Blackstone has closed Blackstone Energy Transition Partners V (BETP V), its fifth energy transition fund, at $8.7 billion, the maximum it had targeted. The firm announced the close on October 19, 2026, and says the fund, which began investing in June, is more than 50% larger than its predecessor. With that capital it has already backed power generation and transmission companies, including Spain’s Fisterra, and bought equipment makers tied to data centers and grids, including a supplier of liquid-cooling components.
Blackstone’s new energy fund in 20 seconds
- BETP V closes at $8.7 billion, up from $5.6 billion for the previous fund.
- It backs Kindle Energy, Fisterra, and Viridon for new power generation and transmission lines.
- It has bought Flow Control, which makes components for data center liquid cooling.
- The firm is also selling Aypa Power and has taken Legence public.
The previous fund, Blackstone Energy Transition Partners IV, closed in February 2025 at $5.6 billion, also at its target maximum. The jump to $8.7 billion amounts to an increase of around 55%. BETP’s strategy is to take control of energy-sector companies and generally excludes ownership and extraction of hydrocarbon reserves. Blackstone manages more than $1.3 trillion in assets in total.
Power for Ever-Growing Demand
Blackstone’s case rests on rising electricity consumption, driven in large part by data centers and artificial intelligence (AI). David Foley, global head of Blackstone Energy Transition Partners, argues there is “a generational opportunity” for investors with experience in the energy transition to meet the challenges posed by growing electricity demand. According to Foley, the fund does this by backing management teams with “flexible and patient” capital to expand manufacturing capacity, train skilled labor, and build new critical energy infrastructure.
Through BETP V, the firm has funded three platforms that will develop and operate new power generation and transmission lines. Kindle Energy is an independent power producer, Viridon describes itself as a private electric transmission company, and Fisterra is the energy platform Blackstone created in 2013 with a team led by Pedro Barriuso, former head of Iberdrola Renovables, to develop large generation projects in markets with capacity or grid shortfalls. The announcement does not break down how much money each one receives or which specific projects it will fund.
The fund has also closed three acquisitions. Flow Control Holdings makes fluid-control products in the United States for data center liquid cooling, a segment gaining weight with high-density AI servers. Dresser Utility Solutions makes meters, regulators, relief valves, and repair products for gas and water networks in North America, and DarkVision offers energy infrastructure inspection services with its own technology.
From Gas for Data Centers to IPOs
BETP V is not the only piece. Since January 2025, Blackstone’s energy transition strategy has committed more than $11 billion in new investments, including electrical equipment makers such as Maclean Power Systems, Delta Star, Power Grid Components, and Advanced Cooling Technologies, energy data analytics firm Enverus, and gas plants such as Hill Top Energy Center, Wolf Summit Energy, and Potomac Energy Center. According to DataCenterDynamics, Blackstone has also invested $5.34 billion in Williams gas projects to power data centers directly, bypassing the grid, a model known as behind-the-meter.
At the same time, the firm is cashing in gains from earlier funds. It has agreed to sell Aypa Power, a battery storage platform with a 6 GW portfolio; sold the majority of Sabre Industries, which makes infrastructure for utilities, telecoms, and data centers; and taken Legence public, a company specializing in engineering and mechanical contracting for data centers, hospitals, and commercial buildings. Blackstone says its energy strategy has delivered a net internal rate of return (IRR) of 34% since 1997, excluding exploration and production investments.
The move adds to a wave of other major asset managers seeking positions in AI’s energy supply chain, such as the BlackRock, Microsoft, and MGX fund. For Spain, Fisterra’s presence among the new fund’s platforms comes amid an ongoing debate over how to guarantee firm power for data centers, though Blackstone has not detailed which countries Fisterra will invest this capital in.
Frequently Asked Questions
How much did Blackstone’s new energy fund raise?
$8.7 billion, the targeted maximum, at the final close of Blackstone Energy Transition Partners V announced on October 19, 2026.
How much bigger is it than the previous fund?
More than 50%, according to Blackstone. The previous fund, BETP IV, closed in 2025 at $5.6 billion.
Which data-center-related companies has it acquired?
Flow Control Holdings, which makes fluid-control products for data center liquid cooling. The fund has also bought Dresser Utility Solutions and DarkVision.
What is Fisterra?
It’s an energy platform Blackstone created in 2013 with a team from Iberdrola Renovables to develop large power generation projects. It’s one of the three platforms backed by BETP V.
Sources:
- Blackstone: Blackstone Announces $8.7 Billion Final Close for Blackstone Energy Transition Partners V
- Blackstone: Final Close for Blackstone Energy Transition Partners IV at Hard Cap (2025)
- DataCenterDynamics: Blackstone closes latest energy transition fund at $8.7bn
- Private Equity Wire: Blackstone and former Iberdrola Renewables team found energy development firm
