Carlyle set to sell Copia Power to EQT in $2.6bn AI infrastructure deal

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Carlyle sells Copia Power to EQT

Highlights

Carlyle is set to sell Copia Power to EQT at a $2.6bn equity valuation, generating more than five times Carlyle’s initial investment.
Copia Power controls 2.6GW of operational or under-construction assets, 20GW in development, and 9GW aimed at supplying southeastern and Midwest U.S. data centre campuses.
U.S. power demand is forecast to rise 21 per cent by 2030 due to AI, driving record $240bn power sector deal activity in H1, up 90 per cent year-on-year.

Transaction terms and asset portfolio

As reported by Financial Times, EQT is acquiring Copia Power at an equity valuation of $2.6bn, with the deal potentially announced as soon as Thursday, according to people familiar with the matter. At that valuation, Carlyle is poised to make more than five times its initial investment, according to a person briefed on the matter.

Copia was created in 2021 by Carlyle’s infrastructure group and develops data centre campuses across the southwestern U.S. by acquiring land and linking sites to renewable power sources. The platform already has 2.6 gigawatts of energy generation and storage assets in operation or under construction.

The company also owns 20GW of thermal and renewable power generation projects in development, as well as 9GW of power intended to supply data centre campuses in the southeastern U.S. and the Midwest. Carlyle and EQT declined to comment on the financial details.

Guggenheim Securities and JPMorgan are serving as financial advisers to Carlyle, while Latham & Watkins is providing legal counsel.

AI-driven power demand lifts deal activity

The transaction reflects intense dealmaking as data centre developers seek ways to address power and infrastructure bottlenecks that are delaying projects. EQT is buying Copia as part of a strategy to offer technology groups a broader solution for AI infrastructure needs, including direct links between campuses and utilities.

Demand for electricity in the U.S. is set to rise 21 per cent by 2030, according to consultancy ICF, as AI drives a major increase in power consumption. People familiar with the matter said the sale also attracted interest from other infrastructure investors and hyperscalers.

EQT has more than $100bn invested in data centre and renewable power assets and already owns data centre provider EdgeConneX, which oversees 90 facilities across 20 countries. Earlier this year, the firm was also involved alongside BlackRock-owned Global Infrastructure Partners in a $33.4bn take-private deal for AES, and last year it acquired wastewater specialist Seven Seas Water Group, which manages data centre water usage.

The broader market remains active, with London Stock Exchange Group data showing a record $240bn of power sector deals agreed in the first half of the year, up 90 per cent from the same period last year. Carlyle has also been expanding its exposure to energy demand from data centres, including a $1.2bn purchase of oil and gas assets with Diversified Energy earlier this year, after selling gas producer Cogentrix for $3bn in 2024.

In our earlier article on AMD’s rally, we noted the stock climbed as investors priced in stronger demand for AI-capable processors and data center solutions ahead of upcoming earnings. We also highlighted that, despite broadly bullish technical signals and rising analyst targets, short-term volatility and competition risks could still challenge the sustainability of the move.

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