ArcLight Capital Partners, LLC announced that it has entered into definitive agreements to acquire 100 percent of the economic interests in Middletown Energy Center, a top quartile, highly efficient 484 MW natural gas fired power generation asset located in Butler County, Ohio.
ArcLight is acquiring Middletown through a series of transactions from a consortium of sellers.
The transaction is ArcLight's most recent investment in power infrastructure, a sector it has been investing in since the firm's inception in 2001. Since then, ArcLight has made over 50 power infrastructure investments, representing one of the most extensive and longest track records in the power infrastructure sector in North America.
Middletown, which commenced operations in 2018, is one of the newest natural gas combined cycle power plants in PJM, with access to advantaged gas supply. Middletown provides reliable and dispatchable power to the PJM market, the largest wholesale electricity market in the U.S. The asset has a strong historical operating track record and is located in a market with material demand tailwinds from AI and data center related power demand.
"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," said Angelo Acconcia, Partner at ArcLight. "This acquisition is the latest example of ArcLight's value-add electric infrastructure investing strategy which includes power, renewables, battery storage, transmission, natural gas transmission and storage, and digital power."
"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," said Andrew Brannan, Managing Director at ArcLight. "Reliable and efficient power generation is essential to ensuring continued industrial and data-center related investment in the region, and highly efficient resources such as Middletown are vital to these initiatives."
Since 2001, ArcLight has owned, controlled, or operated over 65 GW of assets and 47,000 miles of electric and gas transmission infrastructure, with over $80 billion of enterprise value. With its deep industry experience and suite of internal operational and technical resources, ArcLight believes it is well positioned to deliver the innovative and customized electric infrastructure solutions required by AI and data center power demand. Today, ArcLight manages the largest private power infrastructure portfolio in North America.
Financial terms of the private transaction were not disclosed. The transaction is expected to close in 2025, subject to regulatory approvals. Latham & Watkins LLP is serving as legal counsel to ArcLight.
