UAE and U.S. Join Forces in a $25 Billion Digital Energy Deal

In an era where digital speed defines global progress, power is no longer just about fuel it’s about data. And powering data means powering the future. That’s the vision behind one of the most striking FDI announcements this March.

On 19 March 2025, it was revealed via Axios that ADQ, one of Abu Dhabi’s sovereign wealth funds, and Energy Capital Partners (ECP), a U.S.-based private equity firm specialising in energy and infrastructure, have entered into a strategic joint venture. Their mission: to invest over $25 billion into powering data centres and industrial users across the United States.

This is not merely an investment. It is a strategic handshake across continents, rooted in urgency, innovation, and a deep understanding of where the world is headed.

Two Investors with one ambition

ADQ, headquartered in Abu Dhabi, is one of the UAE’s leading sovereign investment vehicles. While younger than its counterparts like Mubadala or ADIA, ADQ has swiftly built a reputation for agility and sectoral depth, particularly in logistics, energy, and digital infrastructure. Energy Capital Partners (ECP), based in New Jersey, manages billions in assets with a specific focus on energy transition, renewables, and infrastructure assets. ECP has been a quiet but consistent force behind North America’s decarbonisation and infrastructure resilience. Together, these two partners form a transatlantic powerhouse—combining capital strength, sectoral know-how, and a long-term mindset.

Energy for the Cloud Era

The joint venture plans to deploy more than 25 gigawatts of power generation capacity over the coming decade. This capacity will support data centres and industrial consumers across the U.S., sectors under immense strain as artificial intelligence, cloud computing, and industrial automation push power demands into overdrive.

The first wave of projects is expected to come online in approximately three years, focusing on high-efficiency, low-carbon power sources.

While no exact job numbers have been published, projects of this magnitude typically support tens of thousands of jobs in construction, operations, grid management, and support services. Importantly, the investments will also revitalise infrastructure in several U.S. regions, often in states that need both new jobs and modern power capacity.

A Strategic Response to a Silent Crisis

At the heart of this investment lies a truth that’s easy to miss: data centres are energy-hungry, and existing U.S. infrastructure is not ready to meet this demand alone.

The United States is facing a looming energy bottleneck. Data centre development is booming driven by AI, streaming, e-commerce, and cloud computing but the grid capacity to support them is limited and unevenly distributed.

ADQ and ECP are not only seizing an opportunity they’re stepping into a vacuum. This initiative is a future-proofing strategy: build the energy before the demand explodes.

Breaking down what each party brings to the table: 

• ADQ brings more than capital. It brings a strategic government mandate to position Abu Dhabi as a global investor in the industries of tomorrow, whether that’s biotech, clean energy, or digital infrastructure. This deal strengthens the UAE’s diplomatic and economic ties with the U.S. and boosts its reputation as a forward-looking investor in sustainability and innovation.

• ECP, in turn, offers local expertise, and deep knowledge of the U.S. regulatory landscape, grid infrastructure, and project finance mechanics. Their track record in managing complex energy assets gives this venture operational credibility and scale.

This partnership is a model of complementarity—one side brings global capital and ambition; the other brings local precision and execution strength.

More Than Just Dollars

For the U.S., this is more than a financial injection, it’s a commitment to build out the backbone of the digital economy, ensuring that innovation doesn’t outpace infrastructure. For the UAE, this is an opportunity to be at the centre of the AI era, by investing not only in technology companies but in the power that keeps those technologies alive. At a time when geopolitics and trade are often divisive, this deal shows how quiet diplomacy and strategic alignment can deliver transformative results.

The Bigger Picture: Human Lives and Global Connectivity

Behind the billions are stories of young engineers designing the future of power, communities that will benefit from new energy infrastructure, and tech firms that can grow without constraint. It’s about keeping the world’s information flowing, safely and sustainably. It’s about ensuring that the children of tomorrow have access to smarter education platforms, medical data systems, and climate-monitoring tools—all of which run on data, all of which need power.

This $25 billion vision is more than a business deal. It’s a commitment to build a digital world with reliable foundations resilient, inclusive, and global.