National Grid Buys 35% of Joulent for $1.75 Billion as AI Data Center Power Demand Surges
Updated
Updated · Financial Times · Jul 21
National Grid Buys 35% of Joulent for $1.75 Billion as AI Data Center Power Demand Surges
1 articles · Updated · Financial Times · Jul 21
Summary
$1.75 billion will buy National Grid a 35% stake in US developer Joulent, giving the UK utility direct exposure to fast-rising electricity demand from AI data centers.
The funding backs Joulent’s flagship west Texas project with Chevron, which aims to deliver 2.67GW of power to a Microsoft data center by 2028, with National Grid adding grid and large-infrastructure expertise.
The deal expands National Grid’s US push, where its New York and Massachusetts electricity and gas networks generated about £2.5 billion—roughly 45% of group operating profit—in the last fiscal year.
Joulent is pitching hybrid systems using gas turbines, renewables and batteries to bypass grid bottlenecks, as developers face years-long connection delays and long waits for gas generators.
AI facilities are straining power systems because thousands of chips draw electricity in synchronized bursts, pushing utilities and operators to seek more flexible loads and tools to smooth demand swings.
Is the AI boom's immense power demand forcing a long-term reliance on fossil fuels?
Will 'Bring Your Own Power' data centers boost local economies or become isolated, resource-draining islands?
National Grid Ventures Invests $1.75B in Joulent to Deliver 2.67 GW for AI Data Centers: The Future of “Across-the-Meter” Power
Overview
The rapid growth of AI infrastructure is transforming the energy sector, driving a surge in electricity demand that existing grids struggle to meet. To address this, National Grid Ventures has invested $1.75 billion for a 35% stake in Joulent LLC, highlighting the urgent need for reliable, large-scale power solutions. This strategic move reflects how major technology companies are becoming more involved in energy, while traditional energy players are entering the compute business. The partnership aims to deliver fast, scalable power for AI data centers and advanced industries, ensuring the energy landscape evolves to support the future of AI.