NGP Energy Capital Management has committed $200m to back Liminal Energy, a newly launched US battery storage developer, as surging electricity demand from data centres puts pressure on ageing power grids, according to Bloomberg.

Liminal Energy, founded by former UBS Asset Management executives Ken-Ichi Hino and Mark Saunders, plans to deploy utility-scale battery projects of varying sizes and structures. The business aims to address grid reliability challenges caused by extreme weather, ageing infrastructure, and the rapid expansion of artificial intelligence workloads.

NGP said it had spent three years searching for the right team to back in energy storage, marking a further shift by the firm towards power and energy transition investments alongside its legacy oil and gas exposure.

Batteries can help stabilise grids by storing excess power and releasing it during periods of peak demand or system stress. Hino said demand growth driven by data centres represents “real tailwinds”, with storage assets able to reduce volatility and accelerate grid connections.

The investment highlights how private equity is positioning itself at the intersection of AI infrastructure and power markets, as utilities and developers race to secure capacity to meet rapidly rising demand.

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