AI electricity demand reshapes energy investment, and Brookfield (BAM.US) takes over energy storage giant Aypa for $7 billion

The Zhitong Finance App learned that Brookfield Asset Management (BAM.US) has agreed to spend 7 billion US dollars (including debt) to acquire battery energy storage developer Aypa Power. This move comes at a time when demand from companies fueling the artificial intelligence (AI) boom is surging.

A joint statement issued by the two companies on Wednesday stated that the investment company is buying Aipa Power from Blackstone Energy Transformation Partners, and the deal gives Aypa a $3 billion equity value.

Demand for infrastructure required for AI data centers has surged, increasing the appeal of enterprises with relevant supply capabilities. Specifically, data center operators are increasingly valuing battery systems that can store excess power to minimize the risk of power outages in their facilities. At the same time, they are also using battery technology to speed up the grid-connection process, and some facilities can be put into operation several years ahead of schedule.

Aypa is responsible for the development, ownership and operation of energy storage sites and hybrid renewable energy projects for wind and solar storage in North America. The company currently has 6.5 gigawatts of battery capacity in operation and contracted, and more than 20 gigawatts of project development. According to the statement, 95% of its asset portfolio has already signed offtake agreements, and the average remaining contract period is 17 years. One gigawatt capacity is roughly equivalent to the installed capacity of a conventional nuclear reactor.

According to the statement, the deal covers Aypa's projects in transit, under construction and signed contracts, development platforms, and a professional team of about 200 people.

A person familiar with the matter anonymously revealed that for Blackstone, this sale will bring a 6.2 times return on investment capital.

Through its global transformation strategy, Brookfield will work with stakeholders including Brookfield Renewable Partners (Brookfield Renewable Partners) to complete the investment in Aypa. The investment company has recently continued to expand its energy suppliers. Over the past 18 months, it has reached a number of multi-billion dollar deals, including the acquisition of Canadian renewable energy developer Boralex and its French counterpart Neoen.