Ardian buys Irish utility Energia in bet on AI boom

Oct 6 (Reuters) - French investment firm Ardian is acquiring one of Ireland's largest energy utilities Energia Group from I Squared Capital, the companies said in a statement on Monday, in a bet on a power supplier poised to serve the booming AI industry.

The deal will value Energia at over 2.5 billion euros ($2.93 billion), the Financial Times, which first reported the deal, said citing people familiar with the matter. The companies did not disclose the financial details of the transaction.

I Squared Capital acquired the company in 2016 for 1 billion euros.

The deal underscores surging investor interest in data centres that cater to the booming market for AI tools and power their growing adoption across the globe.

Ireland in particular has become a global hub for data centres and new technology, which grid operator EirGrid predicts will account for 31% of the country's electricity demand by 2030, up from around 20% today.

“Ireland is at a pivotal point, with rapid electrification, growing demand from new technologies, and global investment in digital infrastructure," Ian Thom, CEO of Energia, said in a statement.

Ardian managing director William Briggs said the Irish utility was well placed to benefit from that trend.

“Energia is at the forefront of the convergence between energy utilities and digital infrastructure," he said in a statement.

Energia also said on Monday it has agreed to partner in the development of a 165-megawatt data centre in Dublin, without disclosing any further details.

Energia owns and operates wind farms and gas-fired power plants in Ireland capable of generating around 17% of the country's total electricity demand.

($1 = 0.8540 euros)