Behind-the-meter power generation company VoltaGrid has raised $1 billion in investment from Blackstone Tactical Opportunities and Halliburton and signed a deal to acquire its main manufacturing partner, Propell Energy Technology.

The strategic equity investment comprises a $775 million primary capital raise and a $225m secondary purchase from existing investors. According to the companies, the proceeds will fund deployment of VoltaGrid's behind-the-meter power generation solutions across data centers, microgrids, and industrial applications.

The investment builds on a previous relationship between Haliburton and VoltaGrid. In October, the two companies to develop and deploy distributed power generation systems for the global data center sector, initially with a focus on the Middle East. They followed this up in December by securing manufacturing capacity for 400MW of modular natural gas power systems for data centers across the eastern hemisphere.

Jeff Miller, president and CEO at Halliburton, said: "This investment reflects our shared focus on long-term solutions for the world's most demanding power environments, and advances VoltaGrid's ability to deliver reliable, distributed power at scale."

In addition to the direct investment, the company also announced the acquisition of Propell for an undisclosed amount. Propel is a manufacturing partner of VoltaGrid's QPac system, a high-inertia power product developed for AI data center loads. The Qpac platform is a modular natural gas power system, with each reciprocating node generating up to 20MW of power. The partners say the nodes can be combined to deliver up to 200MW of prime power under a minor source air permit. It was officially launched in January of last year.

According to VoltaGrid, the move to bring all manufacturing and engineering in-house was done to reduce execution risk across its roughly 7.5GW order book through 2030. Propel was founded in 1978 and employs more than 1,000 people across the US and Canada.

The acquisition is also expected to expedite plans for two new automated manufacturing plants at Propell's existing facilities in Granbury, Texas, targeting a combined capacity of around 300MW per month across reciprocating engines and turbines.

Nathan Ough, VoltaGrid's founder and CEO, said: "This partnership with Blackstone is a powerful endorsement of the platform we have built and the role VoltaGrid is playing in delivering the energy infrastructure of the AI era. Blackstone's scale and sector expertise make them an ideal partner as we accelerate the deployment of our behind-the-meter power solutions to meet unprecedented customer demand. The acquisition of Propell adds proven engineering and integration capabilities that will further extend our technology and operational leadership as we continue to scale."

Both transactions are expected to close in mid-2026.

The fundraise comes as VoltaGrid has been building out its data center customer base, signing a series of power supply agreements with hyperscalers and colocation operators.

In its biggest deal to date, the company signed a 2.3GW agreement with Oracle to power the cloud provider's artificial intelligence data centers. It has also inked deals with Vantage to supply 1GW of power and xAI.