Business Context and Reporting Period
This Form 6-K filing by National Grid plc, dated July 1, 2026, announces a strategic investment by its commercial arm, National Grid Ventures (NGV), into Joulent LLC. The transaction involves a $1.75 billion investment to secure a 35% interest in Joulent, a platform developing integrated power solutions for US large load customers, particularly those driven by artificial intelligence (AI) and data centers.
Key Financial Metrics and Transaction Details
- Investment Amount: $1.75 billion.
- Ownership Stake: 35% interest in Joulent LLC.
- Flagship Project (Project Kilby): A 2.67 GW co-located power facility in West Texas developed in a 50/50 partnership with Chevron Corporation.
- Off-taker: Microsoft-operated data center campus under a 20-year power purchase agreement.
- Target First Power Delivery: 2028.
- Expected Cash Flow: Joulent is projected to be free cash flow positive from the early 2030s.
- Funding Source: National Grid's existing balance sheet headroom.
- Impact on Capital Program: Incremental to the existing five-year capital investment program of at least £70 billion by FY31.
Material Changes and Strategic Shifts
The filing highlights a strategic expansion into the US large load power market, diversifying National Grid's regional US exposure beyond its traditional regulated utility operations. The investment targets the rapidly growing demand for reliable, scaled power required by the AI-driven economy. Unlike standard utility projects, this venture focuses on "Across-the-Meter" grid connections and co-located generation to accelerate speed-to-power without shifting costs to local communities.
Guidance, Outlook, and Risks
Management Commentary: CEO Zoë Yujnovich described the investment as "disciplined" and "partner-led," aimed at gaining exposure to a major source of electricity demand growth with attractive risk-adjusted returns exceeding regulated returns. The partnership is expected to strengthen National Grid's existing data center connection program, targeting over 10GW of data center demand across the UK and US over the next five years.
Financial Framework: The transaction is not expected to affect the Group's current five-year financial framework or its strong investment-grade credit rating. The Final Investment Decision is expected by the end of 2026.
Risks and Contingencies: The filing includes extensive forward-looking statements subject to significant uncertainty. Key risks include regulatory changes in the UK and US, construction delays, environmental and climate-related liabilities, network failures, IT system breaches, and the ability of counterparties (such as Microsoft and Chevron) to perform their obligations. The company notes that actual results may differ materially from projections due to factors beyond its control.
Investor Verification Checklist
- Confirm the Final Investment Decision timeline (expected end of 2026) and any conditions precedent.
- Verify the specific terms of the 20-year power purchase agreement with Microsoft for Project Kilby.
- Assess the impact of the $1.75 billion outlay on National Grid's leverage ratios and credit rating outlook.
- Monitor the progress of Project Kilby's equipment procurement (GE Vernova turbines) and EPC capacity reservations.
- Review the detailed risk factors in the Annual Report and Accounts for the year ended March 31, 2026, referenced in the cautionary statement.