BlackRock’s GIP nears $38bn takeover of utility AES
Global Infrastructure Partners in talks to acquire energy group that supplies power to data centres
BlackRock-owned Global Infrastructure Partners is nearing a $38bn deal to buy utility group AES in what would be one of the largest infrastructure takeovers of all time, said people briefed on the matter.
GIP, a pioneer of specialised infrastructure takeovers, is poised to acquire AES within the coming days, the people said. GIP owns stakes in London’s Gatwick airport and large pipeline networks in the US and Middle East.
The deal will value AES at around $38bn including its large debts, said two people briefed on the matter. They added that talks were at an advanced stage, but could still fail to yield a deal.
GIP declined to comment. AES did not immediately respond to requests seeking comment.
AES, one of the largest publicly traded utilities in the US, owns and operates power plants across the country and in 13 other nations.
It has invested heavily in recent years in renewable energy grids, which play a crucial role in supplying power to data centres owned by technology giants such as Microsoft, Meta and Alphabet.
Shares in AES have traded down more than 30 per cent over the past year. Investors have cooled on the company because of its focus on renewable energy as US President Donald Trump has withdrawn green energy tax credits.
AES carries $29bn in debt, including more than $5bn at its parent company. Its market capitalisation stands at $9.4bn, implying an enterprise value of more than $38bn.
As the energy needed for artificial intelligence fuels an uptick in power demand, large infrastructure funds have seized on the need for more data centre capacity. Companies such as Meta and Oracle are also working on their own debt-financed data centre projects.
BlackRock acquired GIP last year for $12.5bn and now manages nearly $200bn in assets worldwide, making it one of the largest specialised infrastructure investment groups globally.
GIP has a history with the utility sector. Last year, it struck a $6.2bn deal to take public utility company Allete private.
Bloomberg in July reported AES was considering a sale after fielding takeover interest from the likes of GIP and Brookfield.