UAE's ADQ, Energy Capital partners to launch $25bn US venture

20/03/2025 11:56 AST

Abu Dhabi Developmental Holding Co., a sovereign investment entity from the UAE, and Energy Capital Partners are joining forces to establish a $25 billion energy partnership aimed at meeting power needs across 25 gigawatts of US-based projects.

The collaboration will see the UAE-based firm partner with the largest private owner of power generation and renewable energy in the US in a 50-50 venture.

This partnership will focus on developing new power generation and energy infrastructure tailored to support data centers, hyperscale cloud companies, and other energy-intensive industries.

The combined initial capital contribution from both partners is expected to reach $5 billion, according to a report from the Emirates News Agency or WAM.

A portion of the funds may also be directed toward investment opportunities in select international markets.

This strategic move is aligned with recent findings from the International Energy Agency, which forecasts the world's electricity consumption to increase at its fastest rate in years. The surge is driven, in part, by rising demand from data centers and industrial electrification. In the US, electricity demand is expected to rise by an amount equivalent to California's current power consumption over the next three years.

The partnership also supports predictions that global power demand from data centers will increase by 50 percent by 2027 and may grow by as much as 165 percent by 2030. This surge is largely driven by the expansion of artificial intelligence and high-density data centers.

The US Department of Energy further reports that data center load growth has tripled over the past decade and is expected to double or triple again by 2028.

In a statement, UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also serves as managing director and group CEO of ADQ, emphasized the strategic importance of this collaboration. He stated: "The rapid acceleration of AI and its widespread adoption presents significant opportunities to address the growing power and infrastructure needs of data centers and hyperscalers. Meeting these power demands poses evolving challenges for governments worldwide to ensure a secure, stable, and commercially competitive electricity supply."

"As an active investor with a strong focus on critical infrastructure and a proven ability to build long-term partnerships, we are well-positioned to address these shifting dynamics. Our partnership with ECP enables us to invest meaningfully in power generation and related infrastructure assets that will meet the growing demand for electricity, support industry progress, and help future-proof economies," Al-Suwaidi added.

The statement further highlighted the critical need for reliable and consistent power in high-growth sectors, underscoring the necessity of nearby captive power plants to meet these demands. The partnership is designed to address these long-term needs, focusing on greenfield developments, new projects, and expansion opportunities, positioning it as a leader in power generation for the expanding US economy.

Doug Kimmelman, founder and executive chairman of ECP, remarked: "We are honored to collaborate with ADQ to provide the electricity resources required by the rapidly expanding AI and data center sector. The build-out of new power generation resources in the U.S. will necessitate significant, patient capital with a long-term investment horizon."