UK National Grid Bets $1.75 Billion on AI Infrastructure Boom
Britain's National Grid has invested $1.75 billion to secure a 35 percent stake in Joulent LLC, a firm developing a natural gas-fired power plant with Chevron in Texas to supply a Microsoft data center. The deal reflects surging demand for electricity driven by AI data centers and high-performance computing infrastructure [citation:1].
A $1.75 Billion Bet on AI's Energy Future
Britain's National Grid is making a bold move to capitalize on the exploding power demands of artificial intelligence.
The London-listed utility has invested $1.75 billion to acquire a 35 percent stake in Joulent LLC, a private firm developing a massive natural gas-fired power plant in Texas in partnership with Chevron.
The plant, known as Project Kilby, is being built specifically to supply a Microsoft data center and is expected to be operational by 2028.
The deal values Joulent at $5 billion and represents a strategic pivot for National Grid, which has traditionally focused on electricity and gas operations across the northeastern United States .
"There's just no doubt that the investments that are going into the tech sector, particularly around speed to power, are probably the largest growth market that you can find." – Zoe Yujnovich, CEO of National Grid
Access to electricity has become the biggest stumbling block to the AI boom. Years-long waiting times for permits and grid connections are forcing hyperscalers to seek creative solutions, including private power campuses that operate independently until they can connect to the broader grid.
National Grid's investment is a direct response to this bottleneck, offering a path to "speed to power" for AI infrastructure. Joulent, backed by activist investor Engine No. 1—which had previously targeted Exxon Mobil over climate change—has pivoted to focus squarely on the data center power market.The AI-driven power infrastructure boom is reshaping the utility industry globally.
The deal reflects a broader trend of energy companies seeking exposure to AI-driven demand. Spanish utility Iberdrola formed a joint venture with Echelon Data Centres in Ireland, while Germany's RWE and the UK's Drax Group are exploring repurposing former power sites for data centers.
Meanwhile, in Britain, National Grid is also developing domestic AI capabilities, including a shared AI system for electricity network monitoring and trials demonstrating how AI data centers can flex their power demand by up to 40 percent in response to grid signals.
National Grid CEO Zoe Yujnovich noted that this investment is just the beginning, with the company expecting to negotiate for potentially larger equity shares in future projects .
