EQT Infrastructure VII has signed a definitive agreement to acquire Copia Power from Carlyle. The official transaction value was not disclosed in the announcement. The Financial Times reports the transaction at a valuation of approximately $2.6 billion. The transaction is expected to close by end of 2026, subject to customary closing conditions and regulatory approvals.

Copia Power was founded by Carlyle in 2021. Its business model integrates electricity generation, transmission connectivity, and large-scale data center load on a single campus and at a single grid interconnection point — addressing what has become the defining constraint in AI infrastructure deployment: reliable, large-scale power supply with grid access.

Copia Power's portfolio at announcement includes:

• 2.6 GW of generation and storage capacity in operation or under construction
• 9+ GW of grid-connected data center projects in development
• 25+ GW of solar and storage project pipeline
• ~7 GW of natural gas generation projects

The combination of generation assets, storage, transmission access, and co-located data center capacity distinguishes Copia from single-asset energy developers. The platform's value lies not in any individual project but in the integrated stack: power generation, grid interconnection rights, and data center tenancy — all at the same point on the grid.

Carlyle's 2021 Formation of Copia Power

Carlyle formed Copia Power in 2021 as a purpose-built platform to develop integrated energy and data center infrastructure. The formation reflected Carlyle's thesis that the convergence of AI compute demand and energy infrastructure constraints would create significant value for platforms capable of delivering co-located power and data center capacity at scale.

Carlyle assembled a management team with expertise spanning energy development, grid interconnection, and data center infrastructure. Over five years, the platform built a diversified pipeline spanning solar, storage, natural gas, and data center development across multiple U.S. markets.

Exit Valuation and Returns

According to the Financial Times, Carlyle is expected to achieve a return of more than five times its invested capital on the Copia Power exit. This return profile — on a platform formed only in 2021 — reflects the dramatic repricing of AI-adjacent energy infrastructure assets over the 2022–2026 period, driven by hyperscaler demand for co-located power and the scarcity of grid interconnection capacity in major U.S. markets.

EQT Infrastructure VII

EQT is a Swedish global investment firm with a significant infrastructure investment platform. EQT Infrastructure VII is EQT's latest infrastructure fund. EQT's acquisition of Copia Power is consistent with its strategy of building integrated digital infrastructure platforms — combining data centers, fiber networks, renewable energy, and grid infrastructure. EQT intends to use Copia Power alongside its existing data center, fiber, and renewable energy investments to create an integrated digital infrastructure platform.

The Copia Power transaction illustrates a structural shift in how AI infrastructure is valued and transacted.

Grid Interconnection as the Scarce Resource

The deployment of large-scale AI compute — training clusters, inference infrastructure, and hyperscaler data centers — requires power at a scale and reliability that has outpaced the ability of utilities and grid operators to deliver new interconnection capacity. In major U.S. markets, interconnection queue wait times have extended to five years or more. Platforms with existing or near-term grid interconnection rights — like Copia's 9+ GW of grid-connected data center pipeline — command significant premiums because the interconnection rights themselves are the scarce input.

Co-Location as Value Driver

Copia's model — generation, storage, transmission, and data center load on a single campus — eliminates the transmission losses, curtailment risk, and grid congestion that affect energy projects that must deliver power across the grid to a remote data center. Co-location also simplifies the power purchase agreement structure: the data center tenant can contract directly with the on-site generator, reducing exposure to wholesale market volatility and transmission constraints.

Natural Gas as Reliability Anchor

Copia's ~7 GW natural gas pipeline reflects the reality that AI data centers require 24/7 firm power — not just renewable energy that is subject to weather variability. Natural gas generation provides the dispatchable, firm capacity that data center operators require as a reliability anchor, even as solar and storage provide the majority of energy supply. This combination — renewable energy plus dispatchable gas plus storage — is increasingly the standard architecture for large-scale AI data center power supply.

The reported ~$2.6 billion transaction value significantly exceeds the 2026 HSR notification threshold of $133.9 million. Absent an applicable exemption, the parties will be required to file pre-merger notification with the Federal Trade Commission and the Department of Justice and observe the applicable waiting period. Energy infrastructure transactions of this scale routinely require HSR filings; the substantive antitrust analysis will assess competitive effects in relevant markets for electricity generation, storage, and data center services.

If the transaction involves the transfer of jurisdictional facilities — FERC-regulated electric utilities, transmission assets, or holding company control over such assets — FERC approval under Section 203 of the Federal Power Act may be required. FERC Section 203 review assesses whether the transaction is consistent with the public interest, including effects on competition, rates, and regulation. The applicability of Section 203 depends on the specific assets being transferred and whether they are subject to FERC jurisdiction; this analysis will be determined as the transaction structure is disclosed.

Several states require approval from state public utility commissions for changes of control over generation or transmission assets. The states in which Copia Power's operational assets are located will determine which state-level approvals are required. State PUC proceedings can be time-consuming and may involve conditions on the transaction, including commitments on rates, reliability, or local employment.

Copia Power's value is substantially derived from its grid interconnection rights and transmission agreements. These agreements — with regional transmission organizations (RTOs), independent system operators (ISOs), and utilities — typically contain assignment restrictions and change-of-control provisions. EQT's due diligence will need to confirm that Copia's interconnection agreements are transferable, that change-of-control consents can be obtained, and that the interconnection queue positions are preserved following the transaction.

Copia Power's individual projects are likely financed through project finance structures, with power purchase agreements (PPAs) with data center tenants or utilities, and credit agreements with project lenders. Each of these agreements will contain change-of-control provisions requiring lender, offtaker, or counterparty consent. Obtaining these consents across a 2.6 GW operational portfolio and a multi-gigawatt development pipeline is a significant closing condition and a key driver of the transaction timeline.

Copia's data center tenants — hyperscalers, AI companies, or enterprise customers — will have long-term lease or power purchase agreements for co-located capacity. These agreements are likely to contain change-of-control provisions requiring tenant consent or notification. The identity and concentration of Copia's data center tenant base is a key due diligence item; a small number of large tenants with consent rights could create closing risk.

Turkish energy developers and infrastructure investors. The EQT/Copia Power transaction establishes a valuation framework for integrated energy-plus-data-center platforms that is directly relevant to Turkish energy developers. Turkey has significant renewable energy resources — solar, wind, and hydropower — and a growing data center market driven by domestic demand and Turkey's position as a regional hub. Turkish energy developers with grid interconnection rights, generation assets, and the ability to co-locate data center capacity should assess whether a similar integrated platform model is applicable in the Turkish market.

Turkish construction and EPC contractors. Copia Power's 2.6 GW operational and construction portfolio and multi-gigawatt development pipeline represent significant EPC and construction opportunity. Turkish construction companies with experience in power plant construction, transmission infrastructure, and data center development should monitor the EQT/Copia platform for potential subcontracting or partnership opportunities as the platform continues to develop its pipeline.

Investment model for Turkish energy-tech platforms. The Copia Power model — combining generation licenses, grid connection capacity, data center development rights, and long-term energy supply contracts under a single platform — is a replicable investment thesis for Turkish markets. Turkish investors and developers building energy platforms should consider whether integrating data center tenancy, battery storage, and grid connection rights into a single platform structure could unlock similar institutional investor interest and valuation premiums.

Cross-border M&A in energy infrastructure. The transaction illustrates the complexity of energy infrastructure M&A: multi-jurisdictional regulatory approvals, FERC review, state PUC proceedings, interconnection agreement assignments, and project finance consent processes. Turkish companies considering U.S. energy infrastructure acquisitions or partnerships should engage U.S. legal counsel with expertise in FERC regulation, energy project finance, and power purchase agreement structures at an early stage of transaction planning.

ULF New York advises Turkish companies and investors on cross-border M&A, U.S. energy regulation, and infrastructure investment in the United States.