AI Summary
National Grid Ventures will spend $1.75 billion for a 35% stake in Joulent LLC, expanding its U.S. contracted power footprint for AI-driven data centers. The Kilby project, a 2.67 GW co-located facility in West Texas with Chevron, targets first power in 2028 under a 20-year Microsoft PPA, signaling long-duration, high-volume grid connections and an expanded multi-project pipeline.
Sentiment Rationale
The deal expands NGG's exposure to high-growth, contracted infra with visible cash flows (20-year PPA, Kilby). It also signals a scalable AI-power framework and potential multi-GW project pipeline, which could lift NGG's earnings visibility and valuation over time. Similar long-duration infra bets have supported NGG's buy-and-hold intrinsic value when tied to regulated returns and toll-style cash flows.
Trading Thesis
Bullish NGG exposure to AI data-center power over the next 12–24 months as Kilby advances and Joulent pipeline develops.
Market-Moving
- Kilby secures a 20-year PPA with Microsoft, enhancing revenue visibility.
- Kilby development is advanced with GE Vernova turbines and EPC capacity.
- NGV's $1.75B investment signals commitment to AI-driven large-load growth.
- Potential to connect >10 GW of data-center demand for U.K. and U.S. over five years.
Key Facts
- NGV to invest $1.75B for 35% in Joulent LLC.
- Kilby: 2.67 GW West Texas co-located power; first power by 2028.
- Final investment decision expected in 2026; expands NGV's U.S. data-center focus.
- Joulent enables AI-driven large-load power with Across-the-Meter solutions.
Companies Mentioned
- National Grid plc (NGG): NGV investment strengthens NGG's long-duration infrastructure exposure and potential long-run cash flow growth.
- Joulent LLC (N/A): Privately held; strategic partner for AI-scale power; no public ticker.
- Chevron Corporation (CVX): 50/50 partner on Kilby; potential downstream collaboration and capital efficiency.
- Microsoft Corporation (MSFT): Kilby PPA anchors demand from a major data-center customer; validates off-take risk.
- General Electric Company (GE): Turbine supplier for Kilby; supports project readiness and capex plan.
M&A
Category: M&A. The NGV stake in Joulent represents a strategic corporate development and potential value creation via long-duration, contracted power for AI/data-center growth.