ArcLight Capital Partners announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has agreed to make a $500 million minority investment in AlphaGen, a power infrastructure portfolio owned by affiliates of ArcLight-managed funds.
The funding remains subject to regulatory approvals and is expected to close in the first half of 2025. The portfolio is one of the largest independent power portfolios in the U.S., with over 11 GWs of critical power assets located in strategic markets nationwide that benefit from accelerating power demand.
The converging investment megatrends of AI-based data center development and electrification are creating unprecedented power demand growth, increasing the importance of power infrastructure that can offer resilient, sustainable, and affordable solutions to serve the market’s long-term energy and reliability needs. And AlphaGen is well-positioned to help meet these strategic and growing needs.
Since 2001, ArcLight owned, controlled, or operated over about 65 GW of assets and 47,000 miles of electric and gas transmission infrastructure, representing approximately $80 billion of enterprise value. And with its deep industry experience and internal technical expertise, ArcLight believes it is uniquely positioned to deliver the power infrastructure solutions required to support the substantial demand for AI compute and data center deployments.
KEY QUOTES:
“ArcLight is excited to expand its existing relationship with ADIA through this partnership, which will help catalyze the future growth and value of the AlphaGen portfolio and take advantage of the significant market opportunity we see associated with the secular and systemic growth in power demand and related infrastructure.”
- Angelo Acconcia, Partner at ArcLight
“These power assets, selectively acquired over time and through numerous discrete transactions, aggregate a strategic portfolio which serves an important market need.”
- Andrew Brannan, Managing Director at ArcLight
“This transaction presented an opportunity to expand our existing relationship with ArcLight, which has a long history of successfully investing in power infrastructure and is well positioned through this portfolio to provide the reliable electricity required by AI data centers and local industries.”
- Khadem AlRemeithi, Executive Director of the Infrastructure Department at ADIA
“We are excited about the future potential of this portfolio which is well positioned to deliver safe, reliable, and dynamic power solutions to meet increasing demand.”
- Curt Morgan, CEO of AlphaGen
