AES Corp Shows How Utilities Are Evolving Into AI-Driven Infrastructure Assets

AES Corp shares surged over 14% in premarket trading on Wednesday, October 1, 2025, following reports that BlackRock’s Global Infrastructure Partners is nearing a $38 billion acquisition of the utility company. The stock jumped to $15.01 in early trading at approximately 7:37 AM EDT, representing an 11.03% increase from Tuesday’s close of $13.16. The potential deal, which includes debt, would mark one of the largest infrastructure takeovers in recent history and comes as investors anticipate increased power demand from the expanding artificial intelligence and data center sectors.

AES’s Strategic Value in BlackRock’s Acquisition Plans

According to reports from Reuters via the Financial Times and Bloomberg News, Global Infrastructure Partners (GIP), which BlackRock acquired in 2024, is in advanced negotiations to purchase AES Corp. The deal values the Virginia-based utility company at approximately $38 billion including its $29 billion in debt, while AES’s equity market capitalization stood at $9.4 billion at Tuesday’s close. Sources familiar with the matter, who requested anonymity due to the private nature of discussions, indicated that negotiations are well advanced, though the deal could still face delays or potentially collapse.

AES has been exploring strategic options since July 2025, when Bloomberg News reported the company was considering a possible sale following takeover interest from several prominent infrastructure investment firms. The company’s renewable energy division has experienced substantial growth, driven by the global transition toward cleaner power sources. The rising demand for electricity, particularly from AI expansion and data centers, has made utilities increasingly attractive targets for strategic acquisitions, prompting both companies and investors to pursue deals within the sector.

AES Stock’s Turnaround After a Difficult Year

Prior to the acquisition news, AES stock had been under pressure, declining more than 30% over the past year as investors cooled on the company’s renewable energy focus. The stock closed at $13.16 on Tuesday, September 30, 2025, within its 52-week range of $9.46 to $20.30. Despite the year-long decline of 34.98%, the stock had gained 2.25% year-to-date before Wednesday’s surge. The company’s market capitalization stands at $9.37 billion, with an average daily trading volume of 8.92 million shares and a price-to-earnings ratio of 9.36.

AES Corporation, together with its subsidiaries, operates as a power generation and utility company in the United States and 13 other countries internationally. The company owns and operates power plants to generate and sell power to utilities, industrial users, and other intermediaries, while also distributing and transmitting electricity to end-users across residential, commercial, industrial, and governmental sectors. In July 2025, AES exceeded Wall Street’s profit expectations for the second quarter, demonstrating the financial strength that likely attracted BlackRock’s interest. GIP has established experience in the utilities sector, having partnered with CPP Investments to acquire U.S. utility Allete in a $6.2 billion take-private deal in 2024.

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