National Grid is preparing to invest $1.75 billion into Joulent, an energy company specializing in providing power for data centers and AI workloads. This investment is part of National Grid's larger strategy to deploy at least $88 billion (£70 billion) across its networks in the UK and US over the next five years, aiming to modernize and expand energy infrastructure to meet increasing demand, particularly from sectors like AI.
Joulent, founded by Engine No. 1 in collaboration with GE Vernova, focuses on delivering multi-gigawatt power solutions directly to large industrial loads. Its first major project, "Project Kilby" in West Texas, involves a natural-gas power facility co-located with a Microsoft-operated data center. This project is expected to deliver approximately 2.67 gigawatts of capacity to Microsoft under a 20-year power purchase agreement, mitigating impacts on the regional grid.
National Grid's substantial investment reflects the growing need for robust energy solutions to support the rapid expansion of AI and other demanding computational technologies. The company's CEO, Zoe Yujnovich, highlighted that these investments will support affordability, deliver cleaner energy, and strengthen energy security. Joulent's "Across-the-Meter™" solution, which involves co-locating power generation with customer demand, is designed to scale quickly and eventually integrate with existing grids, offering exportable capacity to local power markets.
This strategic move by National Grid underscores a significant shift in energy infrastructure, aiming to meet the unique and intensive power requirements of the digital economy while also supporting broader reindustrialization efforts in the US. By collaborating with companies like Joulent, National Grid is positioning itself to be a central player in powering the next generation of technological innovation.
