By Adam Whittaker
The U.K.'s National Grid agreed to invest $1.75 billion in U.S. integrated power solutions company Joulent as it seeks to capitalize on the country's rapidly growing energy needs.
In return, National Grid will get a 35% stake in Joulent, which is developing contracted power generation and high-voltage infrastructure for U.S. customers that require substantial amounts of power.
The deal was made through the grid operator's commercial arm, which develops and builds energy infrastructure. It expands National Grid's presence in the U.S. where a booming data center industry is driving up energy demand.
National Grid's investment enables the development of Joulent's foundational project, Project Kilby, which will power a Microsoft-operated data center campus in West Texas under a 20-year agreement. The project is co-owned with oil major Chevron and should begin operations in 2028.
National Grid said Joulent is forecast to be free cash flow positive from the early 2030s. It said it will make the final investment decision by the end of 2026 and said the $1.75 billion in spending isn't expected to affect its current five-year financial framework.
Write to Adam Whittaker at adam.whittaker@wsj.com