Zinger Key Points
- KKR and ECP form a $50B partnership to boost AI, cloud-focused data centers and power infrastructure.
- U.S. data center demand could triple by 2030, driving over $1T in potential investments.
- Get Monthly Picks of Market's Fastest Movers
KKR & Co. Inc. KKR and Energy Capital Partners disclosed a strategic partnership worth $50 billion to drive development in data centers, power generation, and transmission infrastructure to support AI and cloud computing growth worldwide.
This collaboration leverages KKR’s digital infrastructure and energy expertise with ECP’s platform in electrification, power, and renewable energy.
The strategic alliance seeks to deliver large-scale data center and power solutions tailored for hyperscalers and other market participants, meeting their infrastructure requirements across different regions to enable extensive model training, tuning, and inferencing.
KKR and ECP intend to work alongside industry leaders, such as utilities, power and data center developers, and independent power producers, to accelerate the development of the data center campuses essential for hyperscalers.
Notably, U.S. data center demand is expected to nearly triple by 2030, potentially fueling over $1 trillion in investments. A typical planned data center campus can exceed 1 gigawatt (GW) in power demand, requiring upwards of $15 billion in data center and power infrastructure investments.
Joe Bae, Co-Chief Executive Officer, KKR said, “Data center power demand is expected to grow by 160% by 2030, a demand that will go unmet without the right infrastructure in place, which is critical to boosting productivity, supporting electrification and helping countries create a competitive edge in AI.”
Waldemar Szlezak, Partner and Global Head of Digital Infrastructure, KKR, stated, “With our combined footprint and capabilities, we have a more than 8 GW existing datacenter pipeline, 100 GW of currently operating and development-ready power generation, and significant experience working with stakeholders across both industries to help realize this opportunity quickly and responsibly.”
This week, KKR and Capital Group submitted registration statements to the SEC for two public-private fixed-income funds: Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+.
Both funds are anticipated to launch in the U.S. during the first half of 2025, pending regulatory approval.
Investors can gain exposure to KKR via FM Focus Equity ETF FMCX and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO.
Price Action: KKR shares are up 1.35% at $141.21 at the last check Wednesday.
Photo courtesy: Pixabay
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