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.