The new year has kicked off with a number of transactions and investments pointing to a common theme that could set the stage for 2025: demand for power and energy generation. Propelled by megatrends such as the energy transition and digitalization, energy and power are perhaps some of the hottest commodities right now, and infrastructure investment professionals are leaping to take ownership of the assets that support them.
As one example, in January, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) announced plans to invest $500 million in AlphaGen, a power infrastructure portfolio owned by affiliates of ArcLight Capital Partners. The portfolio is one of the largest independent power portfolios in the United States, with more than 11 gigawatts of critical power assets located in strategic markets across the country.
In their announcement, ADIA and ArcLight explained the converging investment megatrends of artificial intelligence (AI)–driven da