KKR and Energy Capital Partners (ECP) have committed to investing $50 billion to meet the rapidly growing needs of artificial intelligence (AI) and cloud computing. This strategic partnership, announced Wednesday, aims to enhance power generation, transmission and data center capabilities.
KKR (Kohlberg Kravis Roberts & Co) is a global investment firm known for its expertise in alternative asset management. In recent years, KKR has expanded into digital infrastructure, holding stakes in more than 100 data centers worldwide and investing more than $29 billion in digital and fiber assets. ECP, founded in 2005, is a leading US-based investor specializing in energy transition infrastructure, known for investing in power generation, renewable energy and sustainability.
ECP will finance this initiative from existing and future capital pools, while KKR will draw from its infrastructure and real estate strategies. The companies will work with industry leaders, including utilities and independent power producers.
Data center energy demand is expected to grow 160% by 2030, driven largely by the energy-intensive nature of training, inferencing and fine-tuning AI models. This trend is in line with similar investments by tech giants like Microsoft and Google, which are increasingly investing in renewable energy to support their data-intensive operations and reduce emissions. Last month, BlackRock launched a $30 billion AI infrastructure fund.
“Data center energy demand will remain unmet without the right infrastructure, which is critical to increasing productivity, supporting electrification and helping countries create a competitive advantage in artificial intelligence,” said Joe Bae, co-administrator KKR delegate.