Analysis
National Grid Ventures announced on July 1, 2026 that it will invest $1.75 billion for a 35% stake in Joulent, a US platform developing contracted power generation and high-voltage transmission infrastructure for large load customers such as data centers, valuing Joulent at approximately $5 billion. The deal gives National Grid direct exposure to the fast-growing AI-driven electricity demand cycle while diversifying the utility's regional US footprint beyond its traditional regulated business.
The capital will help fund Joulent's flagship initiative, Project Kilby, a 2.67 gigawatt co-located power facility in West Texas being developed 50/50 with Chevron. The project is structured to supply a Microsoft data center campus under a 20-year power purchase agreement beginning in 2028, giving Joulent a long-duration, contracted revenue stream anchored by one of the largest AI infrastructure buyers in the world.
National Grid's decision to take a large minority stake rather than acquire Joulent outright preserves the startup's operating independence while providing deep utility-sector expertise and balance-sheet support -- a structure that lets a regulated incumbent participate in unregulated, higher-return infrastructure growth without taking on full ownership risk. The company expects Joulent's contracted infrastructure model to generate returns above its core regulated utility business.
“The capital will help fund Joulent's flagship initiative, Project Kilby, a 2.67 gigawatt co-located power facility in West Texas being developed 50/50 with Chevron.”
The deal is part of a broader 2026 pattern of large-scale, long-duration capital flowing specifically toward power generation for AI data centers, as compute buildout increasingly runs into grid capacity constraints faster than traditional utility planning and permitting cycles can accommodate. Joulent's model -- co-locating new generation directly with the customer it serves, rather than relying purely on existing grid interconnection queues -- is one of several approaches startups and incumbents are testing to solve that bottleneck.
For infrastructure and energy investors, a $1.75 billion strategic check from a regulated utility parent into a five-year-old-style power platform is a strong signal that traditional energy incumbents now see direct equity investment in AI-adjacent power infrastructure as core strategy, not a side bet. For founders in the energy-for-AI space, National Grid's structure -- a large minority stake plus a marquee anchor customer relationship -- is a template worth studying for how to access utility-scale capital while retaining operating control.
What to watch: whether Project Kilby's 2028 in-service date holds as the facility moves through construction, whether National Grid pursues additional similar minority stakes in other AI-power infrastructure platforms, and how Joulent's five billion dollar valuation compares once more of its contracted pipeline beyond Project Kilby becomes public.
