GIP Nears $38 Billion Acquisition of AES Amid Surging Demand

BlackRock's Global Infrastructure Partners (GIP) is progressing toward a $38 billion deal to acquire utility group AES. Driven by rising power demand from AI and data centers, utilities are attracting significant investment attention. Talks are advanced but not finalized, with AES's renewable growth adding to its appeal.

BlackRock-backed Global Infrastructure Partners is reportedly close to securing a $38 billion deal, including debt, for the acquisition of utility giant AES, per a Financial Times report. This move comes amidst a spike in power demand driven by artificial intelligence and the increasing prevalence of data centers.

According to insiders, talks between GIP and AES, headquartered in Virginia, have reached an advanced phase, but there's still a possibility the deal may collapse. Notably, both involved parties, GIP and AES, have refrained from commenting on the ongoing negotiations.

Rising interest in AES primarily stems from significant growth within its renewables sector, a key factor as the global economy pivots to cleaner energy sources. This trend is expected to push U.S. electricity consumption to unprecedented levels. Earlier in July, AES's shares saw a substantial rise following rumors of potential strategic moves.