TLDR: BlackRock’s Global Infrastructure Partners (GIP) is reportedly in advanced discussions to acquire utility group AES Corp for approximately $38 billion, including debt. This significant deal, highlighted by the Financial Times, is driven by growing investor interest in power companies, fueled by the escalating energy demands of the artificial intelligence and data center sectors. AES has been exploring strategic options since July 2025, attracting interest due to its substantial renewable energy assets and pipeline.
BlackRock-owned Global Infrastructure Partners (GIP) is reportedly on the verge of a monumental acquisition, nearing a deal valued at approximately $38 billion, inclusive of debt, to take over the utility group AES Corp. The news, first reported by the Financial Times on October 2, 2025, underscores a burgeoning trend of investor interest in power companies, largely propelled by the insatiable energy requirements of the rapidly expanding artificial intelligence (AI) and data center industries.
AES Corp, a prominent player in clean power, has been actively exploring strategic alternatives for its business since July 2025, following a period of attracted takeover interest. The company’s stock saw a significant surge, climbing 16.8% on Wednesday to close at $15.37 per share, as investors reacted positively to the acquisition reports. This interest stems from AES’s substantial renewable assets, which were reportedly undervalued, making them a prime target for infrastructure investors like GIP and previously, Brookfield Asset Management Ltd.
AES Corp is deeply involved in renewable power supply and development, smart grid infrastructure, digital solutions, green hydrogen, and electric vehicle (EV) adoption. The company boasts over 30 GW in operation, a backlog of more than 12 GW in signed long-term power offtake agreements, and an impressive pipeline of approximately 65 GW. Notably, in May 2025, AES secured a deal to supply 650 MW of solar power to Meta’s data centers in the U.S., highlighting its direct relevance to the tech sector’s energy needs.
BlackRock’s strategic move to acquire AES is aimed at capitalizing on the booming energy demand driven by the artificial intelligence sector. This potential acquisition follows BlackRock’s successful completion of its own acquisition of Global Infrastructure Partners on October 1, 2024. This combination created an industry leader in infrastructure, managing approximately $170 billion in assets under management (AUM) and a global team of 600 professionals. Laurence D. Fink, BlackRock Chairman and CEO, stated at the time that “Infrastructure represents a generational investment opportunity,” and that the combined entity was “well positioned to capitalize on the long-term structural trends that will continue to drive the growth of infrastructure.”
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While the deal is reportedly nearing finalization this week, it is not yet guaranteed. Analysts estimate AES’s intrinsic value at $20.38 per share, nearly double its July 2025 stock price of $11.07, despite concerns about its $40.68 billion enterprise value and a 351% debt-to-equity ratio. A leveraged buyout could potentially refinance AES’s debt using low-cost green bonds or tax equity partnerships, leveraging tax credits from the Inflation Reduction Act (IRA) to reduce project costs by 15-20%.
