USA Trends and Developments Contributed by: Elena Rubinov, George Casey, Heiko Schiwek, Vinita Sithapathy, Pierre-Emmanuel Perais and Clara Pang, Linklaters LLP
Introduction In the past 12 months, large-scale corporate deals in the US energy and infrastructure sector, represent- ing a significant growth in value from previous years, presented a positive contrast to the still-recovering broader M&A market. Changes in the political and regulatory landscape have also bolstered deals in the fossil fuel industry, while the rise of AI has triggered an increased demand for electricity that is spurring new developments in the renewables sector. Macro Environment and Institutional Investor Participation – Market Developments Despite headwinds such as geopolitical uncertainty, high financing costs, elevated interest rates and regu- latory changes, energy and infrastructure M&A has been driven by increased interest and demand in elec- trification, energy security and digital infrastructure. Even though the total volume of deals in the industry was lower over the course of this year, the total value of deals in the United States increased when com- pared to 2024. This increase was driven by large-scale corporate transactions and focused project finance investments. As of Q3 2025 in the United States, the top five deals in the energy and infrastructure sec- tor were responsible for 22.7% of the aggregate deal value of USD166.17 billion across the sector. The rise in high-ticket deals in energy and infrastruc- ture exemplifies how companies are developing meth- ods to hedge against political change while investing in nascent technologies. The majority of deals, both in volume and value, were led by strategic buyers, reflecting a preference for targeted, strategically sig- nificant deals that increase consolidation. A key exam- ple of this strategic recalibration is Sunoco’s recent acquisition of Parkland Corporation, which consoli- dated distribution systems and achieved midstream integration by leveraging operational synergies. This focus on vertical integration illustrates the industry’s desire for both efficient consolidation and innovation. Companies’ approaches to M&A have differed across the sector. For oil and gas companies, the trend is moving towards upstream consolidation aiming to control domestic reserves and solidify long-term sup- ply as part of their efforts to capitalise on the Trump administration’s fossil fuel-friendly policies. Analysts
believe today’s market is in a matured phase, reflect- ing consolidation among the major players. Conse- quently, companies have shifted towards optimising synergies; addressing environmental, social and gov- ernance pressures; and adapting to increases in the demand for electricity. For the mining and utilities sector, many companies have moved for strategic consolidations and divesti- tures in an effort to unlock value and free resources to invest in the new wave of renewable technologies. Overall trends suggest that financial investors are seeking to develop diversified, future-ready portfoli- os by increasing their exposure throughout the value chain. The current administration’s broad repeal of clean energy incentives was projected to slow down deals in the renewables sector. However, acquisitions in the renewables sector (mainly in solar and battery stor- age) have continued in volume and increased in value, reflecting companies’ efforts to both align their port- folios with local and state-level, rather than federal, decarbonisation programmes and reduce reliance on government incentives. Tariffs have had a limited impact on the energy and infrastructure industry in comparison to others in the market, generally amounting only to minor effects on the cost of building materials and rare earth minerals. Artificial Intelligence in the Energy and Infrastructure Sector The rise of AI has fundamentally affected the energy and infrastructure sector, through growing energy demands for data centres and the push for new infra- structure including grid upgrades, on-site generation, and battery storage. The current regulatory landscape has also tilted in favour of expanding AI’s reach across the US, provid- ing a friendly environment for energy and infrastruc- ture transactions that are necessary or beneficial for this goal. On 23 July 2025, President Trump signed an executive order to expedite federal permitting processes for data centre infrastructure that sup- ports AI development. This executive order reduces federal regulatory obstacles to the construction of AI
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