Summary
- Partners Group has completed a majority investment in AVK, originally announced in August 2026 with initial backing exceeding $1 billion.
- AVK plans to expand its Energy as a Service model, financing and operating on-site generating infrastructure for data centre customers.
- The company reports a development pipeline exceeding 2GW, but this is not equivalent to installed or commissioned generating capacity.
AVK has confirmed completion of Partners Group’s majority investment in the UK-based critical power infrastructure business, providing financial backing for its expansion into on-site electricity generation for data centres across Britain and Europe.
The investment was originally announced on 6 August 2026 and included an initial commitment exceeding US$1 billion. AVK confirmed completion on 4 November, alongside the appointment of former UK energy minister Claire Perry O’Neill as chair of its board.
The company intends to expand AVK Capital, a business established to finance, own, and operate power systems installed at customer sites. Under its Energy as a Service model, a data centre developer can obtain electricity through a contractual agreement without purchasing the generating assets outright.
AVK reports a pipeline of more than 2GW associated with this model, supported by a workforce of over 400 people across ten UK and European hubs. The pipeline represents potential developments rather than installed or commissioned generating capacity.
The commercial proposition addresses a financing and delivery challenge. Data centre developers can face substantial expenditure on buildings, electricity distribution, cooling, networking, and technical systems before sufficient grid capacity is available for the proposed computing equipment.
Financed on-site generation may change how developers allocate that expenditure. Instead of funding all the generating equipment themselves, customers enter a supply agreement with an infrastructure provider that retains ownership and responsibility for the relevant assets.
Changing the allocation of capital
AVK’s Energy as a Service arrangements are intended to provide electricity through power purchase agreements. The specific price, duration, and allocation of commercial risks will depend on the contracts agreed for individual projects.
Removing generating equipment from a developer’s upfront capital expenditure does not eliminate its economic cost. The infrastructure owner must recover construction, financing, operating, maintenance, and other expenditure through its contractual arrangements.
The relative attractiveness of that model depends on the alternatives available to the customer. A site with an established electricity connection may have different requirements from a campus waiting for substantial network reinforcement.
Local generation can provide an additional source of electricity, but its availability depends on the generating technology and the supporting fuel or energy supply. Equipment intended for continuous operation may face different requirements from standby generators used primarily during testing or emergencies.
Planning permission, environmental conditions, fuel logistics, and electrical protection all influence whether on-site generation can deliver the intended capacity. Generating equipment cannot automatically be operated at any location merely because it is available for installation.
Where several electricity sources are combined, controls must coordinate the power supplied by generators, batteries, and the utility connection. The design must also account for faults, maintenance, switching arrangements, and safe operation of the electrical system.
These requirements are especially relevant where the generating plant is expected to support computing workloads before the full utility connection is available. The site must maintain suitable electricity quality and continuity for the equipment it serves.
Grid constraints and operating commitments
AVK has previously reported energising a large data centre microgrid for Pure DC in Dublin. That installation provides an existing operating reference, although the investment completion does not identify an additional commissioned site.
Microgrids can combine on-site generation, storage, and grid supply, but the contribution of each element depends on the actual system architecture. An installation may provide operational flexibility without removing every requirement for an electricity network connection.
AVK also operates modular manufacturing facilities at Haydock in England. Standardising equipment can support repeatable delivery processes, although installation and commissioning still require site-specific engineering and compliance with local conditions.
The completed investment provides capital for AVK to pursue projects on a larger scale. It does not establish that the entire reported 2GW pipeline is financed, contracted, or ready to be connected to operating data centres.
Claire Perry O’Neill’s appointment adds experience in energy policy and financial markets to the company’s board. She previously served as UK Minister of State for Energy and Clean Growth and was designated president of the COP26 climate conference.
AVK chief executive Ben Pritchard will continue leading the company as it expands its power infrastructure and financing activities.
The transaction gives AVK access to additional investment backing for its proposed delivery model. The eventual contribution to European data centre capacity will depend on projects securing customers, completing their generating infrastructure, obtaining the necessary permissions, and entering commercial operation.
