A consortium of investors including BlackRock’s Global Infrastructure Partners and investment group EQT agreed to acquire AES for $10.7 billion as the AI data center buildout fuels surging demand for power generation.

Utility and power-generation companies like AES are gaining increasing attention as AI’s vast energy needs place heavy burdens on power grids. “There is a need for significant investments in new capacity in electricity generation, transmission and distribution,” said Bayo Ogunlesi, chief executive of BlackRock’s Global Infrastructure Partners.

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AES said the sale will provide it with necessary capital that it previously lacked to expand its U.S. energy generation.

“AES has a significant need for capital to support growth beyond 2027, particularly given the significant new investments in both U.S. generation and utilities businesses,” said AES Chairman Jay Morse. “In the absence of a transaction with the consortium, the company would likely require a plan that includes reduction or elimination of the dividend and/or substantial new equity issuances.”

The consortium also includes the California Public Employees’ Retirement System and the Qatar Investment Authority.

The investors will pay $15 a share, representing a 40% premium to the 30-day volume-weighted average share price before July 8 last year, the last full day of trading prior to the first media report of a potential acquisition.

The stock had seen a run-up following media reports of a potential deal and closed Friday at $17.28.

Shares sank 17% to $14.41 in premarket trading Monday.

The transaction is expected to close in late 2026 or early 2027.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

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