January 6, 2025 – Fortress Investment Group announces that funds managed by its affiliates have acquired assets of APR Energy, comprising 30 mobile gas-powered turbines and related balance-of-plant inventory with a combined energy generation capacity of 850 megawatts. The turbines are immediately available for deployment.
In conjunction with the acquisition, Fortress has signed an agreement with Duos Energy Corporation, a company led by APR Energy’s prior executive management team, to assist in overseeing the management and deployment of the assets.
“Energy infrastructure is an increasingly precious commodity – and is particularly critical for the build-out of datacenters needed to advance AI applications,” said Josh Pack, Co-CEO and Managing Partner at Fortress. “Acquiring these turbines allows us to offer almost immediately available energy capacity which, alongside our existing real estate financing and development capabilities, is a compelling proposition for customers seeking rapidly available datacenter infrastructure.”
“Many datacenter customers are focused on co-located renewable energy generation for the long-term, and that strategy is creating increasing demand for bridge- and supplemental-energy generation in the near-term,” added Bob Warden, Managing Director at Fortress. “We expect demand for power to exceed supply for at least a decade, making high-capacity mobile generators a potentially ideal solution as renewable energy generation and additional grid infrastructure are built."
Fortress is actively working on data center projects globally with a range of tenants, including hyper-scalers, as well as developers.
Figure 1: Data center inventory by market (Source: CBRE Research1)
Figure 2: Data center net absorption by market (Source: CBRE Research1)
“Our experience in sale-leaseback – including build-to-suit – has been developed over more than two decades of helping our counterparties fulfill their real estate asset and capital structure needs,” added Ahsan Aijaz, Managing Director at Fortress. “With this energy generation portfolio, we’re able to offer our counterparties customized financing with the additional benefit of surety of energy supply."
In the US, growth in commercial demand for electricity is concentrated in a handful of states experiencing rapid development of large-scale computing facilities such as data centers2. At the same time, capacity issues – a longstanding challenge caused by underinvestment in generation assets and the grid – are being exacerbated in the near-term by new challenges stemming from the shift to renewables.
Fortress affiliates have signed a two-year Asset Management Agreement with Duos Energy Corporation, an operating subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT), to deploy and operate the fleet of mobile gas turbines and balance-of-plant inventory. Duos is already in active discussions regarding deployment to developers of immediate-demand power projects, including US-based data center developers and other international projects.
“Mobile gas turbines can be particularly valuable for customers needing Behind-the-Meter (BTM) power solutions as the assets can be deployed in a matter of weeks,” said Chuck Ferry, CEO of Duos Technologies Group. “This offers a significant advantage over traditional utility power or new generation assets that can incur a 24-month or longer manufacturing timeline.”
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $49 billion of assets under management as of September 30, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. For more information, please visit www.fortress.com.
About Duos Energy Corporation
Duos Energy Corporation, a subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT), focuses on developing, owning, and operating sustainable energy projects to power Edge Data Centers and critical infrastructure industrial facilities across the United States. Specializing in clean-burning natural gas generation and green technologies, the company offers rapid deployment of dedicated off-grid power plants. With extensive industry experience, Duos Energy is dedicated to providing fast-track, reliable, and eco-friendly energy solutions that support mission-critical operations. For more information, visit www.duosenergycorp.com.
Footnotes
1. Source: CBRE. Global Data Center Trends 2024. Published June 24, 2024. Retrieved January 3, 2025.
2. Source: US Energy Information Administration. Commercial electricity demand grew fastest in states with rapid computing facility growth - U.S. Energy Information Administration (EIA). Published June 28, 2024. Retrieved January 3, 2025.