ADQ and ECP earmark USD 25 bn for powering US data centers: Abu Dhabi sovereign wealth fund ADQ entered into an agreement with American energy-focused investment firm Energy Capital Partners (ECP) to invest USD 25 bn in powering data centers, according to an ADQ press release. The US is set to see the lion’s share of investment, but the pair did not rule out investing in other markets.

The details: The 50-50 partnership will see the companies invest at least USD 25 bn across 25 GW worth of projects and launch infrastructure projects to generate electricity to power data centers, hyperscale cloud companies, and other industries. The projects will include greenfield developments, new builds, and expansion work, and focus on natural gas-powered plants but would consider lower carbon emission options, ADQ deputy group CFO Hamad Al Hammadi told Bloomberg.

More to come? Funding will come in a USD 5 bn initial capital contribution, with the rest following over five years, Al Hammadi told Bloomberg, adding that further investment was in the cards. A mix of debt and equity would finance the venture, which is aiming to begin dealmaking for projects within a year of starting up, Al Hammadi said.

Not UAE’s first move on US data centers: Earlier in January, Dubai-based Damac Properties committed USD 20 bn of investments in data centers across the US. The first phase of the investment commitment is eying 2 GW of capacity, covering Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana.

REMEMBER- The development follows National Security Advisor and ADQ Chairman Tahnoon bin Zayed Al Nahyan’s meeting with US President Donald Trump to discuss expanding bilateral ties on AI and tech.

IN OTHER RELATED UPDATES-

Musk’s xAI + Nvidia join the UAE-backed AI Infrastructure Partnership: Elon Musk’s xAI and chipmaker Nvidia have joined BlackRock, Microsoft, and Abu Dhabi’s MGX’s USD 30 bn AI Infrastructure Partnership, according to a statement. The group — which was launched last September formerly as the Global AI Infrastructure Investment Partnership — aims to invest in data centers and energy projects, primarily in the US and allied countries, while targeting an additional USD 70 bn in debt financing.

MGX — a Mubadala-backed AI fund — has been laying the ground for major AI and data center investments overseas, reportedly pledging USD 30-50 bn investments in France and announcing plans to develop 1 GW blue data centers in Italy in partnership with Italy’s Eni and UAE’s G42.

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