Chief executive urges Canadian unity as CPP targets large-scale energy and infrastructure projects at home
ArcLight Capital Partners has announced that Canada Pension Plan Investment Board (CPP Investments) will invest US$1.bn for a strategic minority position in AlphaGen.
AlphaGen operates over 11 gigawatts of power assets in the United States, with facilities located in key markets across the country.
ArcLight and AlphaGen are focusing on the need for critical infrastructure to address the increasing demand for power, particularly as artificial intelligence drives growth in markets such as Pennsylvania, Ohio, and other regions within the PJM Interconnection.
The companies are investing in both existing and new infrastructure to provide accelerated power solutions.
Bill Rogers, head of Sustainable Energies at CPP Investments, said AlphaGen “provides efficient, reliable power in some of the most high-demand US markets.” He added that as electricity demand increases, these assets will contribute to balancing renewable growth with the need for consistent supply.
Rogers also noted the partnership with ArcLight, describing it as an experienced investor in power markets, and highlighted support for AlphaGen’s operational performance.
Angelo Acconcia, president of ArcLight, commented on the partnership with CPP Investments and the intention to address reliability and capacity needs related to AI and electrification power demand growth in North America.
Andrew Brannan, managing director at ArcLight, referenced AlphaGen’s operating performance under Curt Morgan’s leadership.
CPP Investments continues to allocate capital to support the energy transition, investing across the energy spectrum, including power generation, midstream, renewables, and conventional energy.
ArcLight has invested in and operated over 70 gigawatts of assets and 47,000 miles of electric and gas transmission infrastructure, representing approximately $80bn in enterprise value.
ArcLight’s internal teams focus on delivering large-scale power infrastructure solutions to support AI and data centre demand. The investment is subject to regulatory approvals and is expected to close in the first half of 2026.
In a separate development, John Graham, chief executive of CPP Investments, discussed the fund’s approach to infrastructure and energy projects in Canada.
Financial Post reported that Graham indicated that the fund is interested in large-scale projects that offer scale, stability, predictability, and transparency.
He highlighted the importance of institutional investors having control over sustainable long-term returns and pointed to investments in existing infrastructure with expansion potential, such as Trans Mountain Corp. and Wolf Midstream Inc.
Graham noted that approximately 12 per cent of the CPP fund is invested in Canada.
He referenced the creation of the Canada Pension Plan Investment Board in 1997 as an example of political cooperation for long-term national interests.
Graham also mentioned several Canadian investments, including Highway 407, A&W, Dollarama, Shopify, Canadian Natural Resources, and a data centre in Cambridge, Ontario.
Graham expressed that the fund is not currently pursuing US public equities due to concerns about concentration in technology companies but continues to invest in the United States overall, citing the size and depth of the US market.
He emphasized the need for unity and coordination among Canadian governments to attract capital for nation-building projects, such as upgrading and expanding ports, rail lines, pipelines, carbon capture and storage, and wind energy capacity.
