EQT announced that EQT Transition Infrastructure agreed to buy Scale Microgrids, a leading vertically integrated developer, acquirer, owner, and operator of microgrids and distributed energy resources for commercial & industrial, EV fleet, data center, municipal, university, hospital, and agricultural customers, developers and communities, from Warburg Pincus and other existing shareholders.
Based in Ridgewood, New Jersey, Scale’s portfolio comprises roughly 250 MWs of operating and in-construction assets, with another 2.5 GWs of the near-term pipeline. Scale deploys various technologies, including solar, battery storage, natural gas generators, fuel cells, and combined heat and power, and its portfolio represents one of the largest pure-play microgrid portfolios in the US.
The deal marks EQT’s first North American investment out of its recently launched Transition Infrastructure strategy, which aims to scale businesses that enable the transition to clean energy and a more resource-efficient, circular economy. And in December 2024, EQT announced the strategy launch and its inaugural investment in ju:niz Energy, a battery energy storage system developer and operator.
Scale addresses the most pressing grid challenges, including rapid load growth from data centers and fleet electrification, power generation capacity constraints, and increased frequency of grid outages. And Scale’s assets add resiliency to power systems, enable faster access to power relative to extended interconnection wait times, and provide cost savings and predictable power compared to the grid while advancing customers’ decarbonization and sustainability objectives.
EQT has a long-term strategic focus and deep experience in investing across the renewables infrastructure sector and significant resources, and will focus on making strategic investments, including incremental capital, in Scale’s commercial processes, software systems, and project execution capabilities to continue to develop the business into a best-in-class, multi-technology energy services leader focused on the highest growth market segments, enabling Scale to own and operate billions of dollars in distributed generation assets.
The deal is subject to customary conditions and approvals.
EQT was advised by Weil, Gotshal & Manges for legal and Guggenheim Securities for financial. And Scale Microgrids was advised by Latham & Watkins (legal), Nomura Greentech (financial), and Truist Securities (financial).
KEY QUOTES:
“We are thrilled that Scale Microgrids will become EQT Transition Infrastructure’s first investment in North America, underscoring our commitment to driving the energy transition globally and supporting a decarbonized and climate-resilient future while addressing the accelerated electricity demand in North America. We see enormous potential to accelerate Scale’s growth and establish it as one of the market’s leading vertically integrated energy companies.”
– Jan Vesely, Partner and Head of EQT Transition Infrastructure
“Today marks the start of an exciting new chapter for our company. EQT brings a depth of experience, resources, and capital that will enable us to continue pursuing our vision to power the world with distributed energy. I’m incredibly proud of what our team has built, and believe this transaction will enable us to unlock even greater opportunities for the customers, employees, and communities we serve. We’re appreciative of our past shareholders, led by Warburg Pincus, for their support in helping us get to where we are today.”
– Ryan Goodman, CEO of Scale Microgrids
“Scale has achieved incredible growth over the past five years, establishing a strong reputation as one of the leading providers of next generation power infrastructure. The Company has successfully grown to nearly 3 GW of operating, in-construction and near-term pipeline assets, closed multiple financings to fund future project development and maintains a strong customer base. We look forward to watching the Company’s next phase of growth with EQT, and continuing their mission to provide cleaner, cheaper and more reliable power.”
– Ryan Dalton, Managing Director at Warburg Pincus
