KKR and Energy Capital Partners are set to invest $50 billion in data center and power generation projects to fuel the rapid growth of artificial intelligence, which is placing immense demand on the U.S. power grid. Most of this capital will be deployed over the next four years, the companies announced.
KKR, a leading global investment firm, and private-equity company Energy Capital Partners (ECP) have already heavily invested in the infrastructure supporting AI’s expansion. Their partnership aims to streamline power access for large tech firms facing constraints as data center development surges. With limited power supply in certain regions, these companies are racing to secure grid access.
“The capital requirements are enormous, and the availability of electricity is perhaps the biggest bottleneck,” said ECP founder and senior partner Doug Kimmelman. ECP’s portfolio includes traditional and renewable energy companies, such as Calpine, a major U.S. power producer. Recently, ECP increased its natural gas investments, which Kimmelman sees as essential to reliably powering data centers. He expects to expand gas investments while also exploring carbon reduction options, including renewable energy and carbon capture.
“Natural gas will play a central role here,” Kimmelman added. “It can effectively support intermittent renewables.”
Natural-gas plants offer a quick solution to AI’s energy demands, but they create a challenge for tech companies aiming to reduce carbon emissions. Companies like Microsoft, Google, and Amazon are now exploring clean energy options, including investing in nuclear power, though many of these projects rely on emerging technologies and face financial and regulatory obstacles.
For now, sustainability goals are largely sidelined as companies prioritize rapid data center construction, according to McKinsey.
Waldemar Szlezak, head of digital infrastructure at KKR, explained that the collaboration with ECP aims to overcome immediate power challenges faced by tech companies. KKR has invested over $29 billion in digital infrastructure to date.
“Data centers have shifted from being a real-estate business to a power-first business,” Szlezak noted. “The current approach is no longer sufficient.”
