ArcLight Capital acquires Advanced Power to expand US energy projects

ArcLight Capital Partners, a private equity firm based in the United States known for its investments in energy and infrastructure, has expanded its portfolio by acquiring Advanced Power, a US power developer. This acquisition is part of a strategic initiative to construct 20 GW of natural gas-fired power facilities nationwide, primarily to cater to the growing energy requirements of data centers. In executing this plan, ArcLight plans to allocate roughly $5 billion over the next half-decade, having already pledged an initial $1 billion in equity for new power infrastructure development.

The firm projects that these new gas power plants could become operational within a timeline of 2 to 7 years. Additionally, there are plans to create solar and battery storage installations, targeting electricity grids from the East Coast through to the Midwest, as well as in regions such as Texas and the desert Southwest.

With a current power portfolio totaling 26 GW, ArcLight brings its expertise in conventional energy, renewables, battery storage, transmission, gas infrastructure, and digital power systems to the table. The acquisition of Advanced Power enhances this portfolio by adding over 12 GW of advanced power projects and upwards of 10 GWh of energy storage capacity within the United States. While ArcLight has chosen not to reveal the purchase price of privately owned Advanced Power, this acquisition marks a significant step in its expansion strategy.