National Grid invests $1.75 billion in Joulent for 35% stake

National Grid will invest $1.75 billion for a 35% stake in Joulent, a U.S. energy company building multi-gigawatt power infrastructure for data centers, as the British utility bets on surging electricity demand from artificial intelligence.

"Our investment in Joulent is a disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy," Zoë Yujnovich, National Grid's chief executive, said in a statement.

The investment, made through National Grid's ventures arm, values Joulent at about $5 billion. Joulent is developing the Kilby project in partnership with GE Vernova and Chevron Corp.'s Energy Forge subsidiary, which will deliver about 2.67 gigawatts of generation capacity to support a Microsoft-operated data center campus under a 20-year power purchase agreement. Joulent has formalized a 50% ownership interest in the project as part of the deal.

The deal underscores how utilities and energy companies are racing to meet the power demands of hyperscale data centers, which require vast amounts of electricity to run AI workloads. U.S. electricity demand from data centers is projected to more than double by 2030, according to industry estimates, driving a wave of investment in new generation capacity and grid infrastructure. National Grid, which operates both U.S. and U.K. networks, gains exposure to a rapidly growing segment of the power market without shifting costs onto ratepayers, the company said.

Joulent's "Across-the-Meter" model co-locates baseload power generation directly at customer sites, bypassing congested grid interconnection queues. The company plans to expand its project pipeline and add renewable energy sources, beginning with solar, over time. Chris James, Joulent's founder and chief executive, said the company is "building an independent company designed for speed, scale, and execution."

The investment builds on Joulent's existing strategic relationships with GE Vernova and Chevron. Pablo Koziner, chief commercial and operations officer at GE Vernova, said National Grid's investment "signals confidence in Joulent and the strong collaboration between our companies."

For National Grid, the deal provides a foothold in the U.S. market for large-load power infrastructure, diversifying its regional exposure while extending its core strengths in long-duration infrastructure investments. The company said it expects the investment to generate attractive risk-adjusted returns backed by contractual cash flows.

This article is for informational purposes only and does not constitute investment advice.