ADQ and ECP join forces for $25 billion energy infrastructure initiative

Abu Dhabi’s sovereign investment company, ADQ, has partnered with New Jersey-based Energy Capital Partners (ECP) to develop power generation and energy infrastructure projects worth more than $25 billion, totaling 25GW of capacity.

As part of the agreement, ADQ and ECP will establish a 50-50 joint venture, leveraging ADQ’s expertise in infrastructure investments alongside ECP’s leading energy investment platform in electrification, power, and renewable generation. The initiative aims to meet the growing power demands of data centers, hyperscale cloud companies, and other energy-intensive industries.

With the rise of AI-driven technologies and high-density data centers, ensuring a stable and uninterrupted power supply has become a critical requirement for businesses. Captive power plants, located near data centers, have become essential to meet the industry’s escalating electricity consumption.

The joint venture will focus on greenfield developments, new builds, and expansion projects, positioning the partnership as a leader in the U.S. power generation market. While the primary focus will be on the U.S., a portion of the $5 billion initial capital contribution from both partners may be allocated to select international markets.

Strategic investment in energy infrastructure

Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, highlighted the significance of this investment in addressing the growing power needs of data centers and hyperscalers.

“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.”

According to the International Energy Agency (IEA), global electricity consumption is projected to rise at its fastest pace in recent years, driven by the rapid expansion of data centers and industrial electrification.

Recent research estimates that global power demand from data centers will surge by 50% by 2027 and could grow by 165% by 2030. The U.S. Department of Energy further projects that data center energy consumption will double or even triple by 2028, reflecting the growing demand for AI-powered and high-density computing infrastructure.

Doug Kimmelman, Founder and Executive Chairman of ECP, emphasized the urgent need for power generation expansion to support AI-driven industries:

“AI will be a major driver of U.S. 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. The build-out of new power generation resources, or ‘additionality,’ in the U.S. will require significant, patient capital with a long-term horizon."

"Given the tightening supply/demand dynamics in U.S. power markets, new generation capacity will be needed. 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.” Kimmelman added.