BlackRock-owned Global Infrastructure Partners is in advanced talks to acquire AES in a deal valued at $38B including debt—one of the largest utility takeovers ever. (FT)
AES runs plants in the US and 13 other countries and has poured billions into renewable projects and transmission that directly serve hyperscalers like Microsoft, Meta, and Alphabet.
The deal math: AES carries $29B in debt, and its market cap shrank to $9.4B after Trump-era rollbacks of renewable tax credits hit its stock. The acquisition would give GIP control of an enterprise worth over $38B.
The bigger trend: Private infrastructure funds are moving aggressively into utilities as the AI boom reshapes the grid. By buying AES, GIP could earn a pole position in data center growth, grid modernization, and the capital-intensive shift to carbon-free generation.