BlackRock nears $38B AES deal to capitalize on AI power demand

BlackRock’s infrastructure fund Global Infrastructure Partners (GIP) is nearing a $38 billion deal to acquire renewable power company AES, according to the Financial Times. The acquisition would position BlackRock, the world’s largest asset manager, to capitalize on surging power demand driven by AI data centers, while representing one of the largest infrastructure takeovers in history.

What you should know: AES is a prominent U.S. utility that owns and operates power plants globally, providing energy solutions for major tech companies including Amazon, Microsoft, and Meta as they expand AI infrastructure.
• Takeover talks are in advanced stages, though the deal could still fall through.
• AES shares surged more than 15% on Wednesday following the report.
• BlackRock shares fell 2% amid broader market weakness but remain near record highs.

The big picture: This potential acquisition builds on BlackRock’s aggressive expansion into private markets and infrastructure investments.
• BlackRock completed its $12.5 billion acquisition of GIP roughly a year ago, adding $100 billion in client infrastructure assets.
• Since early 2024, BlackRock has acquired private credit manager HPS Investment Partners for $12 billion and alternatives data provider Preqin for $3.2 billion.
• GIP’s existing portfolio includes London’s Gatwick Airport, major energy pipelines, and more than 40 data centers.

Why this matters: CEO Larry Fink has identified infrastructure as one of the fastest-growing segments of private markets, driven partly by data center buildout.
• “By 2040, the global demand for new infrastructure investment is $68 trillion,” Fink said in his 2025 annual letter to investors.
• “To put that price tag in perspective, it’s roughly the equivalent of building the entire Interstate Highway System and the Transcontinental Railroad, start to finish, every six weeks—for the next 15 years.”

Strategic positioning: The acquisition would diversify BlackRock’s revenue streams beyond its traditional ETF business while tapping into AI-driven power demand.
• Companies supporting surging power demand have seen significant financial gains, with GE Vernova stock up 83% year-to-date.
• AES has been underperforming in 2025 prior to Wednesday’s surge, potentially making it an attractive acquisition target.
• “One of the strongest long-term themes in the market is power generation,” said Jeff Marks, director of portfolio analysis for the CNBC Investing Club.