More than $500 million in capital is being invested into next-generation data center infrastructure by ArcLight Capital Partners and DigitalBridge Group, who are backing Takanock – an emerging power infrastructure startup aiming to solve one of the most critical constraints in hyperscale data center expansion: power availability.
This sizable commitment underscores the urgency and scale of the challenge, particularly in Tier I markets like Northern Virginia and Phoenix, where power constraints are threatening to stall the growth of the digital economy’s backbone.
Founded in 2023, Takanock has positioned itself at the nexus of power infrastructure and digital infrastructure. The company was launched to design and deploy scalable energy solutions that enable faster data center deployment by bypassing the bottlenecks of traditional utility timelines. This initiative is being led by Kenneth Davies, a recognized veteran in energy innovation who previously launched Google Energy and directed Microsoft’s global renewable energy strategy.
Kenneth Davies argues that the convergence of energy and digital expertise is no longer optional, but essential. “Meeting the compute demands of hyperscalers requires a fully integrated approach to energy deployment,” he said. “Our model provides faster time-to-power while easing pressure on public utilities, and with the backing of ArcLight and DigitalBridge, we can scale quickly in the areas that need it most.”
Adaptive On-Site Power Generation
Takanock’s technology model is built on adaptive on-site power generation that can act as primary power until permanent grid connections are in place. The company offers modular systems that eliminate the delays associated with new substations or long-term utility infrastructure upgrades. Unlike traditional generation projects, Takanock’s approach avoids dependency on pipeline capacity or inflexible supply contracts, enabling more resilient and mobile deployment in grid-constrained markets.
DigitalBridge, which manages more than $80 billion in digital infrastructure assets globally, views Takanock as a bridge between the energy and compute sectors. “Power is the new currency in digital infrastructure,” said Jon Mauck, Senior Managing Director and Head of Data Centers at DigitalBridge. “Takanock’s model gives operators a viable alternative in markets where capacity is tight and growing tighter.”
Sustainability is a central feature of Takanock’s value proposition. The company’s systems support the integration of customer-owned renewable resources, while also enhancing overall grid flexibility. Advanced emission control systems and closed-loop cooling are deployed to reduce environmental impact and safeguard local water supplies – key considerations for hyperscalers seeking to maintain ESG benchmarks while expanding capacity.
Private Equity
ArcLight, an energy-focused private equity firm with more than $28 billion in capital raised since inception, brings deep experience in the utility sector to the table. “Grid power is becoming increasingly uncertain in both cost and availability,” said Jake Erhard, Partner at ArcLight. “Takanock’s approach is purpose-built for today’s environment – quick to deploy, scalable, and responsive to sustainability mandates.”
Since the beginning of 2024, Takanock has moved quickly to secure strategic real estate and deployment opportunities. The company is currently executing projects in Phoenix and Northern Virginia, two of the country’s most critical data center hubs. These long-term deployments are under contract and represent a key validation of the startup’s hybrid energy approach.
Financial advisory for the transaction was provided by Houlihan Lokey, while Simpson Thacher & Bartlett served as legal counsel for DigitalBridge.
With power emerging as a defining constraint in global data infrastructure planning, Takanock’s hybrid solution appears to offer a timely path forward. Backed by experienced investors and led by a team fluent in both data and energy, the company is betting that solving power pain points is the next big unlock in cloud-scale growth.
