National Grid invests $1.75B in Joulent; 2.67 GW Microsoft data center power plant by 2028

National Grid Ventures, the commercial arm of British utility National Grid plc, is investing $1.75 billion for a 35% stake in Joulent, a Houston-based energy infrastructure startup. The deal, announced July 1, forms a strategic partnership focused on developing power solutions for U.S. large-load customers, particularly AI-driven data centers seeking to bypass the traditional grid.

Joulent's flagship project, Project Kilby, is a 2.67-gigawatt co-located gas-fired power plant in West Texas, developed as a 50/50 partnership with Chevron Corporation, with GE Vernova supplying turbines. The facility will supply dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement, targeting first power delivery in 2028. Critical equipment has already been secured.

The investment reflects an accelerating trend: AI data center electricity demand grew 17% in 2025 versus 3% global average, creating a structural imbalance between compute-scale requirements and grid connection timelines. Joulent's modular Across-the-Meter approach integrates gas generation, battery storage, renewables, and direct grid connections to provide electricity faster than traditional utility interconnects.

For infrastructure planners and energy-sector stakeholders: this signals mainstream utility capital pivoting to dedicated AI-power infrastructure as a differentiated asset class. National Grid's involvement lends utility expertise in system balancing and high-voltage networks alongside venture-speed execution. Watch for similar dedicated-power commitments from other hyperscalers (Google, Meta) and domestic utilities as the 2028–2030 data center expansion window crystallizes demand.