USA Trends and Developments Contributed by: Elena Rubinov, George Casey, Heiko Schiwek, Vinita Sithapathy, Pierre-Emmanuel Perais and Clara Pang, Linklaters LLP
data centres that demand more than 100 MW of new electrical capacity, along with their essential support- ing infrastructure such as high-voltage transmission lines and energy equipment. The order instructs the secretary of commerce to establish an initiative that offers financial assistance including loans, grants and tax incentives for eligible projects, and simultaneously revokes a prior executive order from the prior admin- istration that had set out certain processes for the construction and operation of data centres and clean energy facilities on federal land. The order purports to maintain economic growth and facilitate US expan- sion of AI and related technologies. Given the limitations in infrastructure and the stream- lined access to constructing and operating AI-related technology discussed above, the rise of AI has trig- gered the development of large infrastructure deals as well as smaller ventures seeking to develop innovative renewables technologies. In late October 2025, Meta announced that it had formed a joint venture with Blue Owl Capital to fund and develop its data centre in Lou- isiana, wherein Blue Owl would own 80% of the joint venture and Meta would keep a 20% stake and man- age the data centre. Additionally, in early November, OpenAI signed a deal to buy USD38 billion’s worth of capacity from Amazon Web Services to expand its services and build additional infrastructure for the company, while hinting at a break from its reliance on Microsoft as it indicates an interest in going public. The rapid expansion of data centres (which power AI applications) requires reliable, cost-effective access to power. Limitations to current infrastructure, including power grids, has prompted much of the development of early-stage companies in the energy and infrastruc- ture sector. This is bolstered by the fact that many hyperscalers (cloud service providers that operate massive data centres to power AI services) have com- mitted themselves to renewable sources rather than conventional fossil fuels, opening up new avenues for investment. Based on recent projections, US demand for elec- tricity is estimated to need to expand by as much as 25% between 2025 and 2030, and much of this demand will need to be addressed with new power grid capacity. This surge is driven by AI-fuelled elec-
tricity demand, with data centres projected to make up over 8% of electricity demand by 2035. The rise in electricity demand has already had palpable effects on the 2025 markets, as renewables saw a 10.5% increase in deal volume and a 384.6% rise in deal value compared to H2 2024. Grid Modernisation The surge in energy demand due to increased reliance on electrical infrastructure and data centres is out- pacing the growth of renewable energy, which mainly replaces retiring fossil fuel sources. Significant invest- ments are under way to modernise and harden the grid, including transmission lines, underground infra- structure, and smart systems. Sustained investment alongside regulatory streamlining is being pursued as a path towards energy security in the USA. For companies seeking to capitalise on the AI-pow- ered increases in electricity demand, the acquisition of transmission and generation assets can create strategic advantages. This trend has already had vis- ible impacts in 2025, where the utilities sector saw a 133.5% increase in deal value when compared to 2024. This jump illustrates how companies are moving to integrate vertically to ensure a stable power supply to meet increases in digital and electricity demands. Energy Transition Political uncertainty has influenced the global energy sector in M&A despite record highs of clean energy- related deals in 2023 and 2024. North America has seen renewed interest in fossil power generation, while Europe continues to invest heavily in sustain- able energy, notably in decarbonisation. Although in the United States federal support of clean energy has not been prioritised under the current administration, individual states are implementing clean energy man- dates and climate-friendly legislation. Solar power and battery storage saw unprecedented expansion in 2024, with solar capacity reaching 220 GW and battery storage nearly doubling to 29 GW. These technologies now dominate new power genera- tion additions. Wind energy growth has slowed due to supply chain and permitting issues, while geothermal is gaining
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