National Grid Ventures to invest $1.75bn to accelerate power solutions for U.S. data centers and AI

Rhea-AI Summary

National Grid Ventures (NYSE:NGG) plans to invest $1.75 billion for a 35% stake in Joulent, forming a strategic partnership to deliver contracted power solutions for U.S. data centers and other large loads. The deal gives National Grid access to fast‑growing AI and cloud electricity demand.

The investment supports Joulent’s 2.67 GW Project Kilby in West Texas, a 50/50 venture with Chevron supplying power to a Microsoft data center under a 20‑year PPA by 2028. It is incremental to National Grid’s at least £70 billion capital plan through 2031 and will use balance sheet headroom.

Positive

• $1.75 billion investment for a 35% stake in Joulent
• Backs 2.67 GW Project Kilby with 20-year Microsoft power contract
• Exposure to large-load, AI-driven electricity demand in the U.S.
• Investment is incremental to at least £70 billion capex through 2031
• Funding from balance sheet headroom, limiting immediate external financing needs

Negative

• Large upfront capital commitment of $1.75 billion
• Final investment decision only expected in 2026, delaying full commitment clarity
• Project Kilby targets first power delivery by 2028, implying long lead time to returns

News Market Reaction – NGG

-3.25%

-3.25% Session close to close

In the Jul 1 session, NGG declined 3.25%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights NGG’s push into AI‑driven power demand via a $1.75 billion Joulent stak...

Analysis

This announcement highlights NGG’s push into AI‑driven power demand via a $1.75 billion Joulent stake and a 2.67 GW Texas project. Prior AI news saw modest moves; key risks are execution and integrating this with a large capex pipeline.

Key Figures

Investment size: $1.75 billion Equity stake: 35% Plant capacity: 2.67 GW +5 more

8 metrics

Investment size $1.75 billion NGV investment for a 35% stake in Joulent LLC

Equity stake 35% Ownership interest NGV will acquire in Joulent LLC

Plant capacity 2.67 GW Planned capacity of Project Kilby co‑located power facility

Contract term 20-year Power purchase agreement with Microsoft‑operated data center

New demand connections more than 10 GW Expected data center demand NGG plans to connect over five years

Capex program at least £70 billion Five‑year capital investment program through 2031

Capex in USD approximately $90 billion USD equivalent of five‑year capital investment program

Target start date 2028 Targeted first power delivery date for Project Kilby

Previous AI Reports

3 past events · Latest: May 06 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
May 06	AI grid collaboration	Positive	+0.2%	Partnership to deploy AI decision‑support for electric grid operations and planning.
Dec 02	AI wildfire initiative	Positive	-0.0%	AI platform deployment to quantify wildfire risk across key US and UK networks.
Mar 12	AI forecasting investment	Positive	+0.0%	Strategic investment in AI‑powered energy forecasting firm to enhance grid stability.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

AI‑tagged announcements for National Grid have historically produced modest, generally positive share moves.

Key Terms

power purchase agreement, battery storage, epc capacity, balance sheet headroom, +1 more

5 terms

power purchase agreement financial

"that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement."

A power purchase agreement (PPA) is a long-term contract in which a buyer agrees to purchase electricity from a generator at an agreed price and schedule, similar to a multi-year subscription for power or a long-term lease of an energy source. Investors care because PPAs provide predictable revenue and cash flow for the generator, reduce market-price exposure, and shift credit and performance risk to the buyer, all of which affect valuation, financing and perceived investment stability.

battery storage technical

"These solutions include co-located gas generation, battery storage, renewables integration and 'Across-the-Meter' grid connections."

Battery storage is a system that stores electricity in large rechargeable batteries so power can be used later, like a reusable fuel tank for the grid. Investors care because it smooths out when energy is available vs. when it’s needed, can lower costs, create new revenue from selling stored power at peak times, and reduce reliance on unpredictable energy sources, affecting utility and clean-energy company valuations.

epc capacity technical

"with secured critical equipment including GE Vernova turbines and reserved EPC capacity, and it is targeting first power delivery"

EPC capacity is the amount of project work an engineering, procurement and construction (EPC) contractor can handle or deliver, often expressed as the size of projects (for example megawatts of power) under contract or in execution. For investors it signals how much revenue and cash flow the contractor could generate and how stretched its workforce and equipment are—like knowing how many houses a builder can realistically finish on time, which affects profits and risk.

balance sheet headroom financial

"and will be funded through the Group's balance sheet headroom, with a final investment decision expected in 2026."

Balance sheet headroom is the cushion a company has between its current financial resources and the limits of what it can borrow or must pay, combining cash on hand, unused credit lines, and room before hitting loan covenants. Think of it as a spare tire and available credit on a road trip: it shows how easily the company can handle unexpected expenses, invest, pay dividends, or avoid emergency fundraising, which directly affects investor risk and value.

high-voltage networks technical

"including expertise in high-voltage networks, system integration and balancing, infrastructure development and project execution."

The system of power lines, substations and control equipment that carries electricity at high voltages over long distances between power plants and local distribution networks; think of it as the highway network that moves large quantities of electricity from where it’s generated to where it’s used. Investors care because these assets determine how reliably and efficiently power is delivered, require large, long-lived investments and are shaped by regulation and maintenance needs that affect revenue, costs and risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WASHINGTON, July 1, 2026 /PRNewswire/ -- National Grid Ventures (NGV), the commercial arm of National Grid plc, has agreed to invest $1.75 billion for a 35% stake in Joulent LLC, forming a broad strategic partnership to develop contracted power and electrical infrastructure solutions for U.S. large load demand.

Zoë Yujnovich, Chief Executive of National Grid, said: "Our investment in Joulent is a disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy. Through National Grid Ventures, we are gaining exposure to a major source of electricity demand growth with strong partners. It extends National Grid's core strengths of investing in long-duration infrastructure with predictable cash flows and attractive risk-adjusted returns."

Chris James, Founder and CEO of Joulent, said: "This investment from National Grid Ventures strengthens Joulent's ability to deliver reliable, large-scale power on the timelines AI infrastructure and advanced industry now requires. We are building an independent company designed for speed, scale and execution, without shifting the cost of that growth onto local communities while also providing tailor-made and cost competitive solutions for our customers."

Rising demand from data centers and other power-intensive industries is driving the need for dedicated, scalable power — often outpacing the timelines of traditional grid connections. This investment is consistent with National Grid's ambition to pursue selective critical infrastructure growth opportunities emerging from the transforming energy landscape, and marks NGV's entry into one of the fastest-growing areas of electricity demand.

Joulent has built the capabilities, partnerships and resources to develop integrated power solutions for U.S. large load customers, including data centers, helping to accelerate speed-to-power. These solutions include co-located gas generation, battery storage, renewables integration and 'Across-the-Meter' grid connections. Joulent's solutions are designed to scale quickly to meet near-term large load power demand, supporting economic growth without shifting costs onto local communities, while enabling a longer-term path to grid connection.

NGV's investment will enable the development of Joulent's foundational project, Project Kilby ("Kilby"), in a 50/50 partnership with Chevron Corporation. Kilby is a 2.67 GW co-located power facility in West Texas that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement. Development of the project is at an advanced stage with secured critical equipment including GE Vernova turbines and reserved EPC capacity, and it is targeting first power delivery by 2028.

Noelle Walsh, Microsoft President of Cloud Operations + Innovation, said: "AI and cloud are advancing at a pace that requires closer coordination between energy and infrastructure, and we welcome National Grid Ventures' experience and capabilities in helping address this challenge and support reliable, high‑performance compute at scale."

Joulent also has a multi-gigawatt pipeline of future projects that could provide incremental growth over time.

This strategic partnership is intended to extend beyond capital, with National Grid enhancing Joulent through its deep operational capabilities, including expertise in high-voltage networks, system integration and balancing, infrastructure development and project execution. The partnership is also expected to provide insights and relationships that can strengthen National Grid's data center connection program, where it expects to connect more than 10 GW of demand across the U.K. and U.S. over the next five years.

The investment is incremental to National Grid's existing five-year capital investment program of at least £70 billion (approximately $90 billion) through 2031 and will be funded through the Group's balance sheet headroom, with a final investment decision expected in 2026. It reflects a disciplined, long-term approach to supporting the energy systems of the future.

About National Grid Ventures
National Grid Ventures (NGV), the commercial arm of National Grid plc, develops, builds and operates energy infrastructure that strengthens the power system and delivers reliable, affordable energy for communities. 

In the U.S., NGV's portfolio includes competitive transmission, battery storage, solar, LNG storage, and conventional generation assets. A global leader in transmission infrastructure, NGV operates the world's largest portfolio of high voltage subsea interconnectors in Europe and is applying that expertise to strengthen and expand the U.S. electric grid. NGV brings decades of experience partnering with regulators and local stakeholders to build energy infrastructure that supports economic growth, improves reliability, and helps deliver lower cost energy to customers.

About Joulent
Joulent is a technology-driven energy company purpose-built to deliver reliable, multi-gigawatt energy at the speed and scale required to build the compute for artificial intelligence and other compute-intensive industries. Joulent develops and delivers firm, baseload power solutions engineered to meet the unique demands of advanced computing while minimizing impacts on existing power grids. Its modular, Across-the-Meter™ approach integrates generation, storage, and advanced controls to deliver scalable power directly to new industrial loads, while reducing strain on existing grids and providing exportable power over time.

View original content to download multimedia:https://www.prnewswire.com/news-releases/national-grid-ventures-to-invest-1-75bn-to-accelerate-power-solutions-for-us-data-centers-and-ai-302815750.html

SOURCE National Grid

FAQ

What did National Grid Ventures (NYSE:NGG) announce about its $1.75 billion Joulent investment on July 1, 2026?

National Grid Ventures plans to invest $1.75 billion for a 35% stake in Joulent. According to National Grid, the partnership targets contracted power and electrical infrastructure for U.S. large-load customers, including data centers and AI-driven facilities.

How will Project Kilby support Microsoft’s data center power needs under the National Grid and Joulent deal?

Project Kilby is a 2.67 GW co-located power facility in West Texas serving a Microsoft-operated data center. According to National Grid, it will supply dedicated electricity under a 20-year power purchase agreement, with first power delivery targeted by 2028.

What is the strategic importance of Joulent for National Grid Ventures (NGG) investors?

The Joulent stake gives National Grid exposure to AI and data center electricity demand growth. According to National Grid, Joulent develops integrated solutions like gas generation, battery storage, renewables integration and grid connections for U.S. large-load customers.

How does the Joulent investment fit into National Grid’s £70 billion capital plan through 2031?

The Joulent investment is incremental to National Grid’s at least £70 billion capital investment program through 2031. According to National Grid, it will be funded via the group’s balance sheet headroom, with a final investment decision expected in 2026.

What types of power solutions will Joulent and National Grid Ventures provide for U.S. data centers?

Joulent plans to deliver contracted, scalable power solutions for large-load customers such as data centers. According to National Grid, offerings include co-located gas generation, battery storage, renewables integration and “Across-the-Meter” grid connections designed to accelerate speed-to-power.

How might the National Grid–Joulent partnership affect future growth opportunities for NGG shareholders?

The partnership provides access to a multi-gigawatt project pipeline tied to AI and cloud demand. According to National Grid, the relationship may also strengthen its data center connection program, which aims to connect more than 10 GW of demand in the U.K. and U.S. over five years.