((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added details from paragraph 2)
U.S. utility company AES Corp AES.N said on Tuesday it would sell an indirect 30% stake in its Ohio unit to Canada’s second-largest pension fund, CDPQ, for $546 million, which will be used to support infrastructure investments.
AES Ohio said it will invest more than $1.5 billion between 2024 and 2027 to improve reliability by upgrading transmission infrastructure and modernizing the grid.
Utilities are expected to benefit from increased demand for electricity driven by AI and data centers, prompting companies and investors from all walks of life to strike deals with them.
“(Agreement with CDPQ) will support AES Ohio’s $1.5 billion capital investment program to strengthen our system and support growing data center demand, which has the potential to increase our peak load by more than 50% by the end of the decade,” AES said in a statement.
The sale, which is expected to close in the first half of 2025, builds on AES’ existing partnership with CDPQ in its Indiana unit.
The Virginia-based company has a long-term asset sales target of $3.5 billion through 2027.
Earlier this year, AES sold its Brazilian operations to power company Auren in a deal expected to net the U.S. company $640 million.
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