## KKR and Energy Capital Partners Join Forces for $50 Billion Data Center and Power Infrastructure Push
In a move that underscores the booming demand for data centers and power infrastructure, KKR & Co. Inc. (KKR) and Energy Capital Partners (ECP) have forged a strategic partnership worth a staggering $50 billion. This collaboration aims to address the rapidly growing needs of AI and cloud computing, which are driving unprecedented demand for data center and power infrastructure worldwide.
This strategic alliance leverages KKR’s renowned expertise in digital infrastructure and energy, combined with ECP’s platform in electrification, power, and renewable energy. The combined forces aim to deliver large-scale data center and power solutions meticulously tailored to the unique requirements of hyperscalers and other significant market players. The partnership’s ambition is to meet the infrastructure demands of these technology giants across diverse geographic regions, enabling them to support extensive model training, tuning, and inferencing.
KKR and ECP are strategically positioning themselves to become key players in the rapidly expanding data center ecosystem. They intend to collaborate with leading industry players, including utilities, power and data center developers, and independent power producers. This collaborative approach is vital for accelerating the development of essential data center campuses, which are critical for the continued success of hyperscalers.
The urgency of this partnership is evident in the projected data center demand in the United States. By 2030, the demand for data centers is expected to nearly triple, potentially igniting over $1 trillion in investments. A typical planned data center campus can exceed 1 gigawatt (GW) in power demand, necessitating substantial investments of upwards of $15 billion in both data center and power infrastructure.
Addressing the Growing Demand
Joe Bae, Co-Chief Executive Officer of KKR, emphasizes the critical nature of this partnership, stating, “Data center power demand is expected to grow by 160% by 2030, a demand that will go unmet without the right infrastructure in place. This is essential for boosting productivity, supporting electrification and helping countries create a competitive edge in AI.”
Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR, adds, “With our combined footprint and capabilities, we have a more than 8 GW existing datacenter pipeline, 100 GW of currently operating and development-ready power generation, and significant experience working with stakeholders across both industries to help realize this opportunity quickly and responsibly.”
KKR’s Continued Expansion
KKR’s commitment to this sector goes beyond this partnership. This week, KKR and Capital Group submitted registration statements to the SEC for two public-private fixed-income funds: Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. Both funds are expected to launch in the United States during the first half of 2025, pending regulatory approval. These funds offer investors a unique opportunity to gain exposure to KKR’s growing presence in the data center and power infrastructure space.
Investors can access KKR through various avenues, including the FM Focus Equity ETF (FMCX) and the EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (LBO).
The announcement of this partnership and KKR’s continued expansion into data centers and power infrastructure signifies the vital role these sectors play in the global technological landscape. With a focus on sustainability and collaborative efforts, KKR and ECP are well-positioned to shape the future of data center and power infrastructure, propelling the growth of AI and cloud computing for years to come.
