Conduit Power and Gruppo AB Announce Strategic Alliance to Deliver Scalable, High-Performance Power Solutions for Datacenters and Grid Infrastructure
Conduit Power, LLC (“Conduit”), a fast-growing independent power producer specializing in distributed energy solutions, has officially announced a multi-year strategic partnership with Gruppo AB (“AB”), a global leader in power generation systems based on INNIO Jenbacher gas engine technology. This agreement marks a significant milestone in Conduit’s mission to expand reliable power access across data-intensive industries, commercial and industrial sectors, and directly to the grid, at a time when dispatchable energy is more critical than ever.
A Strategic Collaboration to Meet Growing Energy Demands
The partnership positions AB as Conduit’s primary technology supplier for the full suite of power generation projects in its growing portfolio. Under this agreement, AB will allocate a dedicated capacity of engines and system integration resources to Conduit through a long-term availability contract. This exclusive alignment ensures that Conduit can deploy new power assets at scale and speed, providing a competitive edge in industries where energy reliability is paramount—particularly data centers and artificial intelligence (AI) workloads, which are experiencing exponential growth.
Founded in 2022 with support from Grey Rock Investment Partners, Conduit Power was created to design, own, and operate both permanent and semi-permanent distributed generation infrastructure. The company initially focused on capturing and converting flared methane into onsite power at upstream oil and gas facilities. However, with the growing strain on the grid and increasing energy consumption across sectors, Conduit quickly expanded its operations to supply firm, dispatchable power directly to the electrical grid—playing a critical role in grid reliability and capacity planning.
“The grid is facing a critical shortage of dispatchable power,” said Matt Herpich, CEO of Conduit Power. “We recognized a clear opportunity to deliver a meaningful solution by aligning with an experienced and reliable technology partner like Gruppo AB. This partnership will help accelerate the development and deployment of power generation systems that are scalable, clean, and fast to market—exactly what today’s energy challenges require.”
Solving the Data Center Energy Crunch with Hybrid Power Blocks
As the digital economy grows, data centers are emerging as some of the most energy-intensive infrastructure assets in the world. With AI, cloud computing, and blockchain technologies fueling this trend, demand for power is far outpacing what traditional grid interconnection timelines can accommodate. In some regions, it may take five years or more to complete a new transmission project or substation connection. Conduit’s solution: bring the power to the data centers—faster.
To solve this problem, Conduit and AB have co-developed a modular hybrid power architecture, combining natural gas generation with battery energy storage systems (BESS). Each unit, or “block,” delivers 50 megawatts (MW) of highly reliable power and is engineered for rapid deployment. These blocks are modular by design, enabling them to be scaled up incrementally depending on the specific load requirements of the data center or industrial site.
This hybrid approach blends the advantages of baseload gas generation—firm capacity, high uptime, and cost efficiency—with the flexibility and responsiveness of battery storage. The result is a resilient and adaptive energy platform that provides both reliability and sustainability, without the delays associated with traditional grid expansion.
“Data center and AI infrastructure is now an arms race,” said Herpich. “Companies can’t afford to wait years for new transmission capacity. Our power blocks give them a proven path to energization in 18 months or less. That’s a game-changer in this market.”
AB’s Deep Expertise Enhances Project Delivery and Performance
Gruppo AB, headquartered in Italy, is a globally recognized integrator of cogeneration, trigeneration, and biogas power systems, with a strong track record of delivering high-efficiency solutions using INNIO Jenbacher engines. The company has delivered thousands of megawatts of installed capacity across Europe, Asia, and North America, serving sectors ranging from food processing and manufacturing to utilities and heavy industry.
AB’s role in the partnership extends beyond equipment supply. The company will also provide engineering support, integration capabilities, and system commissioning, ensuring that each installation meets performance, environmental, and reliability targets. With an established U.S. presence and growing footprint in North America, AB is well-positioned to support Conduit’s expanding pipeline of projects.
“We are extremely pleased to be working alongside Conduit,” said Angelo Baronchelli, President and Founder of Gruppo AB. “From the very beginning, it was clear that Conduit had the vision, technical depth, and execution capability to become a major player in the U.S. power market. Their ability to innovate and rapidly scale energy solutions made them the ideal partner for our next phase of growth in the United States.”
This sentiment was echoed by AB Energy USA General Manager Giuseppe Fiorella, who emphasized the strategic importance of the collaboration: “We are very proud to have been selected as Conduit’s main supplier for these innovative projects. This partnership represents an important step in AB’s continued expansion in the U.S. market, where we are committed to delivering energy solutions that are reliable, sustainable, and precisely tailored to the evolving needs of today’s customers.”
Addressing the Reliability Gap in the U.S. Grid
As electrification accelerates across industries—from EV charging networks to digital infrastructure and manufacturing—the U.S. grid is facing mounting pressure. In many regions, power demand is projected to double by 2030, driven by the rise of data centers, AI training clusters, and re-shoring of energy-intensive industries. At the same time, legacy fossil plants are being retired, and renewable capacity alone cannot meet peak demand due to its intermittent nature.
This creates a growing reliability gap—one that Conduit and AB aim to fill through distributed, dispatchable generation. By installing generation assets closer to the point of use, Conduit’s model reduces transmission bottlenecks and enhances local grid stability. With AB’s proven technology and global experience, these assets are optimized for uptime, low emissions, and rapid integration with utility systems.
The use of high-efficiency gas engines also supports the energy transition, as these systems are capable of running on renewable natural gas (RNG), hydrogen blends, or other alternative fuels as they become more widely available.
A Scalable Platform for Accelerated Growth
With this partnership in place, Conduit Power is well-positioned to capture a growing share of the distributed generation and data center power markets. The company plans to deploy hundreds of megawatts of capacity over the next few years, with a mix of contracted and merchant projects that leverage its flexible development model.
Meanwhile, AB is expanding its operations in the United States to support increased demand for distributed energy projects. The company is enhancing its local engineering, logistics, and support teams, as well as investing in digital tools and remote monitoring platforms that ensure peak performance across all deployed assets.
Together, Conduit and AB are laying the foundation for a new approach to power delivery—one that is faster, more reliable, and aligned with the evolving needs of a digital, electrified world.
