June 22, 2026

DigitalBridge acquires ArcLight Capital for $1B amid rising power demand from data centers

On June 22, DigitalBridge announced its acquisition of power infrastructure developer ArcLight Capital for $1.1 billion, reflecting a significant trend among digital infrastructure investors to acquire power developers in response to surging electricity demand from U.S. data centers. According to Goldman Sachs, this demand is projected to rise from 31 GW in 2025 to 66 GW by 2027, prompting data center operators to seek reliable power supplies amidst delays in new power generation. DigitalBridge, which manages $119 billion in assets and operates Vantage Data Centers, aims to enhance its capabilities by integrating both digital and energy infrastructure, capitalizing on the growing convergence between these industries as companies navigate rising power prices and operational costs.

EQT AB: EQT AB is a Swedish private-equity firm involved in the consortium taking over AES Corporation. Its participation highlights the trend of asset managers broadening investments to cover power generation alongside digital infrastructure.
Calpine: Calpine is a power generation company acquired by Constellation Energy amid rising M&A activity in the power sector. The transaction reflects the trend of consolidation driven by digital infrastructure needs.
Blackstone: Blackstone is a major investor that acquired TXNM Energy as part of expanded infrastructure investing that now spans both power and digital assets. Its activity contributes to the surge in power sector deals linked to data center growth.
Marc Ganzi: Marc Ganzi is the CEO of DigitalBridge. He has stated that AI is rewiring the global power equation and emphasized the need for firms to underwrite both digital and energy infrastructure. He commented on the ArcLight acquisition in this context.
TXNM Energy: TXNM Energy is a power sector company acquired by Blackstone in the ongoing wave of industry consolidation. The deal exemplifies how private equity is broadening its focus to include power assets serving digital infrastructure.
John Ketchum: John Ketchum is the CEO of NextEra Energy. He has highlighted that scale enables more efficient buying, building, financing and operating of infrastructure, particularly in response to data center demand.
DigitalBridge: DigitalBridge develops and operates AI, cloud computing and telecoms infrastructure. It is acquiring ArcLight Capital as part of efforts to secure reliable power supplies for data center operations amid surging demand from AI and computing businesses. The company owns interests in Vantage Data Centers and is itself subject to a planned takeover by SoftBank.
Brian Boufarah: Brian Boufarah leads the Energy, Resources and Industrials M&A Practice at Deloitte. He has noted that rising power sector M&A is driven by increasing investments in digital infrastructure and that owners are seeking to secure power supply to manage costs and profitability.
NextEra Energy: NextEra Energy is a major electric utility advancing plans to merge with Dominion Energy to form one of the world’s largest utilities. It has expanded its generation pipeline specifically to serve large loads such as data centers. The company’s leadership has emphasized the importance of scale in buying, building and operating infrastructure efficiently.
AES Corporation: AES Corporation is a power company subject to a takeover by a consortium including Global Infrastructure Partners and EQT AB. The transaction is part of heightened M&A activity in the power sector fueled by data center demand.
ArcLight Capital: ArcLight develops and acquires gas-fired, solar, wind and battery energy storage assets with a focus on late-stage projects. It is being purchased by DigitalBridge to address the power infrastructure needs of data centers. The firm previously expanded its portfolio through acquisitions in the power sector.
Constellation Energy: Constellation Energy is a power sector company that acquired Calpine as part of the wave of consolidation in the industry. The move aligns with broader efforts by utilities and investors to respond to surging electricity demand from data centers.
Global Infrastructure Partners: Global Infrastructure Partners is an investor participating in the consortium acquiring AES Corporation. It is expanding its infrastructure portfolio to encompass both power and digital assets in response to market convergence.

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{
“M&A Driver”: “Rising power sector M&A activity is driven by increasing investments in digital infrastructure as developers seek to secure supply and manage costs.”,
“Strategic Advantage”: “Ownership of both power and data center development helps speed up deployment of new facilities by combining expertise in development, grid connections, and permitting with larger balance sheets.”,
“Industry Convergence”: “A lack of spare power generation capacity is driving continued convergence of the digital infrastructure and power infrastructure industries.”
}
`

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