UK utility group National Grid has announced plans to spend $1.75bn on a 35% stake in Joulent, a US power generation company that manages energy for data centres.<\/p>\n
Joulet develops power generation and high-voltage infrastructure for so-called “large load customers” in the US, helping them meet the boom in demand for artificial intelligence tools.<\/p>\n
National Grid said the investment was in line with its strategy to go after “select critical infrastructure growth opportunities emerging from the transforming energy landscape”.<\/p>\n
It also expands the company’s exposure to the rapidly growing US large load power market and diversifies its regional presence in the country.<\/p>\n
National Grid said the deal will be funded through existing balance sheet headroom and will still allow it to maintain a strong investment grade credit rating. <\/p>\n
Joulent’s flagship project, Project Kilby, is a 2.67 GW co-located power facility in West Texas, powering a Microsoft-operated data centre campus.<\/p>\n
It is being developed in partnership with American energy major Chevron and should deliver first power in 2028.<\/p>\n
“Our investment in Joulent is a disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy,” said National Grid boss Zo\u00eb Yujnovich.<\/p>\n
“Through National Grid Ventures, we are gaining exposure to a major source of electricity demand growth that diversifies our regional US exposure and is supported by strong partners.”<\/p>\n
National Grid shares were down 2.2% at 1,220p by 1429 BST.<\/p>\n