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Abu Dhabi Forms $25 Billion US Energy Venture to Power AI

Mar 19, 2025 - financialpost.com
An Abu Dhabi sovereign investor, ADQ, is forming a $25 billion partnership with Energy Capital Partners to invest in power generation for data centers and AI projects in the US. Initially, they will invest $5 billion, with plans to expand to over $25 billion, focusing mainly on US assets. This venture follows a meeting between President Donald Trump and Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. The partnership aims to leverage the growing nexus between energy and technology, with a focus on AI and advanced microchips, despite previous export restrictions under former President Joe Biden.

The joint investment project is expected to appeal to the Trump administration's efforts to attract funds to the US and enhance energy production. The venture will use a mix of debt and equity to fund projects, with an initial pipeline considering deals for about 10 gigawatts of electricity production. The partners plan to focus on natural gas-fired power plants with potential carbon capture technology, catering to specific technology projects like data centers. The initiative aligns with the UAE's ambitions to become a regional AI powerhouse and strengthen its technological infrastructure in collaboration with American companies.

Key takeaways:

  • An Abu Dhabi sovereign investor is forming a $25 billion US partnership to invest in power generation for data centers and AI projects.
  • The partnership involves ADQ and Energy Capital Partners, with an initial investment of $5 billion.
  • The venture aims to invest mainly in US assets and plans to sign its first deals within a year.
  • The partnership will focus on developing power plants with lower carbon emissions, potentially incorporating renewables and battery storage.
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