Senate panel probes private equity data center investments over rising U.S. power costs

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Senate probes data center costs

Highlights

Senator Warren requested KKR & Co, BlackRock, Brookfield Infrastructure Partners, and Blackstone detail their $45.70 billion in 2025 data center investments and related ownership, with replies due June 27.
KKR and Global Infrastructure Partners' $15 billion CyrusOne acquisition, BlackRock's $12.5 billion GIP purchase, Brookfield's $775 million Centersquare deal, and Blackstone's $10 billion QTS acquisition exemplify the sector's consolidation.
A cited 2026 study projects U.S. electricity use from data centers climbed from 1.9% in 2018 to 4.4% in 2023, with national average power costs potentially rising by 6% to 29% by 2030, and Virginia up to 57%.

Inquiry targets data center ownership and financing

As reported by the Senate Committee on Banking, Housing, and Urban Affairs, Warren sent letters to KKR & Co, BlackRock, Brookfield Infrastructure Partners and Blackstone about their growing involvement in data center development and operations. She is seeking details on their investments, ownership across the data center supply chain and measures to prevent harm to American consumers, with responses due by June 27.

Warren says private equity investment in data centers rose to $45.70 billion in 2025, a five-year high, and is predicted to account for $350 billion of data center financing by 2028. In the letters, she argues that the scale of funding gives buyout firms increasing influence over a sector that is becoming more important to the U.S. power system.

The letters cite several major transactions, including KKR and Global Infrastructure Partners' $15 billion acquisition of CyrusOne, which manages 50 data center facilities and 800 clients across North America, Europe and Asia. Warren also points to BlackRock's $12.5 billion acquisition of GIP in 2024, Brookfield's 2024 combination of Cyxtera and Evoque into Centersquare in a $775 million deal, and Blackstone's 2021 acquisition of QTS for at least $10 billion.

Utility cost concerns widen political and industry pressure

Warren links the investment surge to broader concerns about electricity affordability. She cites a 2026 study saying U.S. electricity use attributed to data centers rose from 1.9% to 4.4% between 2018 and 2023.

The same study estimates national average electricity costs could increase by 6% to 29% by 2030, while states with heavy data center concentration, including Virginia, could face increases of as much as 57%, primarily tied to data center expansion. Warren says the companies must explain how they are mitigating those risks and ensuring that American families are not exploited as capital continues to flow into the sector.

In our earlier article on Brookfield Corporation (BN), we looked at how the firm’s diversification push into AI infrastructure and renewables was shaping investor sentiment alongside key technical levels for the stock. We also noted Brookfield’s expanding slate of partnerships and large-scale commitments aimed at powering AI growth with new energy capacity, while flagging that momentum could face near-term consolidation risks.

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