According to Zhitong Finance APP, Brookfield Asset Management (BAM.US) has agreed to spend $7 billion (including debt) to acquire battery storage developer Aypa Power, at a time when demand from companies fueling the artificial intelligence (AI) boom is surging.
In a joint statement released by the two companies on Wednesday, the investment firm announced it is acquiring Aypa Power from Blackstone Energy Partners, granting Aypa an equity value of $3 billion under this deal.
The soaring demand for infrastructure required by AI data centers has enhanced the appeal of companies able to supply such needs. Specifically, data center operators are increasingly prioritizing battery systems capable of storing excess electricity, in order to minimize the risk of power outages at their facilities. At the same time, they are also using battery technology to accelerate grid connections, with some facilities coming online years ahead of schedule.
Aypa is responsible for the development, ownership, and operation of energy storage sites and hybrid renewable energy projects combining wind, solar, and storage across North America. The company currently boasts 6.5 gigawatts of operational and contracted battery capacity, with more than 20 gigawatts of projects under development. According to the statement, 95% of its portfolio capacity has power purchase agreements in place, with an average remaining contract term of 17 years. One gigawatt of capacity is roughly equivalent to the installed capacity of a conventional nuclear reactor.
The statement noted that this transaction covers Aypa’s operational, under-construction, and contracted projects, its development platform, and its team of approximately 200 professionals.
An anonymous source revealed that for Blackstone, the sale will generate an investment capital return multiple of 6.2 times.
Brookfield will complete its investment in Aypa through its Global Transition strategy, together with affiliates including Brookfield Renewable Partners. The investment firm has been consistently ramping up investments in energy suppliers, closing multiple multibillion-dollar deals over the past 18 months, including acquisitions of Canadian renewable energy developer Boralex and French peer Neoen.