American Electric, Quanta Services announce partnership

American Electric Power (AEP) announced long-term strategic agreements with Quanta Services (PWR) designed to position AEP to execute on its announced $72B capital plan including delivery of high-voltage transmission, while enhancing supply chain resilience and expanding development capabilities to serve customers, including the rapidly growing data center market. The collaboration includes a Cooperation and Commitment Agreement for transmission projects, and a Development Services Agreement for large transformer and breaker manufacturing. Together, these efforts position AEP and Quanta to deliver greater efficiency, constructability and certainty in meeting the energy needs of customers today and in the future. Under the Cooperation and Commitment Agreement, AEP and Quanta will collaborate on the design, engineering, procurement and construction of 765 kV and other high-voltage transmission facilities. The partnership agreement combines AEP’s deep operational and development expertise, gained by being the first and the largest 765 kV operator in the United States, with Quanta’s proven track record of large-scale project execution as the most experienced 765 kV constructor in the United States, improving cost predictability, enhancing delivery certainty and providing a proven operational structure. AEP and Quanta will leverage the strength of this partnership to bring the benefits of 765 kV transmission to AEP’s traditional operating footprint as well as surrounding markets. In addition, AEP and Quanta have executed a Development Services Agreement to expand domestic manufacturing capacity for extra-high-voltage transformers and circuit breakers. This initiative represents a significant investment in power equipment manufacturing in the United States and will strengthen the domestic supply chain and ensure reliable access to critical grid components.