ArcLight Capital Partners has acquired energy developer Advanced Power and committed an initial $1 billion in equity to accelerate the development of new power infrastructure across North America. The strategic partnership is positioned to deploy over $5 billion in equity over the next five years, enabling more than 20 gigawatts (GW) of new generation capacity to support the rapid expansion of AI and data center infrastructure. 

Advanced Power’s current portfolio includes over 12 GW of conventional and renewable energy projects and more than 10 GWh of energy storage, which the firm says is sufficient to support over 20 large-scale data center campuses. With a pipeline of over 20 GW of advanced generation capacity, the combined development portfolio becomes one of the largest in the U.S., capable of powering more than 11 million homes. 

The partnership is also expected to generate significant economic impact, with the potential to create up to 80,000 jobs over the next five years, including approximately 10,000 permanent positions in construction, operations, and engineering. 

“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,” said Angelo Acconcia, Partner at ArcLight. “There is an urgent need for new large-scale, sustainable power solutions.” 

“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,” added Tom Spang, CEO of Advanced Power. 

Since its founding in 2001, ArcLight has owned, operated, or controlled over 65 GW of energy assets and 47,000 miles of electric and gas transmission infrastructure, representing more than $80 billion in enterprise value. The firm currently manages the largest private power infrastructure portfolio in North America, positioning it as a key player in the transition to scalable, sustainable energy solutions. 

While financial terms of the deal were not disclosed, legal and financial advisory roles were filled by top-tier firms. Latham & Watkins LLP served as legal counsel to ArcLight, while Morgan Stanley & Co. LLC acted as financial advisor and Sidley Austin LLP as legal counsel to Advanced Power. 

In May, ArcLight announced that its managed fund acquired a 25% interest in the Natural Gas Pipeline Company of America (NGPL), one of the largest interstate pipeline systems in the U.S. Prior to that, the firm purchased a 25% equity stake in the Gulf Coast Express Pipeline (GCX) from Phillips 66 for $865 million.