DigitalBridge, the SoftBank-backed data centre investor, agreed to buy energy-focused private equity firm ArcLight Capital Partners for up to $1.05bn, combining two major alternative asset managers. The deal merges one of the largest data centre owners with a power investor known for successful bets in coal and natural gas, creating a vertically integrated platform for AI infrastructure development.

The acquisition targets a growing bottleneck in the AI boom: power supply. As data centre projects fall behind schedule amid surging energy demand, DigitalBridge seeks to rapidly build and power facilities while maintaining ArcLight as a standalone business. This follows similar moves by Blackstone and Brookfield partnering with utilities and power producers to support their data centre portfolios.

SoftBank is simultaneously closing a more than $4bn takeover of DigitalBridge, which will anchor its massive AI infrastructure investments. The combined entity will manage over $150bn in assets and work together on North American opportunities, pairing data centre construction expertise with energy asset ownership.

DigitalBridge founder Marc Ganzi said success in this market requires equal depth in underwriting both digital and energy infrastructure. ArcLight founder Daniel Revers joins the board as vice-chair, leveraging SoftBank's Big Tech relationships to accelerate growth in the power-hungry AI sector.