National Grid’s commercial division National Grid Ventures is set to invest $1.75bn for a 35% interest in Joulent to deliver advanced power and electrical infrastructure solutions, catering specifically to the expanding needs of data centres and AI technology across the US.
The deal marks National Grid Ventures’ entry into an area described as among the fastest-growing segments for electricity demand in the country.
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The partnership plans to address the rising demand from data centres and other heavy power users, which is creating a need for scalable power solutions, often surpassing the timelines of traditional grid connections.
Joulent has developed collaborations and resources to create integrated power solutions specifically tailored for US data centres, expediting their access to power.
These solutions encompass co-located gas and renewables integration, battery storage, and ’Across-the-Meter’ grid connections.
Designed for rapid scalability to meet immediate large power demands, Joulent’s offerings support economic growth without burdening local communities, while paving the way for future grid integration.
National Grid CEO Zoë Yujnovich said: “Our investment in Joulent is a disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy.
“Through National Grid Ventures, we are gaining exposure to a major source of electricity demand growth with strong partners. It extends National Grid’s core strengths of investing in long-duration infrastructure with predictable cash flows and attractive risk-adjusted returns.”
Joulent’s initial focus will be its first major scheme, Project Kilby, a 2.67GW co-located power facility in West Texas.
Developed in a 50/50 partnership with Chevron, the project is set to supply dedicated electricity to a Microsoft-operated data centre through a 20-year purchase agreement.
Key equipment, including GE Vernova turbines and engineering contracts, have already been secured. The facility aims to deliver first power by 2028.
The partnership aims to offer insights and foster relationships that will enhance National Grid’s data centre connection programme. This initiative anticipates connecting over 10GW of demand across the US and the UK in the next five years.
The investment will be funded from National Grid’s balance sheet and is separate from its existing £70bn (nearly $90bn) capital programme through 2031. A final investment decision is expected in 2026.
