AES shares jumped more than 16% to US$15.33 in morning trading.

Utilities are drawing investor interest as artificial intelligence and data centres drive a surge in power demand, spurring a wave of dealmaking across the sector.

Talks between GIP and Virginia-based AES were at an advanced stage, although they could still fall through, according to the FT report.

Reuters could not immediately confirm the report.

GIP, an infrastructure investment fund, declined to comment to the Financial Times.

AES declined to comment, while GIP did not respond to a Reuters’ request for comment outside regular business hours.

AES, which surpassed Wall Street estimates for its second-quarter profit in July, has experienced significant growth in its renewables unit over the past year.

This expansion has been fueled by a global push for cleaner sources of power generation, coinciding with projections that US power consumption will reach record levels.

Shares of AES surged nearly 13% on July 8 after Bloomberg News reported that the power provider was weighing strategic options, including a potential sale, following takeover interest from several major investment firms.

BlackRock last year acquired GIP for US$12.5 billion, as part of its move to expand its footprint in infrastructure and private markets.

GIP has a track record in the utility space. In 2024, GIP and CPP Investments proposed an acquisition in US utility Allete in a US$6.2 billion take-private deal, including debt.