National Grid Ventures Acquires 35% Stake in Joulent for $1.75 Billion to Power Microsoft’s 2GW Texas Data Center
July 3, 2026
National Grid Ventures Acquires 35% Stake in Joulent for $1.75 Billion to Power Microsoft’s 2GW Texas Data Center
The commercial arm of UK-based energy giant National Grid has made a major bet on the growing intersection of energy infrastructure and hyperscale data centers. National Grid Ventures (NGV) announced it has acquired a 35 percent stake in Joulent, a U.S. power infrastructure developer, for $1.75 billion. The investment is aimed at accelerating the development of large-scale, behind-the-meter power solutions for the data center industry, which is grappling with surging electricity demand driven by artificial intelligence and cloud computing.
Joulent, a portfolio company founded by Engine No. 1, is developing Project Kilby, a 2.67-gigawatt natural gas plant co-located with a planned 2GW Microsoft data center in West Texas. The facility is being developed in partnership with Chevron. According to NGV, the power plant will serve the Microsoft campus under a 20-year Power Purchase Agreement signed last month, with first power delivery expected in 2028. The project represents one of the largest known dedicated power plants for a single data center customer.
Joulent was formally launched in June and brings together co-located gas generation, battery storage, renewables integration, and a proprietary across-the-meter grid connection model. The company’s approach is designed to bring large-load customers online quickly without shifting infrastructure costs onto local ratepayers. Chris James, founder and CEO of Joulent, said: “This investment from National Grid Ventures strengthens Joulent's ability to deliver reliable, large-scale power on the timelines AI infrastructure and advanced industry now require.”
Beyond the capital infusion, NGV will contribute operational expertise in high-voltage networks, system integration, and project execution. The partnership is also expected to bolster National Grid’s data center connection program, through which the company plans to connect more than 10GW of demand across the UK and US over the next five years. Joulent claims to have a multi-gigawatt pipeline of future projects beyond Project Kilby, though it has not disclosed specific locations.
The deal underscores a broader trend in which energy companies and data center operators are forming strategic alliances to secure dedicated, reliable power for the next generation of computing infrastructure. As hyperscalers like Microsoft continue to expand capacity, the demand for co-located gas generation and hybrid energy solutions is expected to grow, reshaping how power is delivered to the digital economy.
Source: datacenterdynamics
