National Grid invested $1.75 billion in Joulent to build dedicated AI power plants. The deal bypasses multi-year interconnection queues that have stalled hyperscale data center buildout.
Key facts
- National Grid invests $1.75B in Joulent.
- Project Kilby is a 2.67 GW gas campus in Texas.
- Chevron subsidiary Energy Forge co-develops Project Kilby.
- GE Vernova supplies turbines for Project Kilby.
- 20-year PPA with a Microsoft-operated data center.
UK-based National Grid on Tuesday unveiled a $1.75 billion strategic minority investment in power developer Joulent, backing a developer that aims to build dedicated generation for hyperscale AI data centers on faster timelines than traditional utility interconnections allow According to Data Center Knowledge. The deal, made through National Grid Ventures, comes less than a week after Engine No. 1 publicly launched Joulent as a standalone energy company focused on supplying multi-gigawatt power to AI infrastructure and other large industrial customers.
The investment will support Joulent's first project, Project Kilby, a 2.67 GW natural gas-powered generation campus in Reeves County, Texas. Joulent is developing the project with Chevron subsidiary Energy Forge and GE Vernova to supply a Microsoft-operated data center campus under a 20-year power purchase agreement (PPA). Joulent said it has formalized a 50% ownership stake in Project Kilby.
Kilby builds on Joulent's "Across-the-Meter" model, which places dedicated generation adjacent to large AI campuses to accelerate deployment while limiting immediate impacts on the transmission system. Projects are designed for eventual grid interconnection, and future developments could incorporate renewables, beginning with solar.
The move reflects a broader change in hyperscale planning as developers pursue dedicated power plants, behind-the-meter generation, and other alternatives to lengthy interconnection timelines. Rather than waiting years for transmission upgrades, operators are pairing new generation directly with AI campuses to secure schedule certainty while seeking eventual grid integration.
Neil Osnato, founder of Persistence Analytics Group, told Data Center Knowledge that the investment is "less about one company and more about a structural shift in how hyperscale infrastructure is being financed and delivered." Osnato added: "The biggest takeaway is that power availability is becoming the primary determinant of data center development."
Key Takeaways
- National Grid invested $1.75B in Joulent to build dedicated AI power plants, bypassing grid delays.
- Project Kilby, a 2.67 GW gas campus, will supply a Microsoft data center.
What to watch
Watch for Joulent's next project announcements outside Texas and whether utilities respond with accelerated interconnection processes. The Q4 2026 construction timeline for Project Kilby will signal if the across-the-meter model delivers on its 2-3 year promise versus standard 5-7 year interconnection queues.
Source: datacenterknowledge.com
