Private Equity Bets on Utilities as AI Strains the Grid

Private equity firms are racing to buy or finance utility assets as AI-driven demand from hyperscale data centers spurs a wave of energy infrastructure investment. Utilities are selling non-core assets to raise cash, while policymakers warn a 'shadow grid' built by tech giants could bypass traditional oversight and slow grid modernization. High-profile projects—Amazon’s Texas gas plant and Nvidia’s alliance with SoftBank and the U.S. government to power an OpenAI project in Ohio—illustrate the trend, though experts caution most cost pressures come from transmission and distribution rather than supply, and argue private capital should back upgrades to the aging grid rather than create parallel networks.