BlackRock’s Global Infrastructure Partners in Talks to Acquire AES in $40 Billion-Plus Deal

BlackRock-owned Global Infrastructure Partners (GIP) is reportedly in advanced negotiations to acquire AES Corporation, a U.S.-listed utility giant. According to people familiar with the matter, the potential deal could rank among the largest ever in the American power sector. News of the talks, first revealed by the Financial Times, sent AES shares soaring nearly 17% to $15.37 — their highest closing level in almost a year.

AES, headquartered in Arlington, Virginia, carries approximately $29 billion in consolidated debt and currently holds a market capitalization of $10.94 billion. Based on these figures, analysts suggest that any acquisition would value the company at more than $40 billion. While a final agreement could be announced in the coming weeks, sources cautioned that discussions are still ongoing and could collapse before reaching completion.

The surge of investor interest in utility companies has been driven by skyrocketing power demand from artificial intelligence and data centers. This growing appetite has fueled a new wave of mergers and acquisitions across the energy sector. AES, which recently beat Wall Street’s second-quarter profit expectations, has been rapidly expanding its renewable energy division, capitalizing on the global shift toward cleaner power sources. Industry forecasts predict U.S. electricity consumption will soon hit record highs, further elevating AES’s market appeal.

BlackRock strengthened its position in infrastructure last year through a $12.5 billion acquisition of GIP. The firm already has significant experience in the utility space, including a joint $6.2 billion deal with CPP Investments to acquire U.S. utility Allete. AES, with assets across four continents and more than 36,000 megawatts of generation capacity, represents a major player in the transition to sustainable power.

Both AES and GIP declined to comment on the ongoing negotiations. Still, if completed, the deal would highlight a pivotal moment in the energy sector, underscoring how clean energy expansion and rising AI-driven demand are reshaping the global power landscape.