JEDDAH: Saudi Arabia’s Acwa and US investment firm EIG Management Co. plan to commit about $4 billion in initial equity to a joint venture targeting investments in US power generation and energy storage. 

The venture, called Plenum Power, will pursue acquisitions and develop new projects as electricity demand rises, driven by data centres, artificial intelligence and electrification. 

Acwa will hold a 49 percent stake in the venture, while EIG will own 51 percent, according to a filing on the Saudi Exchange. The agreement was signed on Oct. 28. 

The investment comes as US electricity demand is projected to increase by more than 420 terawatt-hours between 2025 and 2030, with data centres expected to account for about half of the growth, the International Energy Agency has forecast.

US power demand drives opportunities 

Samir Serhan, CEO of Acwa, said the US represented a significant opportunity for the company to apply its expertise in developing, financing, and operating large-scale power infrastructure. 

“As electricity demand accelerates, meeting that growth is expected to require substantial investment, reliable generation capacity, and the ability to deliver projects efficiently and at scale,” Serhan said. 

He added that the partnership combined complementary strengths in infrastructure investment, development and operations, creating a foundation to pursue opportunities across conventional and renewable power generation and energy storage. 

Acwa said the agreement was not expected to have a material financial impact on the company.

The financial effects of future transactions will be assessed and disclosed separately in line with applicable regulations. 

R. Blair Thomas, CEO of EIG, said: “The US power industry is at an inflection point, with demand accelerating as AI, data centers and electrification reshape the market.”  

Thomas said recent dislocation in US renewable energy development, which he attributed to regulatory changes, supply-chain inflation, and interest rates, created an attractive entry point for a new entrant at scale. 

He added: “We believe those dynamics will drive consolidation across the industry and that Acwa’s global operating capabilities, combined with EIG’s investment, financing and platform-building experience, position Plenum Power well in this evolving market environment." 

Under the joint venture agreement, the partnership will evaluate “acquisition and organic development opportunities” in US power infrastructure, according to the bourse filing.  

The initial equity target represents planned funding for the venture, rather than capital already deployed. The partnership’s capital deployment will be subject to agreed governance arrangements, investment criteria and approval of specific transactions, the filing added. 

Acwa expands its international footprint 

Acwa’s portfolio comprised 111 assets across 16 countries as of June, spanning operating projects, construction and advanced development. The portfolio had power generation capacity of 98.2 gigawatts and desalination capacity of 9.7 million cubic metres per day, according to the company’s first-half results. 

The US venture would give Acwa a platform to pursue opportunities in a market where rising electricity consumption is increasing the need for generation and supporting infrastructure. 

EIG had $27.1 billion in assets under management as of June 30. Over its 44-year history, the firm has committed more than $55 billion to the energy sector across 429 projects and companies in 44 countries. 

Headquartered in Washington, D.C., EIG also has offices in Houston, London, and Sydney, as well as Rio de Janeiro, Hong Kong and Seoul.