Brookfield Asset Management Ltd (NYSE: BAM) has agreed to acquire battery storage developer Aypa Power for $7 billion, including debt. This move comes as demand surges from companies fueling the artificial intelligence boom.

A joint statement released by the two firms on Wednesday noted that the investment company is purchasing Aypa Power from Blackstone Energy Transition Partners. The transaction assigns an equity value of $3 billion to Aypa.

The skyrocketing demand for infrastructure to power AI data centers is increasing the appeal of companies with the necessary supply capabilities. Specifically, data center operators are placing greater importance on battery systems that can store excess electricity to minimize the risk of outages at their facilities.

They are also leveraging battery technology to accelerate the grid connection process, allowing some facilities to commence operations years ahead of schedule.

Aypa is responsible for the development, ownership, and operation of energy storage sites and hybrid renewable energy projects combining wind, solar, and storage across North America. The company currently has 6.5 gigawatts of battery capacity in operation or under contract, with over 20 gigawatts more in development.

According to the statement, 95% of the capacity in its portfolio is covered by offtake agreements, with an average remaining contract term of 17 years. One gigawatt of capacity is roughly equivalent to the output of a traditional nuclear reactor.

The transaction encompasses Aypa's operational, under construction, and contracted projects, its development platform, and its team of approximately 200 professionals. A person familiar with the matter, speaking anonymously, revealed that the sale will yield Blackstone a return multiple of 6.2 times its invested capital.

Brookfield will complete the investment in Aypa through its Global Transition Fund, in partnership with affiliates including Brookfield Renewable Partners. The investment firm has been consistently increasing its stakes in energy suppliers, having closed several multi-billion dollar deals over the past 18 months, including acquisitions of Canadian renewable energy developer Boralex and its French counterpart Neoen.