ACWA Power EIG partnership targets $4bn US power platform

The ACWA Power EIG partnership, named Plenum Power, will target an initial equity commitment of approximately $4 billion for power generation and storage investments in the US, the two firms announced on Thursday.

Saudi developer ACWA Power, trading as Acwa, will own 49% of the venture while US-based EIG owns the remaining 51%, according to Acwa’s filing to the Saudi Exchange. The deal was struck on 28 October through a subsidiary. The agreement is described as a long-term strategic partnership of indefinite duration.

Plenum Power will consider acquisitions, new generation build-out, energy storage and investments in existing US power infrastructure, the companies said in a statement. Capital will be provided under agreed governance frameworks and investment criteria, with each transaction subject to separate approval.

Why Acwa is looking to the US

The partners said rising US electricity demand, driven by electrification and the rapid build-out of AI data centres, will require substantial investment in new capacity and in existing assets. R. Blair Thomas, chief executive of EIG, said: “The U.S. power industry is at an inflection point.”

Thomas said recent disruption in US renewable energy development, caused by regulatory changes, supply chain inflation and interest rates, had created an attractive entry point for a new entrant at scale, and he expected consolidation across the industry. Dr Samir J. Serhan, chief executive of Acwa, said the United States “represents a significant opportunity for Acwa”.

Andrew Ellenbogen, president of EIG, said the two sides aimed to “create a scaled U.S. power platform that can grow through acquisitions” and new capacity development. He said the approach builds on a platform-creation model that EIG has applied to oil and gas, LNG and battery storage ventures.

Scale of the ACWA Power EIG partnership

Acwa, whose biggest shareholder is sovereign wealth fund the Public Investment Fund and which is traded on Tadawul under the ticker 2082, had 111 assets in 16 countries and SAR475 billion ($127 billion) in assets under management as of July 2026. Its portfolio includes 98.2GW of generation capacity, of which 52.3GW is renewables, as well as 9.7 million cubic metres a day of desalination capacity, it said in the statement.

As of 30 June 2026, EIG oversaw $27.1 billion in assets. Since its founding 44 years ago, EIG has committed more than $55 billion to energy across 429 companies and projects in 44 countries. Over $14.2 billion has been committed to power generation, renewables, storage and related energy transition infrastructure.

The two firms have already worked together on previous projects in the Middle East, the statement said. EIG is also recognised in the region for leading the consortium that purchased a 49% stake in Aramco Oil Pipelines Company as part of a $12.4 billion transaction finalised in 2021.

What it means for Gulf investors

The Saudi energy investment follows a trend of Gulf money flowing into US energy and infrastructure as demand for power driven by AI begins to outstrip supply, a theme also seen in Oman’s $3 billion AI data centre plan and Apollo’s $1 billion stake in Mubadala Capital. For Acwa, it is an expansion beyond its traditional focus on the Middle East, Africa, Central Asia and Southeast Asia into the world’s largest power market.

Acwa informed the exchange it does not anticipate the agreement will have a material financial impact. If and when any transaction happens, its impact will be evaluated and disclosed separately. The $4 billion is a planned commitment, not capital that has been deployed. Capital deployment is subject to the governance framework and approval of the individual transactions.

The statement concludes a week filled with activity for the Riyadh-based developer. Argaam also reported this week that it had signed a SAR1.79 billion ($477 million) water purchase agreement in Dubai. The developer launched a new brand identity in January 2026.

Investors will be keen to see the first deals done by the ACWA Power EIG partnership under Plenum Power and hear more details on how the $4 billion will be invested. The partners have said the platform will be expanded through a combination of acquisitions and development of new capacity. Read the full Plenum Power announcement from EIG and Acwa.