National Grid Ventures has agreed to invest $1.75 billion for a 35% stake in Joulent, valuing the Engine No. 1-backed energy platform at $5 billion, to accelerate its multi gigawatt “Across the Meter” power projects for AI data centers and industrial loads.
Joulent has secured a $1.75 billion strategic minority investment from National Grid Ventures (NGV), the commercial arm of National Grid plc, for a 35% stake. This values the company at approximately $5 billion. The deal positions National Grid as a key partner in Joulent’s platform for delivering large scale, contracted power infrastructure tailored to AI data centers and other high demand industrial loads. It bolsters Joulent’s execution on its flagship Project Kilby and broader pipeline while integrating National Grid’s expertise in high voltage networks, system integration, supply chain, and project finance.
What is Joulent?
Joulent, founded and developed over three years by Engine No. 1 (led by Chris James), launched publicly in June 2026 as a technology driven energy company focused on multi gigawatt baseload power solutions. It collaborates closely with GE Vernova for gas turbines and electrical equipment, and Energy Forge (a Chevron Power Solutions subsidiary) for natural gas expertise and project development.
Joulent’s “Across the Meter™” model develops co-located, modular power generation (primarily natural gas fired with storage and advanced controls) directly serving customer loads like data centers. This approach provides firm, dispatchable power with high reliability and speed, minimizing strain on existing grids initially while enabling future exportable capacity. It supports phased build-outs, cost competitiveness, and eventual grid integration alongside renewables like solar.
The strategy addresses the explosive power demand from AI and compute intensive industries without relying solely on overburdened regional grids or passing costs to ratepayers. Joulent acts as an operating platform that assembles capital, supply chain, technology, and execution expertise from partners.
The Flagship Project: Kilby
Project Kilby in West Texas (Reeves County, Permian Basin) is the cornerstone. It involves a ~2.67 GW natural gas fired power facility co-located with a Microsoft-operated AI data center campus. Energy Forge (Chevron) and Joulent jointly develop it, with Joulent holding a formalized 50% ownership interest post investment.
- A 20 year power purchase agreement (PPA) with Microsoft underpins revenue stability.
- Power delivery is slated to begin in late 2028, with full build-out extending into the 2030s via a phased, modular approach.
- The site spans over 2,000 acres, leveraging Chevron’s local natural gas production from the Permian Basin for fuel supply.
- Estimated total project capital is in the $7–9 billion range, combining power generation, data center elements, and supporting infrastructure.
Kilby serves as the replicable template for Joulent’s multi project platform, demonstrating “behind the meter” reliability that can later export power to support local markets.
Strategic Implications of the National Grid Investment
The $1.75B infusion (for 35% equity) provides substantial capital for Kilby execution, pipeline advancement, team scaling, and capability building. National Grid contributes operational expertise in large scale infrastructure, high voltage equipment access, and balancing, critical for avoiding supply chain bottlenecks and accelerating timelines.
This expands Joulent’s ecosystem alongside GE Vernova (turbines, electrification) and Chevron (gas, commercial/financial input). It diversifies National Grid’s exposure into the high growth U.S. large load market with contracted, long duration cash flows, while giving Joulent a major utility scale partner.
The $5B post money valuation reflects confidence in Joulent’s first mover positioning, secured offtake, and scalable model in a market where power availability is a primary constraint for AI expansion.
U.S. data center power demand, driven by AI training and inference, is surging far beyond traditional grid planning. Hyperscalers like Microsoft require gigawatt scale, reliable, low latency power that utility scale grids struggle to deliver quickly. Joulent’s co-located model bypasses many permitting and interconnection delays, using abundant U.S. natural gas as a bridge fuel while incorporating storage and future renewables.
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Texas, with its deregulated market, Permian gas resources, and business friendly environment, is an ideal hub. The investment aligns with broader policy tailwinds favoring American energy abundance and reindustrialization.
Beyond Kilby, Joulent is positioned to replicate the model across multiple sites for various hyperscalers and industrial customers, creating a high margin, contracted revenue base with upside from capacity exports and optimizations via proprietary energy software.
Risks and Challenges
- Execution: Delivering multi-GW projects on aggressive timelines involves complex construction, regulatory approvals (even for behind the meter), and supply chain coordination for turbines and equipment.
- Fuel and emissions: Reliance on natural gas exposes the platform to gas price volatility, though Permian advantages and long term PPAs mitigate this. Transition to higher renewables will be key for long term sustainability.
- Competition: Other players are pursuing similar co-location strategies; Joulent’s edge lies in its integrated partnerships and proven team.
- Interconnection and policy: Future grid exports depend on transmission upgrades and evolving regulations.
- Macro: Interest rates, inflation on capital costs, and shifts in AI demand growth could impact economics.
The National Grid investment validates Joulent’s model as a high impact solution for the AI power bottleneck. By combining Engine No. 1’s venture building expertise, GE Vernova’s technology, Chevron’s energy assets, and now National Grid’s infrastructure prowess, Joulent is well equipped to scale a repeatable platform that delivers reliable power at speed and scale. Project Kilby de-risks the approach with secured Microsoft demand and positions the company for significant expansion in a multi trillion dollar opportunity tied to U.S. technological leadership. This partnership strengthens Joulent’s ability to execute while offering partners diversified, attractive risk adjusted returns in critical infrastructure.
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