STOCK TITAN

KKR and Energy Capital Partners Announce $50 Billion Strategic Partnership to Support AI Growth Through Investments in Data Centers and Power Generation

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
partnership AI

KKR and Energy Capital Partners (ECP) have announced a $50 billion strategic partnership to accelerate the development of data center and power infrastructure for AI and cloud computing expansion. The collaboration combines KKR's digital infrastructure expertise with ECP's energy transition platform. U.S. data center demand is projected to nearly triple by 2030, requiring over $1 trillion in investment. A single planned data center campus requires about 1 gigawatt of power and $15 billion investment. The partnership has an 8 GW existing datacenter pipeline and 100 GW of operating and development-ready power generation capacity.

KKR e Energy Capital Partners (ECP) hanno annunciato un partenariato strategico da 50 miliardi di dollari per accelerare lo sviluppo di infrastrutture per data center e produzione di energia, in vista dell'espansione dell'IA e dell'informatica cloud. La collaborazione unisce l'expertise di KKR nelle infrastrutture digitali con la piattaforma di transizione energetica di ECP. Si prevede che la domanda di data center negli Stati Uniti quasi triplichi entro il 2030, richiedendo oltre 1 trilione di dollari di investimenti. Un singolo campus di data center pianificato necessita di circa 1 gigawatt di energia e di 15 miliardi di dollari di investimento. Il partenariato dispone di un pipeline di data center esistente di 8 GW e di una capacità di generazione di energia operativa e pronta per lo sviluppo di 100 GW.

KKR y Energy Capital Partners (ECP) han anunciado una asociación estratégica de 50 mil millones de dólares para acelerar el desarrollo de centros de datos e infraestructura energética para la expansión de la IA y la computación en la nube. La colaboración combina la experiencia en infraestructura digital de KKR con la plataforma de transición energética de ECP. Se prevé que la demanda de centros de datos en EE. UU. casi se triplique para 2030, lo que requiere más de 1 billón de dólares en inversiones. Un solo campus de centro de datos planificado necesita alrededor de 1 gigavatio de energía y 15 mil millones de dólares en inversión. La asociación cuenta con un pipeline de centros de datos existente de 8 GW y una capacidad de generación de energía operativa y lista para el desarrollo de 100 GW.

KKREnergy Capital Partners (ECP)는 AI와 클라우드 컴퓨팅 확장을 위해 데이터 센터 및 전력 인프라 개발을 가속화하기 위한 500억 달러 규모의 전략적 파트너십을 발표했습니다. 이 협력은 KKR의 디지털 인프라 전문성과 ECP의 에너지 전환 플랫폼을 결합합니다. 미국의 데이터 센터 수요는 2030년까지 거의 세 배로 증가할 것으로 예상되며, 1조 달러 이상의 투자가 필요합니다. 계획된 데이터 센터 캠퍼스 하나는 약 1GW의 전력과 150억 달러의 투자금을 필요로 합니다. 이 파트너십은 8GW의 기존 데이터 센터 파이프라인과 100GW의 운영 및 개발 준비가 완료된 발전 용량을 보유하고 있습니다.

KKR et Energy Capital Partners (ECP) ont annoncé un partenariat stratégique de 50 milliards de dollars pour accélérer le développement des centres de données et des infrastructures énergétiques pour l'expansion de l'IA et du cloud computing. Cette collaboration combine l'expertise de KKR en matière d'infrastructures numériques avec la plateforme de transition énergétique d'ECP. La demande de centres de données aux États-Unis devrait presque tripler d'ici 2030, nécessitant plus de 1 trillion de dollars d'investissements. Un seul campus de centre de données planifié nécessite environ 1 gigawatt d'énergie et 15 milliards de dollars d'investissement. Le partenariat dispose d'un pipeline existant de centres de données de 8 GW et d'une capacité de production d'énergie opérationnelle et prête au développement de 100 GW.

KKR und Energy Capital Partners (ECP) haben eine strategische Partnerschaft im Wert von 50 Milliarden Dollar angekündigt, um die Entwicklung von Datenzentren und Energieinfrastruktur zur Beschleunigung von KI und Cloud-Computing auszubauen. Die Zusammenarbeit vereint KKRs Expertise im Bereich digitale Infrastruktur mit ECPs Plattform für Energiewende. Die Nachfrage nach Datenzentren in den USA wird bis 2030 voraussichtlich fast dreimal so hoch sein, was mehr als 1 Billion Dollar an Investitionen erfordert. Ein geplanter Datenzentrumscampus benötigt etwa 1 Gigawatt Energie und 15 Milliarden Dollar Investition. Die Partnerschaft verfügt über eine bestehende Pipeline von 8 GW für Datenzentren und über 100 GW an betriebsbereiter und entwicklungsfähiger Erzeugungskapazität.

Positive
  • Strategic $50 billion partnership combining complementary expertise
  • 8 GW existing datacenter pipeline and 100 GW of power generation capacity
  • Access to ProEnergy's aeroderivative power turbine manufacturing capabilities
  • Significant existing infrastructure: KKR's $77B AUM and ECP's 83 GW power generation portfolio
Negative
  • High capital requirements: $15B investment needed per data center campus
  • Execution risks in meeting rapid infrastructure scaling demands
  • Dependency on successful coordination with utilities and power developers

Insights

This $50 billion strategic partnership between KKR and ECP represents a significant market opportunity in the rapidly growing AI infrastructure sector. The deal targets a projected $1 trillion market for U.S. data center investments by 2030, with demand expected to grow by 160%. The partnership combines KKR's digital infrastructure expertise with ECP's power generation capabilities, creating a formidable platform with:

  • 8+ GW existing datacenter pipeline
  • 100 GW of operating and development-ready power generation
  • Comprehensive coverage across the entire value chain from power generation to data center operations

This positions KKR strategically in two high-growth sectors: AI infrastructure and sustainable energy. The scale and timing of this partnership could provide KKR with a significant first-mover advantage in addressing the critical bottleneck of power infrastructure for AI development.

The partnership addresses a critical infrastructure gap in AI development. Current power grid limitations are becoming a major constraint for AI expansion, with single data center campuses requiring 1+ GW of power and $15 billion in investment. The combined capabilities of both firms create a unique value proposition:

  • ECP's extensive utility relationships and power generation portfolio
  • KKR's $77 billion infrastructure AUM and experience in digital infrastructure
  • ProEnergy's aeroderivative power turbine manufacturing capabilities

This vertical integration could significantly reduce project development timelines and costs, providing a competitive advantage in capturing market share in this rapidly growing sector.

Strategic partnership with available capital and scale ready to meet the urgent need to fund data center, power, and grid infrastructure in the U.S. and globally

Scaling of AI and cloud infrastructure in the U.S. expected to cost at least $1 trillion by 2030

NEW YORK & SUMMIT, N.J.--(BUSINESS WIRE)-- KKR, a leading global investment firm, and Energy Capital Partners (“ECP”), the largest private owner of power generation and renewables in the U.S., today announced a $50 billion strategic partnership. The collaboration aims to accelerate the development of data center and power generation and transmission infrastructure for the rapid expansion of artificial intelligence (AI) and cloud computing globally. This strategic partnership combines KKR’s deep expertise in digital infrastructure, power, and the energy value chain with ECP’s premier energy transition platform in electrification and power and renewable generation.

Advancements in AI are fueling an unprecedented demand for data centers, but a limited availability of reliable power is impeding the strategic goals of the world’s largest technology companies, enterprises, and governments looking to deploy AI. U.S. data center demand is projected to nearly triple by 2030, driving over $1 trillion in investment1. A single planned data center campus regularly exceeds 1 gigawatt (GW) of power demand and requires an investment of $15 billion or more across data center and power equipment.

“Data center power demand is expected to grow by 160% by 20302, a demand that will go unmet without the right infrastructure in place, which is critical to boosting productivity, supporting electrification and helping countries create a competitive edge in AI. At the same time, the scaling of this mission-critical infrastructure must be done affordably, reliably, and sustainably, while addressing the needs of all stakeholders – from technology companies to end consumers,” said Joe Bae, Co-Chief Executive Officer, KKR.

"In order for the U.S. to maintain its advantage in AI, we will need massive new investments in power infrastructure on an accelerated basis that are capable of addressing concerns related to electricity prices and carbon emissions,” said Doug Kimmelman, Founder and Senior Partner, ECP. “We are committed to delivering solutions for our strategic partners and our investors through ECP’s strong utility relationships and expertise investing across a wide variety of power generation, renewable, and battery storage assets.”

“Building out AI and power infrastructure will require collaboration across industries. KKR and ECP’s strategic partnership offers a new approach, with immediately available capital and the capabilities needed to deploy that capital to accelerate this effort. With our combined footprint and capabilities, we have a more than 8 GW existing datacenter pipeline, 100 GW of currently operating and development-ready power generation, and significant experience working with stakeholders across both industries to help realize this opportunity quickly and responsibly,” said Waldemar Szlezak, Partner and Global Head of Digital Infrastructure, KKR.

“The ECP and KKR teams have decades of experience working with constituents to bring infrastructure projects to completion on time and on budget,” said Tyler Reeder, Managing Partner, ECP. “This experience, along with ECP’s existing power and renewable asset base, history of decarbonizing existing assets through carbon capture and asset repowering, as well as KKR’s leading digital practice, provide our partners a clear path to delivering much needed computing capacity through a sustainable lens.”

The strategic partnership is designed to deliver scaled data center and power solutions for hyperscalers and other market participants to support their infrastructure needs across geographies to drive model training, tuning, and inferencing at scale. KKR and ECP plan to engage with industry leaders including utilities, power and data center developers, and independent power producers to accelerate the delivery of data center campuses required by hyperscalers.

“To develop a winning solution to support the growth of AI in the U.S., you need world-class capabilities along every step of the value chain – including power generation, transition, and deployment within data centers to serve hyperscalers and other market participants. With KKR and ECP’s industry-leading solutions in data center development, power, renewables, and capital formation, this partnership is bringing to bear the best of the best to accelerate the build out of AI,” said Neil Chatterjee, former FERC Chairman, Senior Advisor to KKR, and Board Member of ECP-owned Convergent Energy.

KKR is funding the strategic partnership from existing infrastructure and real estate strategies and insurance accounts managed by KKR. ECP is funding the strategic partnership from existing and future infrastructure capital pools.

KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world with $77 billion in infrastructure assets under management as of September 30, 2024. To date, KKR has invested more than $29 billion across 22 investments in relevant digital infrastructure companies across data centers and fiber, as well as $15 billion in power, utilities, and energy. KKR’s significant global data center footprint spans four platforms with several GW of deployed assets across over 100 facilities and more under development globally. KKR’s portfolio also includes over 10 renewable energy developers with over 50 GW of global development pipeline.

ECP has owned, controlled, and operated over 83 GW of power generation across all major U.S. power markets, spanning a variety of technologies including natural gas, geothermal, hydro, solar, wind, battery storage, and waste-to-energy since its founding in 2005. The ECP team, comprised of 90 people with 800 years of collective industry experience, deep expertise, and extensive relationships, has completed more than 100 equity transactions (representing nearly $60 billion of enterprise value), the majority of which have been focused on power and renewables. In addition to being the largest private owner of power and renewable generation assets in the U.S. through companies like Calpine, ECP is also the majority owner of an aeroderivative power turbine platform and manufacturer, ProEnergy, which will provide an important link in accelerating the delivery of electricity to data center projects.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About Energy Capital Partners

Energy Capital Partners (ECP), founded in 2005, is a leading investment firm across energy transition infrastructure, with a focus on investing in electricity and sustainability infrastructure providing reliable, affordable and clean energy. Earlier this year, ECP combined with Bridgepoint Group to form a global leader in value-add middle-market investing, with a combined $73 billion of assets under management across private equity, credit, and infrastructure. For more information, visit www.ecpgp.com and www.bridgepoint.eu.

1 Goldman Sachs Global Macro Research Report, “Top of Mind,” 25 June 2024.
2 Goldman Sachs Equity Research Report, “AI, data centers and the coming US power demand surge,” 28 April 2024.

KKR

Liidia Liuksila

Media@KKR.com



ECP

FGS Global

Akash Lodh / Nick Rust

ECP@fgsglobal.com

Source: KKR

FAQ

What is the value of KKR and ECP's strategic partnership announced in 2024?

KKR and Energy Capital Partners announced a $50 billion strategic partnership to support AI growth through investments in data centers and power generation infrastructure.

How much data center demand growth is projected in the US by 2030?

U.S. data center demand is projected to nearly triple by 2030, driving over $1 trillion in investment.

How much power does a single data center campus require according to KKR's announcement?

A single planned data center campus regularly exceeds 1 gigawatt (GW) of power demand and requires an investment of $15 billion or more.

What is the combined power generation capacity in KKR and ECP's partnership?

The partnership has an 8 GW existing datacenter pipeline and 100 GW of currently operating and development-ready power generation capacity.

KKR & Co. Inc.

NYSE:KKR

KKR Rankings

KKR Latest News

KKR Stock Data

122.71B
887.44M
24.03%
61.82%
1.31%
Asset Management
Investment Advice
Link
United States of America
NEW YORK