USA Law and Practice Contributed by: Elena Rubinov, George Casey, Heiko Schiwek, Vinita Sithapathy, Pierre-Emmanuel Perais and Clara Pang, Linklaters LLP
1. Market Trends 1.1 Energy and Infrastructure M&A Market The US energy and infrastructure (E&I) sector has followed the general US market through overall decreased M&A activity levels this year due to inter- est rate uncertainty, geopolitical tensions, tariffs, trade restrictions, and a shifting regulatory landscape. Q2 of 2025 saw the fewest deals since Q3 2019. Nevertheless, infrastructure assets’ long-term returns and higher barriers to entry continue to make them rel- atively resilient to inflation and attractive to investors. Increases in energy and digital infrastructure demand, the proliferation of data centres, and upgrades in elec- trical grids and key infrastructure shield this sector from extreme market fluctuations. Despite the slower market, the E&I landscape has seen growth through large-scale transactions and investments in digital infrastructure, renewables, fos- sil fuels, and energy security, including Constellation’s USD26.6 billion acquisition of Calpine creating the largest clean energy provider in the US, and ALLETE, Inc’s USD6.2 billion acquisition by Canada Pension Plan Investment Board and Global Infrastructure Par- ties, expected to bring reliable electric utilities to Min- nesota. Although oil and gas deals declined this year, deal value increased compared to 2024, mainly due to a few mega deals. State and companies’ sustainability commitments drive investments in energy transition and the devel- opment of new renewables technologies in the face of recent executive actions that ease permitting pro- cesses for fossil fuel projects. 1.2 Energy and Infrastructure Trends The sector is focused on generative AI, with compa- nies now branding themselves as “AI-driven”. The AI boom has boosted data centre activity and is driving the rising energy demand, with power usage expect- ed to increase 25% between 2025 and 2030, creat- ing investment opportunities in conventional energy sources and new renewable technologies. The renewables industry has seen a rise of early-stage companies. Heightened energy demand has created a
gap between existing technologies and cost-effective energy sources. Many hyperscalers have committed to carbon-zero policies and seek reliance on renew- able energy sources. The administration’s new policies have reshaped the E&I M&A landscape, particularly the energy sec- tor. The federal government is prioritising domestic fossil fuels and streamlining approvals for related projects, making oil, gas, hydroelectric and nuclear assets attractive to investors. This has accelerated deal timelines, encouraging consolidation and capital deployment in traditional energy infrastructure. Fur- ther, the Inflation Reduction Act (IRA) renewables tax incentives imposed by the “One Big Beautiful Bill Act” (the “OBBB”) as of July 2025, restrictions on solar panel imports and permitting freezes for onshore and offshore wind projects have cooled investor enthusi- asm for clean energy deals in the longer term, while increasing short-term interest in developing these projects before the rollback of IRA tax credits takes effect. This is particularly true for the US offshore wind market, with the administration implementing policies halting development, including stop-work orders for projects mid-construction. This has led to a pivot in M&A activity, with buyers reassessing valuations, renegotiating deal terms, and looking toward fossil- heavy portfolios. 1.3 Access to the Energy and Infrastructure M&A Market Strategic buyers outpace financial sponsor buyers in the number of E&I deals, reflecting a preference for smaller strategic deals over large-scale projects. How- ever, the rising number of high-ticket deals this past year demonstrates that companies and investors are adapting to policy uncertainties while capitalising on emerging opportunities. 1.4 Energy and Infrastructure Projects The US has seen an increase in E&I M&A value compared to 2024, due to a few large-scale deals, including T-Mobile and KKR’s joint venture to acquire MetroNet for USD9.8 billion and Brookfield’s USD9.1 billion acquisition of Shell’s Colonial Enterprises. Most recently, a consortium of investors including MGX and BlackRock signed a deal to purchase Aligned Data
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