A $1 billion investment from Blackstone and Halliburton underscores the intense demand for power to fuel the artificial intelligence boom.
Energy startup VoltaGrid LLC has secured a $1 billion equity investment led by Blackstone Inc. and Halliburton Co., a deal that values the company at over $10 billion and aims to rapidly scale power solutions for the booming data center and AI industries. The transaction, announced Monday, provides VoltaGrid with capital to expand its fleet of gas-powered microgrids.
"VoltaGrid is a highly differentiated platform addressing one of the most important infrastructure needs of the AI era: reliable, rapidly deployable power," William Nicholson, Managing Director at Blackstone, said. "This investment is a strong example of Tac Opps' focus on providing flexible, scaled capital to exceptional entrepreneurs and businesses operating in Blackstone’s highest-conviction investment themes."
The deal consists of a $775 million primary capital injection, with an additional $225 million used to purchase shares from existing investors. Alongside the funding, Houston-based VoltaGrid will acquire one of its key suppliers, Propell Energy Technology Ltd., in a move to vertically integrate its manufacturing and engineering capabilities. Both transactions are expected to close in mid-2026, subject to customary closing conditions.
The investment addresses the critical energy bottleneck facing technology companies as the demand for artificial intelligence systems strains existing power grids. VoltaGrid's business of providing "behind-the-meter" power generation allows data centers and industrial clients to secure reliable energy without waiting for utility upgrades. The company's order book now stands at 7.5 gigawatts through 2030, and its annual earnings are projected to grow more than five-fold to $1.1 billion by 2028 from 2024, according to Fitch Ratings.
Strategic Integration with Propell
The acquisition of Propell Energy Technology is a core component of the transaction, transforming VoltaGrid into a fully integrated power generation platform. The move is expected to secure its supply chain and enhance product development.
"The acquisition of Propell adds proven engineering and integration capabilities that will further extend our technology and operational leadership as we continue to scale," Nathan Ough, Founder and Chief Executive Officer of VoltaGrid, said.
As part of the deal, VoltaGrid will immediately invest in expanding Propell’s manufacturing facilities in Granbury, Texas. The plan includes building two additional automated plants, which is expected to increase its production capacity to approximately 300 MW per month.
The AI Energy Thesis
The partnership with Blackstone, which is contributing about 90 percent of the funds, and energy services giant Halliburton highlights a shared focus on providing power for high-demand applications.
"This partnership with Blackstone is a powerful endorsement of the platform we have built and the role VoltaGrid is playing in delivering the energy infrastructure of the AI era," Ough added.
Jeff Miller, President and CEO at Halliburton, said the investment "advances VoltaGrid’s ability to deliver reliable, distributed power at scale.”
Goldman Sachs & Co. LLC acted as financial advisor to VoltaGrid, with legal advice from Kirkland & Ellis LLP and Sidley Austin LLP. Blackstone was advised by Morgan Stanley and Lazard, with legal counsel from Simpson Thacher & Bartlett LLP. Deloitte Corporate Finance and Mogan Daniels Slager LLP advised Propell.
This article is for informational purposes only and does not constitute investment advice.
