ArcLight Capital Partners has acquired Advanced Power, a leading U.S. power developer and manager, and committed an initial $1 billion in equity to build new power infrastructure. The partnership is expected to invest more than $5 billion over the next five years to support the development of over 20 gigawatts (GW) of new power capacity and meet the growing demands of AI and data center infrastructure across North America.

The collaboration creates one of the largest and most strategically positioned power infrastructure platforms in the U.S., aimed at addressing rising grid capacity needs and accelerating the deployment of modern, low-carbon energy systems. The joint effort targets critical utility, hyperscaler, and data center power demands, while also enhancing grid resilience. Over the next five years, the initiative could generate up to 80,000 jobs, including 10,000 permanent roles. “Accelerated access to power infrastructure has become the critical bottleneck to enabling and meeting data center and AI growth goals and electrification needs at federal and state levels. There is an urgent need for new large-scale, sustainable power solutions,” said Angelo Acconcia, Partner at ArcLight. “Together, ArcLight and Advanced Power are well positioned to help address this need and enable strategic solutions to accelerate, deliver and manage large-scale customized power infrastructure and help provide capacity, reliability, affordability and sustainability to the North American power grid.”

“Advanced Power has a long development history and is committed to bringing safe, reliable power infrastructure to communities, while creating value for those associated with our projects,” said Tom Spang, CEO of Advanced Power. “Finding a partner and investor aligned with these core principles was imperative, and ArcLight shares decades of complementary expertise built on strong relationships. These combined resources and deep connections throughout the energy sector enable us to deliver large-scale power solutions to markets, utilities, data center developers, and hyperscalers.”

Advanced Power brings to the partnership more than 12 GW of late-stage power projects and over 10 GWh of energy storage capacity across the U.S.—enough to support over 20 large-scale data center campuses.