Partners Group has agreed to acquire a controlling stake in U.K.-based AVK Power Solutions, betting that the rapid expansion of AI-driven data centers across Europe will fuel long-term demand for critical power infrastructure.

The private markets firm said in a press release that it expects to invest more than $1 billion of equity in AVK, with additional financing provided through debt. AVK’s management team will retain a minority ownership stake.

AVK designs, builds and maintains power infrastructure for data centers, including backup generation systems, modular electrical units and behind-the-meter microgrids. The company also develops systems capable of operating on lower-carbon fuels such as biogas, biofuel and hydrogen.

Partners Group plans to expand AVK beyond equipment installation by growing its Energy-as-a-Service business, allowing the company to develop, own and operate power assets while securing long-term contracts with data center operators and other customers.

Nicholas Pepper, Managing Director, Infrastructure, Partners Group, says: “AI is driving one of the largest infrastructure buildouts in decades, and access to power is becoming a defining constraint. This constraint and lengthening connection queues are critical bottlenecks to growth in the European data center market, which on-site generation can alleviate by accelerating speed-to-power. AVK, with its deep expertise, track record, and pan-European footprint, is well-positioned to address this issue as a one-stop shop for data center power solutions.”

Ben Pritchard, Chief Executive Officer, AVK, commented: "Speed-to-power is now a defining opportunity for European data center operators. Our new partnership with Partners Group will allow us to meet our customers exactly where the market demands. From the moment we launched our first microgrid, we recognized the challenge and the opportunity facing developers and operators globally. By adding capital to our power solutions portfolio, we can turn speed-to-power from an ambition into action."

Partners Group is investing in its fourth direct infrastructure program, which closed with more than $15 billion in commitments. Financial terms beyond the equity investment were not disclosed.

According to the company, AVK has completed more than 20,000 projects and deployed roughly 3.5 gigawatts of power capacity across Europe’s largest data center markets, including Frankfurt, London, Amsterdam, Paris and Dublin. It also has a pipeline of more than 2 gigawatts of behind-the-meter power projects across the region.

The firm has more than $40 billion in total assets under management across its infrastructure business. 

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