AIP Invests In Silicon Ranch To Boost Clean Energy

AIP Management has executed its second significant renewable platform investment, this time on the rapidly growing U.S. clean energy space through a strategic alliance with Silicon Ranch, which is one of the United States' top independent power producers (IPPs). This transaction demonstrates AIP's long-term investment in sustainable infrastructure and reflects increased investor interest in large-scale renewable energy platforms amidst the current energy transition.

Silicon Ranch, headquartered in the United States, operates with a unique community-first model and currently boasts 3.6 gigawatts (GW) of operating capacity. The company aims to exceed 10 GW of operational capacity by 2030, supported by an ambitious 12 GW development pipeline and strong long-term power purchase agreements (PPAs). With U.S. electricity demand expected to grow as artificial intelligence, data centers, and industrial growth at home increase, Silicon Ranch's growth strategy is highly complementary to industry trends.

This investment aligns with our approach of collaborating with the best infrastructure platforms," noted Kasper Hansen, CEO and Managing Partner of AIP Management. "Silicon Ranch is a leader in IPPs, and it has deep local knowledge, a deeply ingrained presence in the communities it serves, and an all-in approach to delivering clean power at scale. An investment in it underscores our belief in companies that have robust fundamentals and the potential to lead the transition in the energy sector.

Silicon Ranch's pipeline for growth mirrors its forceful move to grow. It now has 3.7 GW under development or under contract, and its 12 GW of near- and midterm developments. Its in-service goal of more than 10 GW at the close of the decade represents a quantum leap towards achieving its vision to become a driving force behind decarbonizing the U.S. power industry.

The company's vertically integrated structure—alongside its customer-facing strategy and internal engineering, procurement, and construction (EPC) capability—is a strong differentiator for Silicon Ranch. With these assets, Silicon Ranch can obtain premium site locations, produce projects economically, and achieve long-term power purchase agreements (PPAs), now averaging 21 years with high-quality offtakers.

"Silicon Ranch is excited to welcome AIP as our new strategic partner," said Reagan Farr, President and CEO of Silicon Ranch. We're looking forward to welcoming their deep knowledge of long-term infrastructure investing and understanding of our industry to our shareholder roll. With AIP's backing and that of our other shareholders, Silicon Ranch is positioned well to implement our growth strategy as we work alongside our diverse group of customers to bring much-needed energy infrastructure, all while enabling American communities to grow stronger, healthier, and more resilient.

The timing of the investment is imperative. With demand for clean electricity increasing as a result of digital infrastructure and manufacturing reshoring, access to adequate land for renewable schemes becomes progressively limited. Silicon Ranch's ownership model, focusing on long-term control, creates a strategic benefit in such a setting. The model secures the ability to re-power and re-contract facilities in the future, serving the firm's long-term viability.

The investment also reflects AIP's confidence in the durability and resilience of the U.S. renewable energy market. With a disciplined investment process and emphasis on quality assets, AIP continues to find opportunities that return stable, long-term results regardless of market volatility. This latest transaction not only further strengthens AIP's presence in the global clean energy transformation but also brings coveted European infrastructure capital to the American market.

Silicon Ranch's investor base now consists of energy giant Shell, Manulife Investment Management, TD Asset Management, which just boosted its holdings, and now AIP Management. The addition of AIP adds important infrastructure experience and further diversifies the investor base supporting Silicon Ranch. The deal is now pending standard regulatory approvals.

As the U.S. steps up efforts to streamline environmental reviews and speed up clean energy and infrastructure projects, investments like AIP's in Silicon Ranch reflect a broader market shift. It signals the strategic importance of aligning capital with clean energy innovation, infrastructure readiness, and local community empowerment to meet future energy demands.