Ardian Acquires Ireland’s Energia in €2.5B Bet on AI Power Demand

In a major move underscoring the convergence of energy infrastructure and artificial intelligence, French private equity firm Ardian has agreed to acquire Irish utility Energia Group from U.S.-based I Squared Capital in a deal valued at more than €2.5 billion. The acquisition marks Ardian’s first investment in Ireland and signals growing investor appetite for utilities positioned to power the next generation of AI and data-driven industries.

Energia, one of Ireland’s largest energy providers, serves nearly 900,000 homes and businesses across the island and accounts for roughly 17% of Ireland’s total electricity supply and 20% of its wind generation. The company, originally acquired by I Squared for €1 billion in 2016, has become a central player in Ireland’s renewable transition and is now at the forefront of supplying sustainable power to digital infrastructure, including AI-intensive data centers.

The deal reflects Ardian’s broader strategy to expand its European infrastructure portfolio, particularly in sectors bridging clean energy and digital transformation. The firm, which also holds stakes in Germany’s EWE and London’s Heathrow Airport, described Energia as well-positioned to deliver low-carbon, reliable energy for Ireland’s growing digital economy.

The investment will fund a multibillion-euro capital expenditure program aimed at expanding renewable capacity and improving the efficiency of Ireland’s flexible generation assets. The focus remains on transforming Ireland’s energy system by deploying renewables and other low-carbon solutions at scale, with Ardian’s long-term backing expected to accelerate Energia’s role in meeting the country’s rising energy and data demands.

€87M Data Center in Dublin

The timing of the acquisition aligns with the surge in energy consumption driven by AI infrastructure expansion. Energia recently secured approval to construct an €87 million data center at its Huntstown Power Station in Dublin in partnership with Microsoft, a project that exemplifies how utilities are increasingly becoming direct enablers of the AI economy.

For I Squared Capital, the sale represents its largest divestment to date and a strong return on its original investment. During its nearly decade-long ownership, the firm invested in reducing Energia’s debt and expanding its renewable portfolio while taking a €540 million dividend.

The transaction, expected to close in the first quarter of 2026 pending regulatory approvals, highlights the growing intersection between energy infrastructure, AI, and sustainability – with Ardian positioning itself as a key backer of the power systems set to fuel Europe’s next technological revolution.