Ares Management Corporation said on Monday that a fund managed by its Infrastructure Opportunities unit has acquired a 49 percent stake in a diversified U.S. renewable energy platform firm EDP Renováveis (EDPR), valuing the business at about $2.9 billion.
The transaction marks one of the most significant U.S. clean energy deals this year, underscoring how institutional investors are deepening commitments to the energy transition as power demand rises sharply across data-intensive industries.
According to Ares, the deal brings the total capacity owned by its Infrastructure Opportunities funds to about 5.7 gigawatts, spread across 11 states and five U.S. power markets, as of September 2024. The acquisition expands Ares’ existing footprint across the country, reinforcing its strategy of investing in long-term contracted assets capable of generating stable cash flows while meeting the accelerating need for renewable generation.
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The platform acquired from EDPR consists of ten operational assets totaling approximately 1,632 megawatts (MW) of installed capacity. These include about 1,030 MW of solar, 402 MW of wind, and 200 MW of battery storage projects distributed across four key U.S. power markets. All the assets have signed long-term power purchase agreements (PPAs) with an average remaining contract duration of 18 years—ensuring predictable revenue streams and strong counterparty security for Ares’ investors.
The deal comes amid a broader wave of capital inflows into clean energy and grid infrastructure. Ares said the transaction will not only strengthen its domestic presence but also broaden its exposure to fast-growing clean energy segments, particularly as the U.S. energy landscape undergoes rapid transformation driven by digitalization, artificial intelligence, and electrification trends.
The investment manager has been doubling down on renewable and infrastructure assets in recent years, betting that the global pivot toward net-zero emissions will sustain long-term growth opportunities. Demand for renewable energy in the U.S. has surged as large technology firms, including Amazon, Microsoft, and Google, sign record-breaking renewable energy contracts to power their data centers and AI operations. Analysts estimate that data center electricity consumption in the U.S. could more than double by 2030, creating significant new demand for clean power sources.
EDP Renováveis, based in Spain and majority-owned by Portuguese utility EDP, is one of the world’s largest renewable energy developers, with operations across Europe, North America, South America, and the Asia-Pacific region. The company has increasingly relied on asset rotation deals—selling minority stakes in operational portfolios—to recycle capital into new developments and accelerate its global expansion. Its collaboration with Ares reflects that strategy, providing fresh liquidity to finance upcoming projects in emerging markets and offshore wind.
EDPR’s North American arm, which manages a significant portion of its global installed capacity, has been particularly active in expanding across the U.S. Midwest, Texas, and the Southeast, regions where grid modernization and renewable integration are now policy priorities. The assets covered by the Ares deal are all connected to these high-demand zones, which have been drawing attention from institutional investors seeking exposure to the U.S. Inflation Reduction Act’s tax incentives for renewable and storage projects.
For Ares Management, headquartered in Los Angeles, the deal marks another major step in its transition from traditional infrastructure investment to sustainable energy portfolios. The company’s Infrastructure Opportunities funds have been among the most active in acquiring renewable assets, with holdings now spanning wind, solar, storage, and transmission systems.
The firm said the partnership with EDPR complements its growing strategy of investing in energy transition assets that provide both environmental and economic returns. Analysts say that Ares’ continued expansion in renewables positions it as a leading private capital player in a sector that has become central to both U.S. industrial policy and the global shift toward clean energy.
Industry observers also note that the timing of the deal reflects a convergence of factors driving investor appetite—volatile fossil fuel prices, tightening emissions regulations, and unprecedented power consumption from AI computing. With long-term PPAs and a geographically diversified portfolio, Ares’ investment is seen as a hedge against both market volatility and regulatory shifts.
As the AI revolution accelerates, so too does the race to secure reliable, carbon-free electricity. Ares’ latest acquisition signals that private equity and infrastructure funds are now competing as aggressively as utilities and energy majors for ownership stakes in the renewable assets that will power the next decade of digital and industrial growth.