-Private equity firm Quantum (NASDAQ:QMCO) Capital Group will buy U.S. independent power producer Cogentrix Energy for about $3 billion from funds managed by the Carlyle Group (NASDAQ:CG), the companies said on Monday.
Utilities are attracting increased investor interest as technological innovations, including artificial intelligence and data centers, bolster power demand.
In May, investment firms Global Infrastructure Partners and CPP Investments agreed to take U.S. utility Allete (NYSE:ALE) private in a $6.2 billion deal.
Power use from the thousands of giant computing warehouses that comprise data centers is expected to triple globally to 46 terawatt-hours (TWh) this year from less than 15 TWh in 2023, according to Morgan Stanley research.
"We are at a critical juncture in the evolution of the domestic power market...Now more than ever, we need reliable and efficient power infrastructure," Wil VanLoh, founder and CEO of Quantum, said in a statement.
Cogentrix, which was bought by Carlyle from Goldman Sachs in 2012, consists of 5.3 gigawatts (GW) of natural gas-fired power plants, located throughout the Pennsylvania-New Jersey-Maryland (PJM), Texas, and New England regional transmission areas.
The deal is expected to close between the fourth quarter of 2024 and the first quarter of 2025, and Cogentrix will continue to be led by current CEO John Ragan and the existing management team.
Houston-based Quantum, which has managed more than $27 billion in equity commitments since its inception in 1998, provides equity, credit, and venture capital to the global energy industry.