Private equity giant Apollo Global Management is teaming up with Canadian utility Capital Power to go hunting for US natural gas plants. (Bloomberg)
The duo plans to deploy up to $3B in equity to acquire gas-fired assets, with Apollo fronting 75% of the cash and Capital Power taking the operational lead (and a 25–50% stake). Capital Power says having Apollo’s backing lets them pounce on deals instantly rather than scrambling to find funding every time a plant is for sale
They’re specifically chasing assets that can feed the voracious appetite of US data centers. BloombergNEF forecasts gas demand from these facilities will skyrocket from 1.3B cu. ft. per day last year to 6.8B by 2035.