National Grid said Wednesday it will invest $1.75 billion in integrated power solutions company Joulent, securing a 35% stake, as the London-based utility moves to capitalize on growing energy demand from data centers.
The investment, made through National Grid’s commercial arm, National Grid Ventures, expands the company’s involvement in contracted power generation as a booming data center industry drives up energy demand, according to National Grid.
Joulent develops contracted power generation and high-voltage infrastructure for large-scale U.S. customers with substantial electricity needs, including data centers and artificial intelligence operations.
Alongside the investment announcement, Joulent unveiled Project Kilby, a facility planned to power a Microsoft-operated data center campus in West Texas under a 20-year agreement, the company said. The project is co-owned with Chevron, and operations are expected to begin in 2028.
National Grid said Joulent is forecast to be free cash flow positive from the early 2030s. National Grid said it will make a final investment decision on Project Kilby by the end of 2026.
National Grid said the $1.75 billion investment is not expected to affect its current five-year financial framework.