US EditionPrivate equity sees profits in power utilities as electric bills rise and Big Tech seeks more energy
Private equity firms target utilities for steady regulated returns amid rising electricity bills and surging demand from Big Tech data centers, with $6.2 billion Minnesota deal pending approval.
- In recent weeks, a BlackRock subsidiary and the Canada Pension Plan Investment Board proposed a $6.2 billion buyout of Allete, parent of Minnesota Power, with Allete saying the $67 a share deal at a 19% premium won't change operations or rates.
- Billions of dollars are moving toward utilities serving more than 150 million customers as private investment firms financing AI and data centers target local power providers.
- Ahead of an Oct. 3 vote, commission staff and the judge flagged concerns as administrative law judge Megan J. McKenzie recommended rejecting the Minnesota Power buyout over private equity profit motives.
- Building trades unions and Gov. Tim Walz support Allete and BlackRock, while the state attorney general's office and major industrial customers oppose the deal amid $4.3 billion upgrade plans tied to Minnesota's 100% carbon-free by 2040 law.
- Utilities typically deliver around 10% returns via regulator-allowed upcharges on capital investments, attracting private equity investors seeking about 10% returns in electric utilities, while Larry Fink called infrastructure `at the beginning of a golden age`.
57 Articles
57 Articles
Regulators weigh billion-dollar utility takeovers as bills rise for consumers
Private investment firms that are helping finance Americas artificial intelligence race and the huge buildout of energy-hungry data centers are getting interested in the local utilities that deliver electricity to regular customers and the servers that power AI.Billions of dollars from such firms are now flowing toward electric utilities in places including New Mexico, Texas, Wisconsin and Minnesota that deliver power to more than 150 million cu…
Associated Press News
Private equity sees profits in power utilities as electric bills rise and Big Tech seeks more energy
Private investment firms that are helping finance America’s artificial intelligence race and the huge buildout of energy-hungry data centers are getting interested in the local utilities that deliver electricity to regular customers — and the servers that power AI.
Private equity sees profits in power utilities as electric bills rise and Big Tech seeks more energy - KFIZ News-Talk 1450 AM
Private investment firms that are helping finance America’s artificial intelligence race and the huge buildout of energy-hungry data centers are getting interested in the local utilities that deliver electricity to regular customers — and the servers that power AI. Billions of dollars from such firms are now flowing toward electric utilities in places including New Mexico, Texas, Wisconsin and Minnesota that deliver power to more than 150 millio…
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