CPP Investments Takes Stake in 11GW Power Generation Company

The Canada Pension Plan Investment Boardannounced Thursday a definitive agreement to take a $1 billion minority stake in U.S. power generation company Alpha Generation LLC, an affiliate of power and infrastructure investor ArcLight Capital Partners LLC.

The investment is expected to close in the first half of 2026, pending regulatory approval. AlphaGen previously received a $500 million minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority.

“As power has become the bottleneck to the rapidly evolving growth of [artificial intelligence], the need for critical infrastructure that can provide capacity, reliability and ‘time to power’ in a sustainable way is increasingly important,” a statement from CPP Investments said.

The C$731.7 billion ($524.35 billion) Canadian pension fund’s statement noted that ArcLight and AlphaGen are well positioned to meet energy demand in growing markets such as Pennsylvania and Ohio.

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AlphaGen manages more than 11 GW in power assets across the northeastern U.S. and southern California. Its energy generation stations are owned by funds managed by ArcLight, according to the company’s website.

“AlphaGen provides efficient, reliable power in some of the most high-demand U.S. markets. As demand for electricity accelerates, these assets will play a vital role in balancing renewable growth with the need for reliable supply,” said Bill Rogers, CPP Investments’ head of sustainable energies, in a statement.

The rapid buildout of data centers and other digital infrastructure to support the AI boom has created an enormous demand for energy. McKinsey & Co. projects data centers to account for 11.7% of total U.S. power demand in 2030, up from 3.7% in 2023. The consulting firm also anticipates $6.7 trillion in capital expenditure to be deployed in data center infrastructure through 2030.

“CPP Investments continues to invest to support the global economy’s energy transition, providing long-term capital to a global portfolio of assets across the energy spectrum including power generation, midstream, renewables and conventional energy,” the fund stated.