Power Moves, published in association with Dentons, assesses the current North American energy transition M&A market. It features insights from 70 North American financial sponsors and 30 North American corporates that have invested at least US$5 million in renewable and/or conventional energy infrastructure M&A over the past 24 months.

Key findings include:

• Overwhelming optimism for energy transition M&A. A clear majority of respondents (60%) anticipate an increase in M&A activity within the energy transition space over the next 24 months, with nearly one in five (18%) expecting a significant surge.
• Emerging technologies are the primary M&A catalyst. The drive for innovation is paramount, with a majority of respondents (58%) identifying emerging technologies as one of the top drivers for their organization’s M&A activity in the energy transition arena for the coming two years.
• Energy storage leads as most transformative force. Underscoring the critical need for grid stability and renewable integration, 74% of all respondents expect energy storage technologies to be the most transformative force in energy infrastructure development in the near term.
• Divergent deal structures for sponsors and corporates. Our survey indicates that financial sponsors have unanimously pursued and plan to continue pursuing minority stakes, allowing for portfolio diversification. Conversely, 100% of corporate respondents have focused on and will continue to target majority stakes, underscoring their drive for control and operational synergy.
• Data centers: A nexus of investment and intense energy demand. The AI boom is profoundly impacting the energy sector, with data centers at its core. An overwhelming consensus exists across all respondents that data centers are placing substantial and increasing pressure on energy demand, and investment will naturally continue to follow.