ADQ, ECP to form $25 billion energy venture to power AI
New venture to create 25GW of new power infrastructure to support data centres
#UAE #US #energy - Abu Dhabi sovereign wealth fund ADQ and US-based Energy Capital Partners (ECP) have announced a $25 billion joint venture to develop next-generation power generation infrastructure in the United States. The partnership aims to provide 25GW of new power capacity, addressing the surging energy demands of AI-driven data centres and other energy-intensive industries. The announcement was made during the U.S. visit of Deputy Ruler of Abu Dhabi and National Security Adviser His Highness Sheikh Tahnoon bin Zayed Al Nahyan, who is also chairman of ADQ
SO WHAT? - Abu Dhabi is becoming a powerful force in AI ecosystem investment, with global stakes in AI software, semiconductor manufacture, data centres and energy. Although Abu Dhabi’s sovereign wealth fund Mubadala has been the primary mover in global tech investment, more of the emirate’s holding companies and investment groups are now targeting overseas technology and tech-related investments. With assets across energy production and utilities, ADQ has strong expertise in power and infrastructure development and operations to bring to the ECP joint venture and others in the future.
Key information about this announcement:
Abu Dhabi investment and holding group ADQ and US-based Energy Capital Partners (ECP) have formed a 50-50 partnership to invest $25 billion in US power infrastructure. The partnership aims to provide 25GW of new power capacity, addressing the surging energy demands of AI-driven data centres and other energy-intensive industries.
The announcement is one of several large-scale deals made during the U.S. visit of Deputy Ruler of Abu Dhabi and National Security Adviser His Highness Sheikh Tahnoon bin Zayed Al Nahyan, who is also chairman of ADQ. MGX and Abu Dhabi AI holding group G42.
With an initial $5 billion commitment from both partners, the new energy venture will focus on U.S. greenfield development, new builds, and expansion of power generation assets. However, select international markets may also benefit from a portion of the investment.
AI and high-density data centres are projected to increase global power demand by 50% by 2027 and 165% by 2030.
The US Department of Energy estimates that data centre energy consumption has tripled over the past decade and could double or triple again by 2028. Meanwhile, the International Energy Agency (IEA) reports that US electricity demand will increase by the equivalent of California’s total power consumption in the next three years.
ADQ, established in 2018, manages a diversified portfolio spanning energy, healthcare, mobility, and logistics.
ECP, founded in 2005, has raised over $30 billion in capital and is one of the largest private owners of power generation and renewables in the US.
ZOOM OUT - The surge in AI-driven infrastructure is driving record investments in power generation, with governments and private investors scrambling to meet demand. The ADQ-ECP partnership reflects a global shift towards securing energy resilience for the digital economy, mirroring similar initiatives in Europe, the Middle East, and Asia. As AI continues to shape the future, energy security is becoming a crucial factor in economic competitiveness and technological leadership.
[Written and edited with the assistance of AI]
Read more announcements from Sheikh Tahnoon’s March 2025 US visit:
AI infrastructure consortium expands with NVIDIA, xAI (Middle East AI News)
Abu Dhabi signs sovereign cloud deal with Microsoft, G42 (Middle East AI News)