National Grid bets $1.75B on Joulent to ride US AI power demand
What's the deal? National GridDealroom has a profile for this one. Try Dealroom → is investing $1.75 billion in US energy developer JoulentDealroom has a profile for this one. Try Dealroom →, acquiring a 35% equity stake through its investment arm. The move deepens the UK utility's push into the fast-growing US market for powering AI data centres.
What's the endgame? The funding supports Joulent's flagship project with ChevronDealroom has a profile for this one. Try Dealroom → in west Texas, which aims to supply 2.67GW of electricity to a Microsoft data centre by 2028. National Grid will contribute equipment and expertise in large-scale infrastructure and grid operations.
Joulent, a 2026 spinout from activist fund Engine No. 1Dealroom has a profile for this one. Try Dealroom →, develops systems combining gas turbines, renewable generation, and battery storage. It says partnerships with energy groups give it access to long-lead equipment and supply chains, helping deliver power faster.
Why now? Chief executive Zoë Yujnovich said the deal gives National Grid exposure to a major source of electricity demand growth while diversifying its regional US footprint. That footprint already includes distribution businesses in New York and Massachusetts, which generated about £2.5 billion — roughly 45% of group operating profit — in the fiscal year ending March 2026.
What could go wrong? Developers face long delays securing grid connections as renewable investment crowds transmission networks and permitting stretches on for years. Facilities housing thousands of advanced chips also cause sharper swings in electricity use than conventional cloud sites, straining networks.
Noelle Walsh, president of Microsoft's cloud operations, said AI data centres increasingly require closer coordination between energy and infrastructure. National Grid's expertise in electricity networks, she added, will help deliver the project.
The signal: AI's power appetite is reshaping infrastructure investment, driving interest in off-grid and hybrid systems that can be deployed faster than traditional transmission. Utilities like National Grid — which has also announced collaborations with Nvidia — are positioning themselves at the centre of that buildout.
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