ABU Dhabi ADQ, American PE company to invest $ 25 billion in US data projects

The Sovereign Wealth Fund ADQ and the US private Energy Capital Partners or ECP have signed an investment partnership deal of $ 25 billion on an increase in electricity production, mainly in the United States, to serve the needs of the data center.

The partnership “aims to serve the growing needs of the power of data centers, hypercaline cloud companies and other energy intensive industries,” a joint statement from the companies said. “Because the continuity and quality of power supply are crucial to those high growth industries, the need for captive power plants that are nearby is often a prerequisite. The partnership focuses on meeting these needs in the long run.”

The 50-50 partnership will deploy the capital in order to invest more than $ 25 billion in projects worth $ 25 Gigawats through the development of the Greenfield site, new buildings and expansion of current infrastructure.

ADQ, created in 2018 in Abu Dhabi, United Arab Emirates, focuses on investment in critical infrastructure and global supply chains, while the ECP is described as the largest private owner of electricity and renewable energy assets in the US ADQ, while ECPs are has conquered until the ECP has increased more than 31 billion billion of capital engagements as it has come while the EC has increased more than 31 billion billion capital engagements as it has made commitments since 2005.

The partnership announcement comes at a time of rapid increase in energy needs -the demand for electricity is planned to grow in the United States after it remains largely flat for about 15 years, fed by new data centers, factories, electric vehicles and more hot and longer summers.

And as technological giants like Microsoft., Amazon and Google Compete to take on a leading role in the revolution of artificial intelligence, the data centers needed to power the growing technology consumes an ever -increasing amount of energy.

US Department of Energy, In a December 2024 report, It estimates that the growth of data centers in the US has tripled over the last decade and is expected to have the overall use of electricity in the data center to double or triple by 2028.

According to “a Report to the International Agency for International Energy Agency for Electricity,“US Data Center Sector” is expected to represent more than one-third of the additional demand in 2026. “Worldwide, overall electricity consumption can reach more than 1000 hours per teravat or TWh in 2026. This has increased from approximately 460 TWh in 2022 and” approximately equivalent to the consumption of Equivalent to Japan’s electricity consumption in 2022 and “approximately equivalent to Japan’s electricity consumption in 2022 and” approximately equivalent to Japan’s electricity consumption in 2022.

The deal comes as chairman of ADQ and National Security Advisor of United Arab Emirates Sheikh Tahnun bin Zait Al Nahian visited Washington, meeting with president Donald Trump and Elon MuskAmong other political and business leaders.

The UAE works to strengthen the US connections with AI and are looking for more access to US technology to build its own infrastructure and diversify its economy away from hydrocarbons.

The small, oil -rich sheikhdom in the Persian Gulf intensively pursue investments in artificial intelligence, data centers and technologies for the transition of energy as an AI dominance competition collects a pace.

The UAE MGX Investment Fund last year partnered with Microsoft and Blackrock to form a consortium for the initial goal of investing more than $ 30 billion in AI -related project Nvidia And Musk’s XAI announced that they would join the project.