In a sign of how deeply AI is reshaping energy markets, Britain's National Grid announced Wednesday it will invest $1.75 billion for a 35% stake in Joulent, a U.S. energy platform developing power infrastructure purpose-built for data centers.
The deal will fund Joulent's first major project — a 2.67-gigawatt gas-fired facility in West Texas developed in a 50/50 partnership with oil giant Chevron. The facility will supply a Microsoft-operated data center campus under a 20-year power purchase agreement.
Known as the "Kilby" project, the facility has already secured critical equipment including GE Vernova turbines and reserved engineering and construction capacity, targeting power delivery by 2028.
"This investment reflects the accelerating demand for electricity driven by generative AI," a National Grid spokesperson said. J.P. Morgan analysts noted they expect returns from the venture to exceed the 9-10% return on equity that regulated networks typically achieve.
AI-related electricity demand rose 17% in 2025 alone, far outpacing the 3% growth in overall global electricity demand. National Grid said the strategic partnership would also strengthen its existing data center connection program, where it expects to connect more than 10 gigawatts across the UK and US over the next five years.
Joulent is expected to become free cash flow positive from the early 2030s, with a final investment decision on the stake expected by the end of 2026.
