ArcLight's Major Acquisition of Advanced Power Set to Transform Power Infrastructure

ArcLight's Strategic Acquisition of Advanced Power

On July 24, 2025, ArcLight Capital Partners announced its acquisition of Advanced Power, marking a significant development in the power infrastructure sector. Founded in 2000, Advanced Power is a prominent power developer and manager specializing in modern energy solutions. With an initial equity commitment of $1 billion, this partnership is projected to invest over $5 billion in total in the next five years, aiming to enhance North America's power capabilities significantly.

Investment for Sustainable Growth

ArcLight’s acquisition comes at a crucial time as the demand for sustainable energy sources continues to rise, particularly in the realms of artificial intelligence (AI) and data centers. This strategic partnership promises to enable the addition of more than 20 gigawatts (GW) of new power generation, facilitating robust support for the growing needs of utilities and data center developers. By implementing innovative and low-carbon power solutions, the partnership is set to effectively address the complex challenges faced by the power sector today.

According to Angelo Acconcia, a Partner at ArcLight, “Accelerated access to power infrastructure has become the critical bottleneck to enabling and meeting data center and AI growth goals.” This partnership not only promises to meet the escalating electrical demands across various sectors but also aims to improve grid reliability—an essential feature in today’s energy landscape.

Job Creation and Economic Impact

An exciting prospect of this partnership is the potential economic impact it brings along. It is estimated that the investment could create approximately 80,000 jobs, including around 10,000 permanent positions over the next five years. This job creation is vital for local economies and communities, providing employment opportunities while fostering advancements in energy infrastructure.

Advanced Power boasts a robust portfolio, currently comprising 12+ GWs of conventional and renewable projects and over 10 GWh of energy storage. This infrastructure has the capacity to deliver reliable power to more than 20 large-scale data center campuses, a necessary component in the age of digital transformation.

Tom Spang, CEO of Advanced Power, emphasized the importance of this partnership, stating, “Finding a partner and investor aligned with our core principles was imperative, and ArcLight shares decades of complementary expertise built on strong relationships.” Such collaboration is expected to yield significant benefits for communities while simultaneously addressing global CO2 emissions—a commitment both companies hold dearly.

A New Chapter in Power Development

ArcLight brings to the table a vast experience in power management, having owned and operated over 65 GW of assets and 47,000 miles of electric and gas transmission infrastructure since its inception in 2001. With over $80 billion in enterprise value, ArcLight’s operational expertise positions it uniquely to deliver innovative electricity solutions crafted specifically to meet the increasing power demands of AI and data center markets.

This partnership marks the beginning of a new era in power infrastructure development, where sustainability and reliability take center stage. Through their combined resources and industry relationships, ArcLight and Advanced Power are set to deliver comprehensive power solutions that not only cater to market needs but also contribute to making the North American power grid more sustainable and resilient.

As power infrastructure develops, both companies remain committed to bringing value to clients, ensuring that the pressing needs for energy reliability and sustainability are met in the years to come. With this acquisition, ArcLight Capital Partners and Advanced Power work together not only to shape the future of energy but to provide communities with sustainable energy solutions that foster economic growth and stability.

For more information on ArcLight Capital Partners, visit ArcLight. To learn about Advanced Power, check out their website at Advanced Power.