EIG and Acwa have agreed to establish Plenum Power, a new partnership with an initial equity commitment of approximately $4bn aimed at investment opportunities in the US power sector.

The partnership combines EIG’s experience in energy infrastructure investment and financing with Acwa’s background in developing, constructing, and operating large-scale conventional and renewable power projects.

Plenum Power will target projects expected to arise from increasing electricity demand in the US, particularly due to electrification trends and the growth of AI data centres.

EIG has previously committed over $14.2bn globally across power generation, renewable energy, and related energy transition infrastructure.

The firm described the partnership as an extension of its strategy in the US, drawing on its track record in building and scaling energy businesses.

EIG CEO R. Blair Thomas said: “The US power industry is at an inflection point, with demand accelerating as AI, data centres and electrification reshape the market.

“At the same time, recent dislocation in renewable energy development caused by regulatory changes, supply chain inflation and interest rates in the US creates an attractive entry point for a new entrant at scale in our view.”

Acwa, which manages 111 assets across 16 countries and oversees $127bn in assets under management, sees the US partnership as a chance to expand its footprint in a major power market.

The Saudi-listed company has a background in delivering infrastructure projects in the Middle East, Asia, and other global markets.

EIG and Acwa have an established working relationship based on prior joint projects in the Middle East.

Through Plenum Power, the partners plan to explore acquisitions, develop new capacity, and invest in both new and existing infrastructure in the US power sector.

The companies indicated that current trends in electrification and technological growth, such as the increased energy needs of AI data centres, will require new generation assets and upgrades to existing infrastructure.

Acwa CEO Samir Serhan said: “The US represents a significant opportunity for Acwa to bring its global expertise in developing, financing, and operating large-scale power infrastructure to one of the world’s most dynamic energy markets.

“As electricity demand accelerates, meeting that growth is expected to require substantial investment, reliable generation capacity, and the ability to deliver projects efficiently and at scale.”

Plenum Power aims to leverage EIG’s and Acwa’s combined operational, development, and financial capabilities as it assesses a range of opportunities in the US.