ArcLight Acquires Advanced Power, Projected to Commit $5+ Billion to Power Development Over Next 5 Years

­ArcLight Capital Partners (“ArcLight”) announced the acquisition of Advanced Power, a leading power developer and manager founded in 2000, and an initial $1 billion equity commitment to build new power infrastructure. The partnership has the potential to invest more than $5 billion of equity over the next five years to enable over 20 gigawatts (GW) of new power and the acceleration of North America’s AI and data center infrastructure growth.

The investment and partnership creates one of the leading power infrastructure solutions platforms. The partnership is strategically positioned to address the complex growing capacity needs of the power sector and accelerate “time to power” through the deployment of modern, low-carbon power infrastructure. This infrastructure is essential to meeting the growing needs of utilities, data center developers and hyperscalers, while improving grid reliability. The partnership has the potential to help create as many as 80,000 jobs over the next five years, including approximately 10,000 potentially permanent positions.

Advanced Power’s existing late-stage power projects across the U.S. include 12+ GWs of conventional and renewable projects and 10+ GWh of energy storage projects, enough to provide reliable, accelerated, large-scale power infrastructure to over 20 large scale, data center campuses. The partnership combines Advanced Power’s significant development expertise, power development track record, and strategic industry relationships with ArcLight’s existing 26 GWs operating power portfolio and electric infrastructure expertise across power, renewables, batteries, transmission, strategic gas and digital power.

With a pipeline of over 20 GWs of identified, advanced, new generation capacity primed for development, ArcLight and Advanced Power’s development portfolio becomes one of the largest in the U.S., offering enough capacity to power 11+ million homes.

“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.”

Since 2001, ArcLight has owned, controlled, or operated over 65 GW of assets and 47,000 miles of electric and gas transmission infrastructure, with over $80 billion of enterprise value. With its deep industry experience and suite of internal operational and technical resources, ArcLight is well positioned to deliver the innovative and customized electric infrastructure solutions required by AI and data center power demand. Today, ArcLight manages the largest private power infrastructure portfolio in North America.

Financial terms of the private transaction were not disclosed. Latham & Watkins LLP is serving as legal counsel to ArcLight. Morgan Stanley & Co. LLC is serving as financial advisor and Sidley Austin LLP as legal advisor to Advanced Power.