National Grid invests in power generation for Microsoft amid U.S. data center boom

National Grid will invest $1.75 billion for a 35% stake in Joulent, gaining exposure to U.S. contracted generation and high-voltage infrastructure demand tied to data centers, including a Texas project for Microsoft.

Summary

National Grid has agreed to invest $1.75 billion for a 35% stake in Joulent LLC, valuing the U.S. integrated power solutions company at $5 billion. The deal expands the U.K. utility's U.S. footprint beyond its traditional Northeast presence and gives it exposure to rising electricity demand from data centers and other large customers through contracted power generation and high-voltage infrastructure. Joulent is also working with Chevron in Texas on a natural gas power plant for Microsoft, highlighting how surging power needs from large-scale computing are reshaping investment in generation assets.

Terms & Concepts
  • contracted power generation: Electricity supply developed under long-term customer agreements.
  • high-voltage infrastructure: Transmission equipment that moves large amounts of power.
  • data centers: Facilities that house computing and storage systems and require large amounts of electricity.