National Grid bets $1.75 billion on AI power demand with Joulent investment for Microsoft

National Grid Ventures Commits $1.75 Billion to Power AI Infrastructure

Britain's National Grid announced it will invest $1.75 billion to acquire a 35% stake in Joulent LLC, a U.S.-based energy platform focused on developing power generation infrastructure for data centers 1

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. The Joulent investment marks a strategic bet on surging AI power demand as tech companies race to build computing capacity for artificial intelligence workloads. National Grid Ventures, the infrastructure investment arm of the British utility giant, describes this as a "disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy," according to CEO Zoë Yujnovich 2

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Project Kilby: A 2.67-Gigawatt Gas-Fired Power Facility for Microsoft

The investment will fund Joulent's inaugural project, known as Project Kilby, a 2.67-gigawatt gas-fired power facility located in West Texas 3

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. Developed through a 50/50 partnership with Chevron, the facility will supply electricity exclusively to a Microsoft-operated data center campus under a 20-year power purchase agreement 1

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. The project has already secured critical equipment, including GE Vernova turbines, and reserved engineering and construction capacity, targeting first power delivery by 2028 2

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Microsoft Signals Urgency Around Energy Needs of AI Infrastructure

Noelle Walsh, Microsoft President of Cloud Operations + Innovation, emphasized the accelerating pace of cloud computing and AI development. "AI and cloud are advancing at a pace that requires closer coordination between energy and infrastructure, and we welcome National Grid Ventures' experience and capabilities in helping address this challenge and support reliable, high-performance compute at scale," Walsh stated 2

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. This partnership reflects Microsoft's strategy to secure dedicated power sources for its expanding AI operations rather than competing for grid capacity.

Financial Framework and Long-Term Pipeline

The $1.75 billion investment sits outside National Grid's existing five-year capital program of at least £70 billion through fiscal year 2031 2

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. UK's National Grid bets $1.75 billion will be funded through the company's existing balance sheet without affecting its current financial framework. The final investment decision is expected by the end of 2026, with Joulent anticipated to become free cash flow positive from the early 2030s 2

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. Beyond Project Kilby, Joulent has additional projects in its pipeline totaling multiple gigawatts, positioning the platform to serve growing demand from data centers and other large electricity users 2

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. Joulent develops integrated power solutions including co-located gas generation, battery storage, renewables integration and grid connections.