DigitalBridge announced that it has entered into a definitive agreement to acquire ArcLight Capital Partners for a total transaction value of up to $1.05 billion, including a base purchase price of $650 million and up to $400 million in contingent consideration. The transaction brings together two specialist infrastructure investment platforms with combined assets representing more than $150 billion, positioning the combined business at the convergence of power, AI, and digital infrastructure.
The acquisition is conditioned on the completion of the previously announced acquisition of DigitalBridge by an affiliate of SoftBank Group and will not change the terms or consideration associated with that transaction. Following the closing, ArcLight will continue operating as a separately managed business within the DigitalBridge platform.
DigitalBridge said the combination is designed to address increasing demand for compute, connectivity, and power infrastructure driven by AI, electrification, and hyperscale data center growth. The company believes the combined platform will have the scale and expertise necessary to invest across both digital and energy infrastructure markets globally.
Founded in 2001, ArcLight has owned, controlled, or operated more than 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value. The firm also operates a large private power generation portfolio and development pipeline in North America, supported by an 85-person power development organization with a pipeline exceeding 15 GW.
DigitalBridge said the transaction will create opportunities to develop new investment strategies combining ArcLight’s expertise in power infrastructure with DigitalBridge’s digital infrastructure platform and relationships across the hyperscale ecosystem.
Under the terms of the agreement, ArcLight founder Daniel Revers will become Vice Chairman of DigitalBridge following completion of the transaction. Angelo Acconcia will continue serving as Managing Partner of ArcLight, while Jake Erhard will become Senior Partner.
The transaction remains subject to customary closing conditions, including regulatory approvals, limited partner consents, and completion of the SoftBank acquisition.
KEY QUOTES:
“Digital infrastructure is a specialist business, and ArcLight has operated with that same philosophy in power infrastructure for more than two decades, building deep expertise across power, renewables, batteries, transmission, and midstream infrastructure. The shared conviction that specialization creates durable advantages is foundational to this combination and expands what we can deliver for our limited partners and customers. AI is rewiring the global power equation, accelerating investment across generation, transmission, and behind-the-meter infrastructure. We believe the firms best positioned for this next phase of growth will be those that are able to underwrite both digital and energy infrastructure with equal depth and credibility. Together, DigitalBridge and ArcLight will help create a scaled infrastructure platform positioned for that convergence. We are privileged to welcome Daniel Revers, Angelo Acconcia, Jake Erhard, and the broader ArcLight team to DigitalBridge as we continue building differentiated infrastructure capabilities together.”
Marc Ganzi, Chief Executive Officer, DigitalBridge
“I founded ArcLight in 2001, as one of the first dedicated power infrastructure investment platforms, and more than two decades later we are taking another significant step toward building a platform for the growing convergence of power, AI, and digital infrastructure. As demand for compute, connectivity, and electrification continues to accelerate, we believe the next phase of infrastructure investing will increasingly require integrated expertise across both power and digital infrastructure. This combination builds on ArcLight’s strong foundation and creates new opportunities for our investors, customers, and partners, while preserving the independence, discipline, and long-term focus that has defined our business since inception. By combining ArcLight’s deep experience across power infrastructure with DigitalBridge’s global digital infrastructure platform and longstanding relationships across the hyperscale ecosystem, and SoftBank Group’s broader technology and AI leadership, we believe the combined platform will be well positioned to support the next generation of infrastructure development.”
Daniel Revers, Founder, ArcLight
“Meeting the power demands of AI infrastructure, reshoring, and electrification is a generational opportunity. Power has become the critical bottleneck for digital infrastructure buildout, and solving it takes expertise and dedicated people. We’ve built 25 years of technical knowledge, regulatory relationships, and operational depth in electrification infrastructure. Over the past five years alone, we have significantly expanded our team, resources, and capabilities to create an integrated platform to meet this need at scale. ArcLight looks forward to building on this momentum in partnership with DigitalBridge as we execute on an integrated approach to powering the digital economy.”
Angelo Acconcia, Managing Partner, ArcLight
