National Grid enters the data center generation market with a 35% stake in Joulent
National Grid Joulent are leading a $1.75 billion investment to develop energy infrastructure for artificial intelligence data centers in the United States. It will invest $1.75 billion to acquire a 35% stake in Joulent, a U.S. energy platform that develops electricity generation infrastructure for artificial intelligence data centers.
The deal positions National Grid in one of the fastest-growing segments of the global energy market: supplying electricity to the computing infrastructure that supports language models, computer vision systems, and other AI applications with high computational demand.
The Kilby project: 2.7 GW in Texas with GE Vernova turbines
The core asset of the transaction is the Kilby project, an electricity generation development located mainly in Texas that aims to add approximately 2.7 gigawatts of new capacity. The project already has critical equipment secured, including GE Vernova turbines, and has engineering and construction capacity reserved. The target start date for supply is 2028.
The choice of Texas is no coincidence. The state accounts for a significant share of new AI data centers in the United States, driven by its independent power grid, land availability, and a regulatory framework favorable to industrial expansion. Electricity demand in that region has risen steadily over the past three years.
National Grid Joulent bet on private generation
The acquisition reflects a strategic shift by National Grid toward private electricity generation aimed at high-demand customers, a model different from the regulated transmission business that has historically been its core. Technology companies, under pressure to secure reliable, long-term power supply for their AI facilities, have become direct buyers of generation capacity.
Joulent describes its offering as a customized energy management stack that integrates generation sources and grid interconnection to deliver reliable power at industrial scale. The platform aims to bridge the gap between the deployment speed demanded by data center operators and the typical timelines of conventional energy infrastructure.
The race for firm gigawatts for AI intensifies
National Grid’s investment comes at a time when major technology operators—including Microsoft, Amazon, and Google—have signed long-term power purchase agreements and, in some cases, are directly financing generation assets. Competition to secure gigawatts of firm capacity has intensified since 2024, and projects with equipment already reserved have an advantage over those still in the interconnection queue.
For National Grid, entering the generation market for artificial intelligence data centers means taking on a different risk profile than its regulated assets in the United Kingdom and the northeastern United States. However, long-term supply contracts with data center operators offer revenue visibility comparable to that of a regulated asset.
The Kilby project, with its projected 2.7 GW of capacity, would represent a meaningful share of the electric capacity Texas will need to add in the coming years to absorb growth in industrial and technology demand without compromising system reliability. The transaction still must go through the usual closing processes, but National Grid has already indicated that the investment fits within its long-term capital allocation plan.
Sources: Reuters · National Grid · Joulent
