Captive power plants in close proximity to data centres are often a prerequisite for these high-growth industries, as an uninterrupted power supply is critical to their functioning. The mandate includes greenfield development, new build and expansion opportunity projects that will establish the partnership as a leader in power generation for a growing American economy. The partnership's primary geographic focus of the projects will be the USA, but a portion of the capital may also be allocated towards opportunities in selected other international markets. The combined initial capital contribution from the partners is expected to be $5 billion. Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, commented: 'The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centres and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring secure, stable, and commercially competitive electricity supply. 'As an active investor with a sharp focus on critical infrastructure and proven capability in building long-term partnerships, we are in a prime position to help address these shifting structural dynamics. 'Our partnership with ECP allows us to invest meaningfully in generation and related infrastructure assets that support accelerating demand for power, promoting the progress of these industries and helping to future-proof economies.' Supporting data centres' growth According to a recent report by the International Energy Agency (IEA), the world's electricity consumption is forecast to rise at its fastest pace in recent years. This surge is in part driven by the growing needs of data centres and industrial electrification. Recent research forecasts that global power demand from data centres will increase by 50 per cent by 2027 and by as much as 165 per cent by the end of the decade, driven by the expansion of AI and high-density data centers. The US Department of Energy estimates that data centre load growth has tripled over the past decade and is projected to double or triple by 2028. Doug Kimmelman, ECP's Founder and Executive Chairman, added: 'AI will be a major driver of US economic and job growth over the coming decade, but not unless ample new electricity supplies are developed. 'We are honoured to build an investing partnership with ADQ to provide the electricity resources demanded by the rapidly growing AI data centre sector where the build out of new power generation resources or 'additionality' in the US will require significant, patient capital with a long-term horizon. 'Given the tightening supply/demand dynamics in US power markets, new generation capacity will be needed and our focus in this partnership will therefore primarily be on new-build natural gas-fired power generation assets in scale to meet the needs of hyperscalers on a timely basis.' ADQ manages over 25 portfolio companies across more than 130 countries, operating across key sectors such as energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics. Infrastructure investments have been at the core of ADQ's mandate since it received its first asset transfers from the Government of Abu Dhabi, which included major power and water companies. The company's total assets amounted to $225 billion as of 30 June 2024. ECP, founded in 2005, has established itself as a leading equity and credit investor in energy transition infrastructure. Its portfolio includes investments in power, renewables, storage, sustainability, and decarbonisation infrastructure. ECP has owned, controlled, and operated over 83GW of power generation across all major US power markets.
Gulf Business
20-03-2025
- Business
- Gulf Business
ADQ, Energy Capital Partners seal $25bn partnership to power data centres
Image: ADQ Abu Dhabi-based ADQ and US private equity firm Energy Capital Partners (ECP) have announced a 50-50 partnership to develop new power generation and energy infrastructure, aiming to address the rising electricity demands of data centers and energy-intensive industries. The joint venture will focus primarily on the US market, with potential investments in select international regions. The partners plan to invest over $25bn across 25 gigawatts (GW) of power generation projects, with an initial combined capital contribution of $5bn. The initiative will prioritise greenfield developments, new builds, and expansion projects to ensure a stable power supply for hyperscale cloud companies and industrial electrification. Meeting the rising demand for electricity According to a report by the International Energy Agency (IEA), global electricity consumption is projected to rise at its fastest rate in recent years, driven by the rapid expansion of artificial intelligence (AI) and high-density data centres. The US Department of Energy estimates that data centre power demand has tripled over the past decade and is expected to double or triple again by 2028. Research indicates that data centre power consumption worldwide could increase by 50 per cent by 2027 and up to 165 per cent by the end of the decade. 'The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers,' said Mohamed Hassan Alsuwaidi, MD and group CEO of ADQ. 'Our partnership with ECP allows us to invest meaningfully in generation and infrastructure assets that support accelerating demand for power, promoting the progress of these industries and helping to future-proof economies.' ECP's founder and executive chairman, Doug Kimmelman, emphasised the urgency of new power generation to sustain AI-driven growth. 'AI will be a major driver of US economic and job growth over the coming decade, but not unless ample new electricity supplies are developed. Our focus in this partnership will primarily be on new-build natural gas-fired power generation assets at scale to meet the needs of hyperscalers on a timely basis,' said Kimmelman. تماشياً مع نهج 'القابضة' (ADQ) بالتركيز على الاستثمار في مشاريع البنية التحتية الأساسية، أسست 'القابضة' (ADQ) مشروعاً مشتركاً مع 'إنرجي كابيتال بارتنرز'، أكبر شركة خاصة تعمل في قطاع توليد الطاقة والطاقة المتجددة في الولايات المتحدة الأميركية. وسيُسهّل هذا المشروع المشترك تطوير… — ADQ (@Adq_Official) ADQ-ECP strategic investment to enable long-term growth ADQ, which manages over 25 portfolio companies across more than 130 countries, has made infrastructure investments a core part of its mandate, spanning key sectors such as energy, utilities, healthcare, and logistics. ECP, founded in 2005, has built a strong track record as an investor in energy transition infrastructure, with ownership and operation of more than 83GW of power generation assets across major US markets. Led by a team with deep expertise in power infrastructure, the joint venture is poised to begin project development immediately. Specialised teams will oversee rapid origination and efficient commissioning of new power facilities to ensure reliable and sustainable energy supply for the digital economy. Read:
Khaleej Times
19-03-2025
- Business
- Khaleej Times
ADQ and Energy Capital Partners to establish a $25 billion partnership
ADQ, an active sovereign investor with a focus on critical infrastructure and global supply chains, and Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the USA, have entered into an agreement to establish a 50-50 partnership in new build power generation and energy infrastructure. The partnership aims to service the growing power needs of data centers, hyperscale cloud companies and other energy-intensive industries. As the continuity and quality of power supply is crucial for these high-growth industries, the need for captive power plants that are in proximity is often a pre-requisite. The partnership is focused on meeting these needs over the long-term, with its mandate including greenfield development, new build and expansion opportunity projects that will establish it as a leader in power generation for a growing American economy. The partnership's primary geographic focus of the projects will be the USA. A portion of the capital may also be allocated towards opportunities in selected other international markets. The partners plan to make total capital investments of more than $25 billion across 25 GW worth of projects. The combined initial capital contribution from the partners is expected to amount to $5 billion. According to a recent report by the International Energy Agency (IEA), the world's electricity consumption is forecast to rise at its fastest pace in recent years. This surge is in part driven by the growing needs of data centers and industrial electrification. In the USA, a strong increase in electricity demand is expected to add the equivalent of California's current power consumption to the national total over the next three years. Recent research forecasts that global power demand from data centers will increase by 50 per cent by 2027 and by as much as 165 per cent by the end of the decade, driven by the expansion of AI and high-density data centers. The US Department of Energy estimates that data center load growth has tripled over the past decade and is projected to double or triple by 2028. Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said: 'The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring secure, stable, and commercially competitive electricity supply. As an active investor with a sharp focus on critical infrastructure and proven capability in building long-term partnerships, we are in a prime position to help address these shifting structural dynamics. Our partnership with ECP allows us to invest meaningfully in generation and related infrastructure assets that support accelerating demand for power, promoting the progress of these industries and helping to future-proof economies.' Doug Kimmelman, ECP's Founder and Executive Chairman, commented: 'AI will be a major driver of US economic and job growth over the coming decade, but not unless ample new electricity supplies are developed. We are honored to build an investing partnership with ADQ to provide the electricity resources demanded by the rapidly growing AI data center sector where the build out of new power generation resources or 'additionality' in the US will require significant, patient capital with a long-term horizon. Given the tightening supply/demand dynamics in US power markets, new generation capacity will be needed and our focus in this partnership will therefore primarily be on new build natural gas fired power generation assets in scale to meet the needs of hyperscalers on a timely basis.' ADQ manages over 25 portfolio companies across more than 130 countries, operating across key sectors of Abu Dhabi's rapidly transforming economy, including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics. Infrastructure investments have been at the core of ADQ's mandate since it received its first asset transfers from the Government of Abu Dhabi, which included major power and water companies. Since its founding in 2005, ECP has established itself as a leading equity and credit investor in energy transition infrastructure. Its portfolio includes investments in power, renewables, storage, sustainability, and decarbonization infrastructure. ECP has owned, controlled, and operated over 83 GW of power generation across all major US power markets, spanning a variety of technologies including natural gas, geothermal, hydro, solar, wind, battery storage, and waste-to-energy over the past two decades.
Axios
19-03-2025
- Business
- Axios
Exclusive: UAE, U.S. partnership to invest to power data centers
The Abu Dhabi-based wealth fund ADQ and U.S. heavyweight Energy Capital Partners aim to invest over $25 billion in projects to power data centers and other industrial consumers. Why it matters: Their new U.S.-focused, 50-50 partnership unveiled Wednesday is stark evidence that AI's voracious power demand is attracting fresh capital as the nation's electricity needs rise. Driving the news: A major goal is new, gas-fired generation co-located with data centers, rather than connected to wider power grids, ECP's Doug Kimmelman said. "What we don't want to do is be taking power off of the grid, which certainly could impact, for the average consumer, reliability and prices. So we need additionality," Kimmelman, the firm's founder and executive chairman, told Axios in an interview. What's next: The partnership envisions 25 gigawatts worth of projects, with the first coming online in around three years. One gigawatt is enough to power at least 700,000 homes for a year. Data centers require the predictability that gas plants provide, but could be "selectively" supplemented with renewables and storage, Kimmelman said. The U.S. will be the main focus for building generation and related infrastructure, but the partnership may venture into international markets later, the announcement states. The partners are initially planning to provide a combined $5 billion. The big picture: Analysts see U.S. power demand poised for a prolonged rise after many years of stasis. A late 2024 Energy Department study projects data centers accounting for 6.7% to 12% of U.S. electricity use by 2028, up from 4.4% in 2023, though estimates vary and it's a moving target as AI evolves. Data centers for AI and other powerful computing are the snazziest but far from the only thing behind the rise. Electric vehicles, new manufacturing and other sectors are all in the mix. State of play: It's a new partnership, but the two entities are hardly starting from scratch. "We have relationships with the hyperscalers, and certainly ADQ and UAE, they have significant relationships with the hyperscalers as well," Kimmelman said. The intrigue: Kimmelman said Trump 2.0 economic and infrastructure policies — including support for new fossil fuel generation and pipelines — provides strong tailwinds. "The environment has changed dramatically to encourage what we're doing," he said. "This is also going to spur production of natural gas, which is also on the president's agenda," he said. What we're watching: When and where the planned projects take shape.
