National Grid Ventures, the commercial arm of U.K.-based National Grid plc, has agreed to invest $1.75 billion for a 35% stake in Joulent LLC, a U.S. energy company purpose-built to deliver power solutions for large-scale artificial intelligence data centers and other power-intensive industries. The investment, announced July 1, 2026, marks National Grid’s entry into one of the fastest-growing areas of electricity demand as AI infrastructure deployment accelerates across the U.S.
The capital will enable development of Joulent’s foundational project, Project Kilby, a 2.67 gigawatt co-located power facility in West Texas being developed in a 50/50 partnership with oil major Chevron. Under a 20-year power purchase agreement, Kilby will provide dedicated electricity to a Microsoft-operated data center, with first power delivery targeted for 2028. The project has secured critical equipment, including GE Vernova turbines, and reserved engineering and procurement capacity.
Rising demand from data centers and other power-intensive industries is outpacing the timelines of traditional grid connections, creating an urgent need for dedicated, scalable power. According to former Google CEO Eric Schmidt’s testimony before Congress in April 2026, data centers will need 29 gigawatts of additional power by 2027, and 67 more gigawatts by 2030. Joulent’s approach integrates co-located gas generation, battery storage, renewables integration, and advanced grid connections to deliver power directly to new industrial loads while reducing strain on existing grids.
Zoë Yujnovich, Chief Executive of National Grid, said the investment represents “a disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy.” Chris James, Founder and CEO of Joulent, emphasized that the company is “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.” Noelle Walsh, Microsoft President of Cloud Operations + Innovation, noted that “AI and cloud are advancing at a pace that requires closer coordination between energy and infrastructure.”
The investment reflects broader industry recognition that power availability has become the limiting factor in AI data center deployment. Research from Sightline Climate, cited in June 2026 reporting, found that 30 to 50 percent of the 2026 U.S. data center pipeline faces delays due to grid constraints and interconnection backlogs that stretch five years. McKinsey research indicates that AI-related data center infrastructure will require $5.2 trillion in investment by 2030, underscoring the scale of capital needed to unlock power for the AI economy.
National Grid’s partnership with Joulent extends beyond capital investment. The utility will enhance Joulent through its deep operational capabilities in high-voltage networks, system integration, and infrastructure development. The partnership is also expected to strengthen National Grid’s data center connection program, where the company expects to connect more than 10 gigawatts 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.
Joulent also maintains a multi-gigawatt pipeline of future projects that could provide incremental growth over time. The company emerged from stealth in late June 2026, having been purpose-built to address the convergence of AI infrastructure buildout and energy infrastructure constraints. The final investment decision on Project Kilby is expected by the end of 2026.
Sources
- National Grid — Official announcement of $1.75 billion investment and strategic partnership with Joulent, including Project Kilby details and first power timeline.
- Wall Street Journal — Confirmation of investment amount, stake percentage, and Project Kilby’s role powering a Microsoft data center in West Texas.
- Brookings Institution — Eric Schmidt’s congressional testimony on data center power requirements (29 GW by 2027, 67 GW by 2030).
- Chevron — Details on Project Kilby’s 2.67 GW capacity and 20-year power purchase agreement with Microsoft.
- Reuters — Confirmation of investment structure and Joulent’s role in addressing AI data center power demand.
