UAE’s ADQ and Energy Capital Partners Announce $25 Billion Energy Venture in the U.S.
A strategic partnership aims to develop energy infrastructure for the growing power needs of data centers and other industries across the United States.
Abu Dhabi Developmental Holding Company (ADQ), a sovereign investment entity from the United Arab Emirates, has formed a partnership with Energy Capital Partners (ECP) to establish a $25 billion energy venture.
This collaboration is focused on addressing the power needs of various projects across the United States, with an emphasis on developing 25 gigawatts of energy capacity.
The initiative represents a 50-50 joint venture between the UAE-based ADQ and ECP, which is recognized as the largest private owner of power generation and renewable energy assets in the U.S. The combined initial capital investment expected from both entities is set to reach $5 billion, as reported by the Emirates News Agency.
In alignment with rising global electricity consumption, the partnership will prioritize the development of new power generation and energy infrastructure to cater specifically to data centers, hyperscale cloud companies, and other energy-intensive sectors.
The International Energy Agency highlights a significant increase in global electricity demand, particularly driven by industrial electrification and the increasing need for data center power.
Forecasts indicate that U.S. electricity demand could grow over the next three years by an amount equivalent to the current power consumption of California.
Furthermore, there is an anticipated 50 percent increase in global power demand from data centers by 2027, which may escalate to a 165 percent rise by 2030, largely attributed to advancements in artificial intelligence and the need for high-density data centers.
According to the U.S. Department of Energy, data center load growth has experienced a threefold increase in the past decade, with expectations for it to possibly double or triple again by 2028.
UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also holds the position of managing director and CEO of ADQ, underscored the strategic relevance of this collaboration.
He articulated that the swift advancement of AI and its widespread implementation present critical opportunities to meet the escalating energy and infrastructure demands of data centers.
Al-Suwaidi noted the evolving challenges faced by governments to secure stable and commercially viable electricity supplies.
He stated, "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." Al-Suwaidi elaborated that the partnership with Energy Capital Partners equips ADQ to meaningfully invest in assets that will satisfy the growing electricity demand, support industrial development, and future-proof economies.
The partnership places a strong emphasis on the necessity of reliable and consistent power to meet the critical needs of high-growth industries.
It is designed to address long-term energy challenges through a focus on greenfield developments and new project opportunities, aiming to establish a leading position in power generation within the expanding U.S. economy.
Doug Kimmelman, founder and executive chairman of ECP, expressed his appreciation for the collaboration, stating, "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."
This collaboration is focused on addressing the power needs of various projects across the United States, with an emphasis on developing 25 gigawatts of energy capacity.
The initiative represents a 50-50 joint venture between the UAE-based ADQ and ECP, which is recognized as the largest private owner of power generation and renewable energy assets in the U.S. The combined initial capital investment expected from both entities is set to reach $5 billion, as reported by the Emirates News Agency.
In alignment with rising global electricity consumption, the partnership will prioritize the development of new power generation and energy infrastructure to cater specifically to data centers, hyperscale cloud companies, and other energy-intensive sectors.
The International Energy Agency highlights a significant increase in global electricity demand, particularly driven by industrial electrification and the increasing need for data center power.
Forecasts indicate that U.S. electricity demand could grow over the next three years by an amount equivalent to the current power consumption of California.
Furthermore, there is an anticipated 50 percent increase in global power demand from data centers by 2027, which may escalate to a 165 percent rise by 2030, largely attributed to advancements in artificial intelligence and the need for high-density data centers.
According to the U.S. Department of Energy, data center load growth has experienced a threefold increase in the past decade, with expectations for it to possibly double or triple again by 2028.
UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also holds the position of managing director and CEO of ADQ, underscored the strategic relevance of this collaboration.
He articulated that the swift advancement of AI and its widespread implementation present critical opportunities to meet the escalating energy and infrastructure demands of data centers.
Al-Suwaidi noted the evolving challenges faced by governments to secure stable and commercially viable electricity supplies.
He stated, "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." Al-Suwaidi elaborated that the partnership with Energy Capital Partners equips ADQ to meaningfully invest in assets that will satisfy the growing electricity demand, support industrial development, and future-proof economies.
The partnership places a strong emphasis on the necessity of reliable and consistent power to meet the critical needs of high-growth industries.
It is designed to address long-term energy challenges through a focus on greenfield developments and new project opportunities, aiming to establish a leading position in power generation within the expanding U.S. economy.
Doug Kimmelman, founder and executive chairman of ECP, expressed his appreciation for the collaboration, stating, "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."