Summary:
1. ArcLight Capital Partners and DigitalBridge Group are investing over $500 million in Takanock, a startup focused on solving power constraints in data center expansion.
2. Takanock offers adaptive on-site power generation solutions to enable faster data center deployment and reduce reliance on traditional utility timelines.
3. The company’s sustainable approach, backed by experienced investors, aims to address power challenges in key data center hubs like Northern Virginia and Phoenix.
Article:
In a move signaling a major shift in the data center infrastructure landscape, ArcLight Capital Partners and DigitalBridge Group are injecting more than $500 million into Takanock, an emerging power infrastructure startup. Takanock aims to tackle one of the most pressing issues facing hyperscale data center expansion: power availability. With Tier I markets like Northern Virginia and Phoenix facing power constraints that could impede the growth of the digital economy, the investment in Takanock underscores the urgency and scale of the challenge.
Founded in 2023, Takanock has positioned itself at the intersection of power infrastructure and digital infrastructure. The company, led by energy innovation veteran Kenneth Davies, focuses on designing and deploying scalable energy solutions that bypass traditional utility timelines, enabling faster data center deployment. Davies emphasizes the importance of integrating energy and digital expertise in meeting the compute demands of hyperscalers, highlighting the need for a fully integrated approach to energy deployment.
Takanock’s technology model revolves around adaptive on-site power generation, offering modular systems that can serve as primary power until permanent grid connections are established. This approach eliminates the delays associated with traditional utility infrastructure upgrades and enables more resilient deployment in grid-constrained markets. The company’s commitment to sustainability is evident in its support for customer-owned renewable resources and advanced emission control systems, aligning with hyperscalers’ ESG benchmarks.
With DigitalBridge managing over $80 billion in digital infrastructure assets globally, Takanock is seen as a bridge between the energy and compute sectors. Jon Mauck, Senior Managing Director at DigitalBridge, describes power as the new currency in digital infrastructure, emphasizing the value of Takanock’s model in markets where capacity is scarce. ArcLight’s deep experience in the utility sector further bolsters Takanock’s position as a purpose-built solution for the evolving power landscape.
As Takanock moves forward with strategic real estate acquisitions and project deployments in critical data center hubs like Phoenix and Northern Virginia, the startup’s hybrid energy approach is gaining traction. With power constraints emerging as a defining factor in global data infrastructure planning, Takanock’s timely solution, supported by experienced investors, is poised to unlock new opportunities for cloud-scale growth.
