ArcLight Capital Partners has announced its acquisition of the Middletown Energy Center, a 484 MW natural gas-fired power generation asset in Ohio. This strategic move aims to support the escalating power demands driven by AI and data center expansion in the region.
ArcLight Capital Partners, LLC, a prominent infrastructure investment firm, today announced it has entered into definitive agreements to acquire 100 percent of the economic interests in the Middletown Energy Center. This highly efficient 484 MW natural gas-fired power generation facility, located in Butler County, Ohio, is set to play a crucial role in meeting the burgeoning electricity demands, particularly from the rapidly expanding artificial intelligence (AI) and data center sectors in the state.
The acquisition of Middletown Energy Center marks ArcLight's latest strategic investment in the power infrastructure sector, an area in which the firm has maintained a significant focus since its inception in 2001. With over 50 power infrastructure investments to date, ArcLight boasts one of the most extensive and longest track records in North America's power infrastructure landscape. This transaction underscores ArcLight's continued commitment to acquiring and enhancing critical energy assets that support evolving market needs.
Middletown Energy Center, which commenced operations in 2018, stands as one of the newest natural gas combined cycle power plants within the PJM Interconnection, the largest wholesale electricity market in the U.S. Its advantageous access to gas supply and a strong historical operating track record position it as a reliable and dispatchable power source for the PJM market. The facility's location in Ohio is particularly strategic, given the substantial demand tailwinds generated by the proliferation of AI and data center-related power consumption.
Angelo Acconcia, Partner at ArcLight, emphasized the significance of the acquisition, stating, "With increasing demand for digital infrastructure, Ohio has emerged as a premier hub for data centers and Middletown Energy Center, with ArcLight's stewardship, stands ready to meet the substantial electric infrastructure needs of this vital sector." He further highlighted that this acquisition exemplifies ArcLight's value-add electric infrastructure investing strategy, which encompasses a broad spectrum of assets including power generation, renewables, battery storage, transmission, natural gas transmission and storage, and digital power solutions.
Andrew Brannan, Managing Director at ArcLight, echoed this sentiment, adding, "We expect Middletown to play an increasingly critical role in providing reliable and affordable power to a market that is experiencing a rapid expansion of data center-driven demand growth."
