CPP Investments Invests US$1.0 Billion to Acquire Stake in AlphaGen

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Chris Young of the Canadian Press reports CPP Investments invests US$1 billion in US power producer AlphaGen:

TORONTO - The Canada Pension Plan Investment Board has signed a deal to invest US$1 billion for a minority position in AlphaGen, which owns power plants in the U.S.

Bill Rogers, head of sustainable energies at CPP Investments, says AlphaGen provides efficient, reliable power in some of the most high-demand U.S. markets. 

AlphaGen owns and or operates 23 generation facilities across the U.S.

It is a partnership formed and owned by an affiliate of ArcLight Capital Partners.

Rogers says partnering with ArcLight, a highly experienced investor in power markets, positions CPP Investments well to support AlphaGen’s strong operational performance.

The deal is subject to regulatory approvals and is expected to close in the first half of 2026.

Earlier today Arclight announced a US$1.0 billion investment by CPP Investments in AlphaGen: 

BOSTON and TORONTO – October 2, 2025 – ArcLight Capital Partners (ArcLight) today announced that Canada Pension Plan Investment Board (CPP Investments) has entered into a definitive agreement to invest US$1.0 billion for a strategic minority position in AlphaGen.  AlphaGen is one of the largest independent power portfolios in the U.S., with over 11 GWs of critical power assets located in strategic markets across the country.

As power has become the bottleneck to the rapidly evolving growth of AI, the need for critical infrastructure that can provide capacity, reliability, and “time to power” in a sustainable way is increasingly important.  ArcLight and the AlphaGen portfolio are well positioned to help meet this need in fast growing markets like Pennsylvania, Ohio and other parts of the PJM Interconnection market, investing in existing and building new infrastructure to provide accelerated power solutions to the market.

“AlphaGen provides efficient, reliable power in some of the most high-demand U.S. markets. As demand for electricity accelerates, these assets will play a vital role in balancing renewable growth with the need for reliable supply,” said Bill Rogers, Head of Sustainable Energies, CPP Investments. “Partnering with ArcLight, a highly experienced investor in  power markets, positions us well to support AlphaGen’s strong operational performance to deliver sustainable, long-term value for the CPP Fund.”

“ArcLight is excited to partner with another leading global investor – CPP Investments – in AlphaGen. We look forward to working with the CPP Investments team to drive additional growth in the platform, and deliver on the reliability and capacity needs of AI and electrification power demand growth in North America,” said Angelo Acconcia, President of ArcLight.  “AlphaGen, led by Curt Morgan, has a track record of strong operating performance that distinguishes the platform in the market,” said Andrew Brannan, Managing Director at ArcLight.

CPP Investments continues to invest to support the global economy’s energy transition, providing long-term capital to a global portfolio of assets across the energy spectrum including power generation, midstream, renewables, and conventional energy.

ArcLight has been investing and building power infrastructure since 2001, and has owned, controlled or operated over ~70 GW of assets and 47,000 miles of electric and gas transmission infrastructure representing approximately $80 billion of enterprise value. With its deep expertise and dedicated internal technical, commercial and development teams, ArcLight believes it is uniquely positioned to deliver customized, large-scale power infrastructure solutions to support AI and data center demand.

The investment is subject to regulatory approvals and is expected to close in the first half of 2026.

About ArcLight

ArcLight is a leading infrastructure investor which has been investing in critical electrification infrastructure since its founding in 2001. ArcLight has owned, controlled or operated over ~65 GW of assets and 47,000 miles of electric and gas transmission and storage infrastructure representing $80 billion of enterprise value. ArcLight has a long and proven history of value-added investing across its core investment sectors including power, hydro, solar, wind, battery storage, electric transmission and natural gas transmission and storage infrastructure to support the growing need for power, reliability, security, and sustainability. ArcLight’s team employs an operationally intensive investment approach that benefits from its dedicated in-house strategic, technical, operational, and commercial specialists, as well as the firm’s ~2,000-person asset management partner. For more information, please visit www.arclight.com. References to “ArcLight” herein refers to ArcLight Capital Partners, LLC and/or its managed investment vehicles, as the context requires.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2025, the Fund totalled C$731.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About AlphaGen

AlphaGen is a strategic partnership formed and owned by an affiliate of ArcLight to own and operate critical power infrastructure to help provide reliable, secure, safe, and sustainable sources of power and meet the growing infrastructure needs created by electrification.  AlphaGen is led by a deeply experienced senior management team with a proven track record of strategic, operational, and commercial expertise to help create value and manage risk.  For more information, please visit www.alphagen.com.

This is another huge deal for CPP Investments in the energy space.

Recall, CPP Investments recently acquired a US$3 billion stake in Sempra Infrastructure Partners because LNG infrastructure is central to meeting rising global demand and supporting long-term transition goals.

With this deal, CPP investments is partnering up with ArcLight, a well-known firm in the electric and gas transmission and storage infrastructure to capitalize on the growing need for energy to power data centers.

Also recall in his speech on Monday at the Canadian Club Toronto, CPP Investments' CEO John Graham alluded to two areas they are looking to invest in nation-building projects:

  • large scale infrastructure and 
  • energy systems

He specifically said they are "financing infrastructure of the future – like Cambridge’s new data centre."

Well, they're financing data centers all over the world, including  in Australia where last year they teamed up with Blackstone to acquire AirTrunk in A$24bn deal.

Notice how John Graham stated they're not chasing US stocks higher in his discussion with Rita Trichur, signalling things are looking bubbly in the US stock market where concentration risk still reigns.

While that's true, CPP Investments is still invested in US equities (probably neutral weight) and it's definitely playing the AI theme in private markets through digital infrastructure and energy/ power-related deals like this one with AlphaGen.

$US3 billion here, a US$1 billion there, pretty soon you're talking about real money.

Why is CPP Investments doing these AI deals in private markets instead of playing AI roulette on the US stock market?

My rhetorical question answers the question, it's all about finding the best risk-adjusted returns to play the AI theme -- and right now, it ain't in US stocks which will likely continue to soar higher before coming to a screeching halt:

So, yes the AI theme is still garnering all the attention but things are definitely frothy in US equities and there are smarter ways to play it in private markets (you will not make a killing but realize a safe rate-of-return unless something blows up the entire AI ecosystem).

Alright, let me wrap it up there.

Below, an older 2021 panel discussion featuring Dan Revers, Managing Partner and Founder at ArcLight. I chose this clip for a reason, take the time to watch it and learn a lot about the energy needs of the US and how they will support clean energy going forward.

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