The Canada Pension Plan Investment Board has agreed to invest US$1 billion in infrastructure-investment firm Arclight through subsidiary AlphaGen.

Pending approval of the transaction, CPPIB will hold a minority position in AlphaGen.

AlphaGen is one of the largest independent-power producers in the U.S., holding about 11 gigawatts of assets located in markets across the country.

Power has become a “bottleneck” in the evolving growth of a AI, creating more need for greater reliability, capacity and “time to power,” the partners said in a news release. Arclight and AlphaGen are well-positioned to meet the growing demand, particularly in fast-growing markets like Pennsylvania and other parts of the PJM Interconnection market, which is an east area of the U.S. power grid, according to the companies.

Pictured: Arclight-owned hydroelectric facility in New England.

Photo: Cohere