Carlyle to sell $2.6bn data centre power unit to EQT for fivefold return

Private equity group Carlyle is set to make a more than fivefold return from the $2.6bn sale of a data centre power and infrastructure platform to EQT, amid a boom in AI build-out deals.

Created in 2021 by Carlyle’s infrastructure group, Copia Power develops data centre campuses across the south-western US, buying up land and connecting it with renewable power sources. It already has 2.6 gigawatts of energy generation and storage assets in operation or under construction.

Copia also owns a further 20GW of thermal and renewable power generation projects in development, enough to power the equivalent of 20mn homes and 9GW of power to supply its data centre campuses located in the south-east and Midwest.

Carlyle and EQT declined to comment on the financial details.

The deal underscores the intense dealmaking under way as data centre builders experiment with ways to solve power and infrastructure bottlenecks that have delayed many projects.

Earlier this year, KKR launched a $10bn data centre vehicle called Helix that plans to partner with utility Vistra Energy and chip giant Nvidia to solve tech bottlenecks. SoftBank-backed data centre builder DigitalBridge last month struck a deal to acquire energy private equity group ArcLight as part of its efforts to procure more energy.

EQT’s deal, which values Copia’s equity at $2.6bn, could be announced as soon as Thursday, according to people familiar with the matter. At that valuation, Carlyle would have made more than five times its initial investment, according to a person briefed on the matter.

AI is prompting a once-in-a-generation uplift in demand for power across the US, with electricity demand set to increase by 21 per cent by 2030, according to consultancy ICF. The sale of Copia drew interest from other infrastructure investors as well as hyperscalers, the people added.

EQT has poured money into the AI build-out through its infrastructure fund and is acquiring Copia as part of a plan to offer tech giants a one-stop solution to their AI infrastructure needs.

The Swedish private capital giant, with more than $300bn in assets, owns data centre provider EdgeConneX, which oversees 90 facilities across 20 countries, and earlier this year it was also behind a $33.4bn take-private deal for AES alongside BlackRock-owned Global Infrastructure Partners.

EQT, which has more than $100bn invested in data centre and renewable power assets, last year also acquired wastewater specialist Seven Seas Water Group, a company that manages the water usage of data centres. Copia will help increase EQT’s exposure to power solutions for data centres and connect campuses directly with utilities.

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A record $240bn worth of power sector deals were agreed in the first half of the year, up 90 per cent from the same period last year, according to data from London Stock Exchange Group. Among the deals was NextEra Energy’s $420bn tie-up with Dominion Energy to create the world’s largest listed power group.

Carlyle, which has $465bn of assets under management, earlier this year partnered with Diversified Energy to buy $1.2bn of oil and gas assets from Camino Natural Resources, looking to benefit from increasing gas demand from data centres. In 2024, the private equity group sold gas producer Cogentrix for $3bn.

Guggenheim Securities and JPMorgan served as financial advisers to Carlyle, while Latham & Watkins provided legal counsel.