ArcLight Secures $1 Billion Investment from CPP to Boost AlphaGen Power Infrastructure

ArcLight Capital Partners Announces $1 Billion Investment by CPP Investments in AlphaGen

ArcLight Capital Partners has made headlines with their recent announcement of a substantial investment by the Canada Pension Plan Investment Board (CPP Investments). The definitive agreement entails a $1 billion investment aiming for a strategic minority position in AlphaGen. This partnership is expected to significantly bolster AlphaGen's position as one of the largest independent power portfolios in the United States, boasting over 11 gigawatts (GW) of critical power assets strategically located across the nation.

In an era where power supply is pivotal to the burgeoning demand driven by artificial intelligence (AI), this investment addresses the urgent need for robust infrastructure that can provide reliable, sustainable, and swift power. ArcLight recognizes the necessity to fulfill increasing power requirements, particularly in rapidly growing markets like Pennsylvania and Ohio. Through this investment, the intention is to enhance existing power resources and develop new facilities to meet the rising demand for electricity in these areas.

Bill Rogers, the Head of Sustainable Energies at CPP Investments, remarked, "AlphaGen provides efficient, reliable power in some of the most high-demand U.S. markets. As demand for electricity accelerates, these assets will play a vital role in balancing renewable growth with the need for reliable supply." This statement hints at the crucial role that AlphaGen will play as electricity consumption continues to rise, particularly in sectors driven by AI and electrification.

Angelo Acconcia, President of ArcLight, expressed his enthusiasm saying, "We are excited to partner with CPP Investments in AlphaGen. We look forward to collaborating with their team to drive further growth in the platform while delivering on the increasing reliability and capacity needs of AI and electrification power demand across North America."

The partnership with CPP Investments aligns with ArcLight’s commitment to investing in critical electrification infrastructure. Founded in 2001, ArcLight has established a commendable portfolio, having invested in and managed approximately 70 GW of assets encompassing both electric and gas transmission infrastructure. Their operationally intensive investment approach, which leverages a dedicated team of specialists, positions them strategically to address the complex and evolving demands within the power sector.

With regulatory approvals pending, the deal is expected to finalize in the first half of 2026. Both ArcLight and CPP Investments see this partnership as a forward-looking step in supporting the global economy's energy transition. As renewable energy sources become increasingly integrated into the power grid, investments like this will be critical in ensuring a balanced approach to energy supply and demand.

The investment is part of a broader strategy from CPP Investments, which is known for funding a diverse range of assets within the global economy, including power generation, midstream operations, renewables, and conventional energy. At the time of June 30, 2025, the total assets for the CPP Fund stood at an impressive C$731.7 billion, further illustrating the scale and capability of CPP Investments in fostering substantial growth within critical sectors.

AlphaGen stands at the forefront of addressing the intricate needs of power infrastructure during a period of rapid technological advancement. Its leadership, characterized by a profound experience in managing power assets, is expected to navigate the complexities and opportunities presented by this expansive investment.

In summary, this $1 billion investment by CPP Investments into AlphaGen reflects a steadfast commitment to enhancing power reliability and sustainability in the face of mounting demand from digital industries. With strategic growth on the horizon, both the partners and stakeholders are poised for a sustainable and promising future in electrification.

For more information about ArcLight Capital Partners, visit www.arclight.com. To learn about the Canada Pension Plan Investment Board and its investment strategies, visit www.cppinvestments.com. For updates on AlphaGen, check www.alphagen.com.