National Grid is moving aggressively into the American energy market through a massive capital commitment. The UK-based utility operator agreed to invest $1.75 billion into Joulent, a U.S. firm specializing in power solutions. In exchange for this capital, the grid operator secures a 35% stake in the company to capitalize on rising domestic energy needs.

This deal targets the surging demand from the data center industry, which requires massive amounts of reliable electricity. Specifically, the funding supports Project Kilby, an initiative designed to supply a Microsoft data center campus in West Texas. This project operates under a 20-year agreement and includes co-ownership from oil giant Chevron, with operations slated to begin in 2028.

Joulent expects to reach free cash flow positivity by the early 2030s. While the investment is substantial, National Grid stated that the spending will not disrupt its existing five-year financial framework. The company intends to reach a final investment decision regarding these infrastructure developments by the end of 2026.