Carlyle agrees to sell Copia Power to EQT for $2.6 billion

In short: Carlyle is set to sell Copia Power, a company that builds power and infrastructure for data centers, to EQT in a deal valuing it at $2.6 billion.

What happened

Carlyle, a private equity firm (a company that buys and sells businesses), is preparing to sell Copia Power to EQT, according to the Financial Times. People familiar with the deal said it could be announced as soon as Thursday, and it values Copia’s equity at $2.6 billion.

Copia was created by Carlyle’s infrastructure group in 2021. It develops data center campuses in the south western US by buying large areas of land and linking them to power sources, including renewable energy like solar, plus batteries and other generation. Copia has 2.6 gigawatts of power generation and storage assets operating or being built, and more projects in development.

The Financial Times reported that, at this price, Carlyle would make more than five times its initial investment. Carlyle and EQT declined to comment on the financial details.

Why it matters

AI uses a lot of computing power, and that means data centers need a lot of electricity. This is making electricity supply a bigger part of the race to build AI services, similar to how a new supermarket needs reliable roads and power before it can open. Consultancy ICF expects US electricity demand to rise 21 percent by 2030, and deals like this show investors are trying to own the “picks and shovels” that keep data centers running.

Source: Financial Times