An investor consortium led by BlackRock’s infrastructure investment unit Global Infrastructure Partners (GIP) and EQT announced Monday a definitive agreement to acquire U.S.-based energy company AES for an enterprise value of $33.4 billion, with the companies citing the need for major investment to address the growing demand for affordable and sustainable energy solutions.
The announcement marks the latest in a series of major investments by private investors in U.S. power generation, including the $11.5 billion acquisition last year by Blackstone of utility company TXNM, amidst a surge in demand driven by the buildout of power-hungry AI infrastructure.
Masoud Homayoun, Head of EQT Infrastructure, said:
“As one of the largest energy infrastructure investors globally, we are seeing first-hand the increasing need for a secure energy supply amid expanding power demand worldwide.”
AES is one of the largest U.S.-based global power companies. The company invests in, owns and operates power generation, utilities and LNG infrastructure, with a generation fleet that includes solar, hydro, wind, natural gas, coal and battery storage assets. The company’s renewable energy growth has been particularly strong in recent years, with installed renewables capacity in the U.S. increasing by 60% over the past two years.
In a presentation to investors regarding the acquisition, AES said that the transaction will provide the company with financial flexibility, given the substantial capital needs to fund its U.S. renewables and utilities growth beyond 2027, noting that “new generation, primarily to serve data centers, requires significant capital for growth.” AES’ Chair Jay Morse added that given the significant need for capital to support the company’s growth plans, “in the absence of a transaction with the Consortium, the Company would likely require a plan that includes reduction or elimination of the dividend and / or substantial new equity issuances.”
BlackRock acquired GIP in 2024 for $12.5 billion, citing emerging long-term opportunities in areas including decarbonization, energy security, digital infrastructure, and supply chain transitions.
GIP Chairmand and CEO Bayo Ogunlesi said:
“AES is a leader in competitive generation, and at a time in which there is a need for significant investments in new capacity in electricity generation, transmission and distribution, especially in the United States of America, we look forward to utilizing GIP’s experience in energy infrastructure investing, as well as our operational capabilities to help accelerate AES’ commitment to serve the market needs for affordable, safe and reliable power.”
In addition to GIP and EQT, the investor consortium included California Public Employees’ Retirement System (CalPERS) and Qatar Investment Authority (QIA) as co-underwriters. The investors agreed to acquire AES for $15.00 per share in cash, for a total equity value of $10.7 billion, with net debt of $22.7 billion. The transaction is expected to close in late 2026 or early 2027.
