BlackRock-owned Global Infrastructure Partners and EQT are acquiring AES Corporation for $33.3 billion, betting on surging electricity demand driven by AI and data centers. The private equity firms will pay $15 per share in an all-cash deal, representing a 40 percent premium to AES's share price before takeover rumors emerged last July.

The deal includes AES's $22.7 billion debt load and values the utility's equity at $10.7 billion. Qatar's sovereign wealth fund and the California Public Employees' Retirement System will also participate in the transaction. AES, which operates power plants across 14 countries, has underperformed on public markets despite rising investor interest in utilities following the AI boom.

This acquisition comes amid a flurry of power sector deals, including Constellation Energy's $30 billion purchase of Calpine and Blackstone's $11.5 billion deal for TXNM. GIP has been particularly active, recently agreeing to acquire Minnesota-based utility Allete for over $6 billion. The firms plan to expand AES's renewable operations and increase capacity to meet growing power demand, particularly from technology giants like Microsoft, Meta, and Alphabet that operate massive data centers.