Digital infrastructure-focused asset manager DigitalBridge announced the acquisition of electrification infrastructure-focused investor ArcLight Capital Partners, with the transaction aimed at forming a leading alternative asset manager bringing together expertise in power, AI, and digital infrastructure, to address the opportunities presented by the expanding AI buildout, according to the companies.
The acquisition values Arclight at up to $1.05 billion, including a base purchase price of $650 million, and up to an additional $400 million of contingent consideration, and creates an infrastructure investment platform with combined assets representing more than $150 billion.
Founded in 2001, Boston-based ArcLight has focused on investments in power and electric infrastructure, and operates one of the largest private power generation portfolios and development pipelines in North America. Since inception, the firm has owned, controlled, or operated over 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value.
The acquisition follows the announced acquisition of DigitalBridge by SoftBank in December, with the deal designed to “strengthen SoftBank Group’s ability to build, scale, and finance the foundational infrastructure needed for next-generation AI services and applications.”
According to DigitalBridge, the Arclight acquisition will bring together Softbank’s leadership across the global technology and AI landscape, alongside leading digital and power infrastructure investment managers, “to invest behind growing demand for compute, connectivity, and power.”
DigitalBridge CEO Marc Ganzi said:
“AI is rewiring the global power equation, accelerating investment across generation, transmission, and behind-the-meter infrastructure. We believe the firms best positioned for this next phase of growth will be those that are able to underwrite both digital and energy infrastructure with equal depth and credibility. Together, DigitalBridge and ArcLight will help create a scaled infrastructure platform positioned for that convergence.”
The transaction is conditioned on the completion of SoftBank’s acquisition of DigitalBridge. Following the acquisition, ArcLight will operate as a separately managed business as part of the DigitalBridge platform.
ArcLight founder Daniel Revers said:
“I founded ArcLight in 2001, as one of the first dedicated power infrastructure investment platforms, and more than two decades later we are taking another significant step toward building a platform for the growing convergence of power, AI, and digital infrastructure. As demand for compute, connectivity, and electrification continues to accelerate, we believe the next phase of infrastructure investing will increasingly require integrated expertise across both power and digital infrastructure.”
