The energy portfolios of 20 private equity firms generate an estimated 1.5 gigatons of greenhouse gas emissions annually, ranking their combined fossil fuel footprint fifth globally behind only China, the United States, India, and Russia, according to a report released by the Private Equity Climate Risks Consortium.
Global Emissions Footprint and Asset Scale
Together, these 20 firms manage $7.3 trillion in assets across all sectors, giving them substantial leverage to influence the global transition away from fossil fuels. However, their holdings feature extensive fossil infrastructure. The Private Equity Climate Risks Consortium analysis reveals these firms own 15,000 miles of pipelines, 124 gigawatts of power generation capacity spanning 370 fossil-fuel-powered plants, and hundreds of oil and gas fields. The third edition of the scorecard expands previous scopes to map more than 1,050 fossil assets, including LNG terminals and coal facilities.
Artificial Intelligence and the Data Center Boom
Private equity’s expanding energy footprint increasingly intersects with major investments in data centers built to support artificial intelligence. Firms have emerged as the largest data center owners outside of major technology companies, backing nearly half of the top 25 US data center operators, according to Matt Parr, communications director for the Private Equity Stakeholder Project (PESP). Blackstone acquired a 19.9% stake and a seat on the board of the Northern Indiana Public Service Company (NIPSCO) in June 2024 for $2.16bn. NIPSCO subsequently announced plans to build a 2,300-megawatt natural gas power plant to serve data centers, a project expected to emit millions of tons of carbon dioxide annually. Blackstone also announced plans to invest over $25bn to support data center and energy infrastructure buildouts in Pennsylvania.
Did you know? Findings from the consortium indicate that in the United States, air pollution resulting from LNG infrastructure, coal plants, and private equity-backed extraction is associated with at least 1,000 premature deaths, 584,000 cases of asthma symptoms, and 1,400 more emergency room visits every year.
Fossil Fuel Expansion Versus Transition Goals
While public-sector retirement systems attempt to limit fossil fuel exposure, several major private equity firms increased their holdings in fossil fuel companies compared with 2024, including BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson, according to the report. EQT positions itself as a climate-conscious investor supporting the energy transition, but the firm, alongside BlackRock’s GIP and the California Public Employees’ Retirement System, could soon acquire AES Corporation. That deal would add a fleet of more than 20 coal- and gas-powered plants to their portfolios. Amanda Mendoza noted that the move appears to transition portfolios toward fossil fuels rather than away from them. Meanwhile, investments in assets like Stonepeak Infrastructure Partners’ LNG tankers—some of which have faced disruptions in the strait of Hormuz—have delivered narrow returns that barely break even overall, according to consortium findings.
Frequently Asked Questions
How large are private equity greenhouse gas emissions compared to countries?
The energy portfolios of private equity firms produce 1.5bn tons of greenhouse gases annually, placing their combined emissions fifth in the world behind China, the US, India, and Russia.
What types of fossil fuel assets do private equity firms own?
According to the Private Equity Climate Risks Consortium, firms back at least 244 energy companies operating over 250 oil and gas fields, 15,000 miles of pipelines, 35 LNG terminals, 13 coal terminals, LNG tankers, and hundreds of fossil-fuel-powered plants.
How does the AI boom affect private equity energy investments?
Private equity firms back nearly half of the top 25 US data center companies and are investing heavily in power infrastructure, including new natural gas plants, to supply electricity to data centers.
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