DigitalBridge announced its acquisition of power infrastructure developer ArcLight Capital for $1.1 billion, underscoring a significant trend in North America where data center investors are increasingly buying power developers to meet rising electricity demands. With U.S. data center electricity needs projected to soar from 31 GW in 2025 to 66 GW in 2027, the integration of digital and power infrastructure is seen as essential for faster project development and efficient operations. This merger reflects a broader consolidation in the power sector, driven by mounting demand from data centers, which are pushing firms to ensure reliable power supplies through strategic acquisitions of energy assets.

Marc Ganzi: Marc Ganzi serves as CEO of DigitalBridge. He has pointed to AI as reshaping global power needs and advocated for firms that combine digital and energy infrastructure expertise. Ganzi commented directly on the ArcLight Capital acquisition announcement.
Sam Chandan: Sam Chandan is the Founding Director of the Chen Institute for Global Real Estate at NYU Stern School of Business. He described power access as a key constraint on digital infrastructure growth and explained how combined ownership can accelerate project timelines. Chandan discussed the ongoing convergence of the digital and power sectors.
DigitalBridge: DigitalBridge develops and operates infrastructure for AI, cloud computing, and telecoms. It is acquiring ArcLight Capital to integrate power generation with its data center operations amid a planned takeover by SoftBank. CEO Marc Ganzi has emphasized the need for equal expertise in digital and energy infrastructure.
Goldman Sachs: Goldman Sachs published a research note analyzing electricity demand growth tied to data centers. The note highlights supply challenges from rapid AI and computing expansion. It provides context on the broader power constraints affecting the sector.
Brian Boufarah: Brian Boufarah is the Energy, Resources, and Industrials M&A Practice Lead at Deloitte. He has observed that digital infrastructure owners are pursuing power assets to secure supply and control costs. Boufarah noted the role of such investments in supporting data center profitability.
NextEra Energy: NextEra Energy is a leading electric utility that has announced a major merger with Dominion Energy. The deal aims to create one of the largest utilities with significant capacity to serve data center loads. Its CEO has stressed the advantages of scale in operations and financing.
Dominion Energy: Dominion Energy is an electric utility whose territory includes a major concentration of data centers. It has agreed to merge with NextEra Energy to better support large-scale demand growth. The company is positioning for expanded generation and grid capabilities.
ArcLight Capital: ArcLight Capital develops and acquires gas-fired, solar, wind, and battery energy storage assets, focusing on late-stage projects. It is the target of an acquisition by DigitalBridge to address power supply needs for data centers. The firm has expanded through prior acquisitions in the power sector.

Industry Convergence: Ownership of both digital and power infrastructure is enabling faster project development by combining expertise in grid connections, permitting, and financing.
Sector Consolidation: Rising demand from data centers is accelerating mergers and acquisitions across the power sector as utilities and developers seek greater scale.
Power Demand Pressure: Rapid growth in AI and computing is driving data center operators to secure reliable power supplies through direct acquisitions of energy assets.