Abu Dhabi, UAE – Abu Dhabi’s sovereign wealth fund ADQ and US-based private equity firm Energy Capital Partners (ECP) have announced a landmark $5 billion joint venture aimed at bolstering power generation and energy infrastructure. The equal partnership seeks to develop 25 gigawatts (GW) of new energy projects, with a projected capital investment surpassing $25 billion over the next five years.
Addressing Rising Energy Demands
The collaboration comes at a time when the demand for electricity, particularly from data centers, is surging. Fueled by the rapid expansion of artificial intelligence (AI) technologies, data centers in the US accounted for 4.4% of the nation’s electricity consumption in 2023—a figure expected to rise to 12% by 2028, according to the US Department of Energy (DOE).
To meet this growing need, the ADQ-ECP joint venture will primarily focus on gas-fired power generation, with the possibility of incorporating 24/7 renewable energy solutions in the future. Rather than supplying traditional power grids, these energy projects will cater directly to hyperscale data centers and other high-demand industries.
Targeting Key US Markets
ADQ has identified energy-intensive regions in the northeastern and southwestern US as priority markets, with plans to finalize its first power purchase agreement (PPA) within the next year. By collaborating with data center operators and their tenants, the joint venture aims to tailor power-generation assets to industry-specific needs.
The initiative aligns with recent large-scale investments in the sector. In January, Dubai-based real estate developer Damac Properties announced a $20 billion investment in new data centers across multiple US states, including Texas, Arizona, and Ohio, signaling a broader shift toward infrastructure expansion.
Strengthening US-UAE Energy Cooperation
The announcement coincides with a high-profile UAE delegation visit to the US, led by Sheikh Tahnoon bin Zayed, UAE National Security Adviser and Deputy Ruler of Abu Dhabi. Discussions with former US President Donald Trump focused on enhancing cooperation across energy, technology, and AI sectors.
UAE Minister of Industry and Advanced Technology Dr. Sultan Al Jaber confirmed the United States as a vital partner in energy and technological breakthroughs during the recent CERAWeek energy conference in Houston. Notably, Adnoc CEO and renewable energy pioneer Dr. Al Jaber earlier unveiled a ground-breaking facility that combined 5GW of solar energy with 19GWh of battery storage to deliver 1GW of clean energy continuously.
A Vision for Energy Security and Sustainability
With $225 billion in assets under management as of mid-2023, ADQ has a strong investment portfolio that spans 130 countries, with utilities and energy making up 39% of its holdings. The UAE’s larger commitment to energy security, the growth of renewable electricity, and strengthening commercial connections with the US is reflected in the cooperation with ECP.
The ADQ-ECP partnership is an important step in addressing the electricity needs of next-generation digital infrastructure while investigating avenues for sustainable power solutions as the global energy landscape changes.
