National Grid Ventures invests $1.75B in Joulent for US data center power, securing 2.67GW Microsoft PPA
NGG sits 21% above its 52-week low of $67.515.
Summary
National Grid Ventures is investing $1.75 billion for a 35% stake in Joulent, a platform developing integrated power solutions for large US data centers, including a 2.67 GW project with Microsoft and Chevron.
Key Events · M&A and Partnerships · NGG
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Strategic Investment in Joulent
National Grid Ventures (NGV) will invest $1.75 billion to acquire a 35% interest in Joulent LLC, a platform focused on developing integrated power solutions for US large load customers, such as data centers.
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Partnership for US Data Center Power
The investment is part of a broader strategic partnership aimed at meeting the rapidly rising demand for reliable, scaled power for AI infrastructure and advanced industries in the US.
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Foundational Project with Microsoft and Chevron
NGV's investment will enable Project Kilby, a 2.67 GW co-located power facility in West Texas, developed in a 50/50 partnership with Chevron Corporation, to provide dedicated electricity to a Microsoft-operated data center campus under a 20-year power purchase agreement.
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Funding and Financial Impact
The investment is incremental to National Grid's existing £70 billion five-year capital investment program and will be funded through existing balance sheet headroom, without affecting the Group's current five-year financial framework. Joulent is expected to be free cash flow positive from the early 2030s.
Analysis · NGG · Energy & Transportation
This filing details a major strategic investment by National Grid Ventures into the rapidly growing US large load power market, specifically targeting data centers. The $1.75 billion investment, representing a significant portion of the company's market capitalization, secures a 35% stake in Joulent and enables a foundational 2.67 GW project in West Texas with Chevron, backed by a 20-year power purchase agreement with Microsoft. This move diversifies National Grid's asset base, leverages its infrastructure expertise, and positions it to capture long-term growth from AI-driven power demand, funded without impacting its existing financial framework.
At the time of this filing, NGG was trading at $81.61 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $82.7B. The 52-week trading range was $67.52 to $94.64. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.