ADQ And ECP Forge $25 Billion U.S. Power Investment Alliance

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Abu Dhabi's sovereign wealth fund, ADQ, has entered into a strategic partnership with U.S.-based private equity firm energy Capital Partners to invest over $25 billion in energy infrastructure projects across the United States. This 50-50 collaboration aims to develop 25 gigawatts of new power generation capacity, primarily to meet the escalating electricity demands of data centers and other energy-intensive industries.

The joint venture is set to focus on constructing new natural gas-fired power plants co-located with data centers. This approach is intended to provide dedicated power sources for these facilities, operating independently from the broader power grids. The initiative addresses the substantial energy requirements driven by advancements in artificial intelligence and the rapid expansion of hyperscale cloud computing services.

Doug Kimmelman, Founder and Executive Chairman of ECP, emphasized the critical need for new electricity supplies to support AI-driven economic growth in the U.S. He stated that the partnership with ADQ is poised to deliver the necessary power resources to the burgeoning AI data center sector. Kimmelman highlighted that the venture's focus will be on developing new natural gas-fired power generation assets at scale to meet the timely needs of hyperscalers.

The first projects under this partnership are anticipated to become operational within approximately three years. The collaboration aligns with analysts' projections of a sustained increase in U.S. power demand, following years of relative stability. This trend is partly attributed to the growing energy consumption of data centers, which are integral to supporting AI applications and industrial electrification.

ADQ's Chief Investment Officer, Murtadha Al Hashmi, remarked that the partnership with ECP is a strategic move to address shifting structural dynamics in the energy sector. He noted that the collaboration allows for significant investments in generation and related infrastructure assets that support accelerating demand for power, thereby promoting industrial progress and contributing to the future-proofing of economies.

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The timing of this announcement coincides with a visit to the U.S. by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and chairman of ADQ. During his visit, Sheikh Tahnoon met with President Donald Trump to discuss strengthening bilateral ties in sectors such as artificial intelligence and infrastructure. This visit underscores the UAE's commitment to diversifying its economy and establishing itself as a global hub for advanced technologies.

Established in 2018, ADQ manages a diverse portfolio of assets across various sectors, including energy, critical minerals, transport, and logistics. As of June, the fund's assets under management were valued at $225 billion. This partnership with ECP represents a significant expansion of ADQ's investment footprint into the U.S. energy sector, reflecting a strategic alignment with global trends in technology and infrastructure development.

ECP, founded in 2005 by former Goldman Sachs executives, specializes in investments across power generation, renewable energy, and energy storage assets. The firm has a history of developing and managing energy infrastructure projects, positioning it well to collaborate on this large-scale initiative. ECP's expertise in the U.S. energy market complements ADQ's investment capabilities, creating a robust platform for addressing the increasing power demands of modern industries.

Also published on Medium .

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