BlackRock's GIP Nears $38 Billion Utility Giant AES Acquisition
BlackRock-owned Global Infrastructure Partners (GIP) is nearing a huge buyout of AES, a major utility focused on power for tech data centers and renewable energy grids.
- A Historic Deal: BlackRock-owned Global Infrastructure Partners (GIP) is close to striking a $38 billion deal to acquire the utility group AES. If successful, this would rank as one of the largest infrastructure takeovers ever completed.
- The Companies Involved:
- GIP is a pioneer in specialized infrastructure takeovers. BlackRock purchased GIP last year for $12.5 billion, and GIP now manages nearly $200 billion in assets globally. GIP holds stakes in significant infrastructure assets like London’s Gatwick airport.
- AES is a major publicly traded utility in the US that operates power plants across the country and in 13 other nations.
- Focus on Future Power: AES has made significant investments in renewable energy grids. These grids are critical for supplying power to massive data centers used by major technology companies, including Microsoft, Meta, and Alphabet.
- AI Driving Demand: The energy required for Artificial Intelligence (AI) is increasing power demand, which is making infrastructure funds highly interested in increasing data center capacity.
- Financial Details: The $38 billion valuation of AES includes its large debts. AES carries $29 billion in debt.
- Investor Concerns: In the past year, shares in AES traded down more than 30%. Investors cooled on the company because of its focus on renewable energy, particularly after US President Donald Trump withdrew green energy tax credits.