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- KKR and Energy Capital Partners (ECP) are launching a $50 billion strategic partnership to fund AI-driven data center and power infrastructure expansion globally.
- The partnership aims to meet growing AI demands by addressing the need for large-scale investments in data centers and power generation, which are expected to exceed $1 trillion by 2030.
- This collaboration will accelerate the delivery of sustainable, reliable infrastructure to support the rapid scaling of AI technologies and cloud computing.
KKR and ECP’s $50B partnership will drive significant investment in data centers and power infrastructure, responding to the growing demand driven by AI and cloud computing. The strategic partnership combines KKR’s expertise in digital infrastructure with ECP’s leadership in power generation and energy transition, creating a comprehensive solution for the scaling of AI infrastructure.
What’s happening:
AI advancements are increasing the demand for data centers, but the limited availability of reliable power is a major hurdle. U.S. data center demand is expected to triple by 2030, driving an investment of over $1 trillion. KKR and ECP’s partnership is designed to address this challenge by providing scalable, sustainable infrastructure solutions.
Why it matters:
Joe Bae, Co-Chief Executive Officer at KKR, said:
“Data center power demand is expected to grow by 160% by 2030, 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.”
Big picture:
AI and cloud infrastructure projects require significant investment and power to function effectively. Single data center campuses are projected to exceed 1 gigawatt of power demand, requiring over $15 billion in capital for infrastructure and equipment. This partnership will help hyperscalers and other market participants meet these massive demands.
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Quotable:
Doug Kimmelman, Founder and Senior Partner, ECP, said:
“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. 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.”
What’s next:
KKR and ECP will work with utilities, developers, and independent power producers to accelerate data center and power infrastructure deployment globally. With over 8 GW of existing data center pipeline and 100 GW of power generation assets, this partnership is positioned to deliver results quickly and sustainably.