A proposed $33.4 billion acquisition of AES by BlackRock’s Global Infrastructure Partners, Swedish private equity firm EQT and other investors is facing political opposition in the United States as lawmakers raise concerns about electricity costs and the growing influence of data centers on power infrastructure. The transaction comes as US electricity demand reaches record levels, increasing the strategic importance of utilities and the networks required to support new industrial and technology loads.

Lawmakers Challenge the Public-Interest Case

A bipartisan group of US lawmakers, including Senator Elizabeth Warren, has asked the Federal Energy Regulatory Commission to reject the transaction. In a letter dated September 28, the lawmakers argued that the acquisition could fail the public-interest test because it could increase energy costs for households and businesses.

The proposed transaction would take publicly traded AES private, while its regulated utilities, including AES Indiana and AES Ohio, would continue operating under state regulation. The lawmakers nevertheless argue that private-equity ownership could create incentives to pursue higher returns that could ultimately place additional pressure on utility customers.

The concerns are particularly significant because AES operates infrastructure that provides essential electricity services. Any change in ownership structure therefore has implications beyond shareholders, extending to regulators, businesses and households that depend on the company’s regulated utilities.

Data Center Demand Adds a New Layer of Risk

The debate is unfolding as data centers drive a rapid increase in US electricity demand. Artificial intelligence infrastructure and other energy-intensive computing facilities are creating substantial new requirements for generation and grid capacity, prompting a wave of power-sector mergers and acquisitions.

Lawmakers have raised concerns that BlackRock’s ownership interests in both power infrastructure and data centers could create potential conflicts. They argue that utility investments could be directed toward infrastructure that primarily benefits affiliated data centers, while other customers could potentially bear part of the associated costs through electricity rates.

This issue reflects a broader structural change in the US energy market. Data centers require large amounts of reliable electricity, while utilities need significant capital to expand generation, transmission and distribution networks. The growing connection between technology infrastructure and regulated power assets is therefore creating new questions about how costs and investment benefits should be allocated.

AES Defends the Transaction as a Source of Capital

AES has said the acquisition is not expected to affect customer rates at its regulated utilities. The company also stated that transaction costs, including any acquisition premium and related expenses, would not be borne by utility ratepayers in Indiana and Ohio.

AES has further argued that the transaction would improve its access to capital for investment in critical grid infrastructure. The argument highlights the central economic issue surrounding the deal: utilities require substantial financing to meet rapidly rising electricity demand, while regulators must determine how that investment should be funded and who should ultimately bear the associated costs.

For investors in Israel and global markets, the AES transaction illustrates the growing intersection between private capital, regulated utilities and artificial intelligence-driven electricity demand. The deal remains subject to Federal Energy Regulatory Commission approval after receiving shareholder approval and regulatory clearance in Ohio. The parties expect the transaction to close in late 2026 or early 2027, subject to remaining approvals. How regulators address ownership, rate protection and data center-related infrastructure spending could influence the structure of future power-sector transactions as electricity demand continues to expand.