• CEO has over 20 years of experience in energy sector
• Stark Power acquired Sagebrush Infrastructure Partners for USD 50m
• Midwest campus planning reuses “old industry” grid, water and fiber for hyperscale data center loads

Rising grid and interconnection costs are pushing smaller power developers to sell projects earlier into the AI data center boom, Stark Power CEO Michael Avidan said in an interview following the company’s recent acquisition of Sagebrush Infrastructure Partners.

The USD 50m deal adds five US data center campuses across the Midwest totaling 5.6 GW of planned capacity with on-site natural gas generation to Stark’s portfolio.

“Everything has gotten more expensive, but hyper competitive. … The stakes are getting higher all over the board,” Avidan said.

As a result of those higher costs and risks, early-stage developers secure prime real estate and interconnection positions, then bring in larger investors to take projects to the next phase.

That’s where the acquisition of Sagebrush made the most sense for Stark Power.

“I give the team at Sagebrush Infrastructure Partners a lot of credit – they were strategic in that regard,” Avidan said. “They realized that they were facing developing milestones that require additional capital, and they were strategic in the way they were going to secure that capital.”

Stark Power develops energy infrastructure for large-scale data centers, including co-located power solutions that pair generation with campuses to address grid constraints. It raised approximately USD 45m in an April 2026 Israeli institutional investor equity round, with additional warrant rounds adding up to USD 140m in total potential commitments.

Midwest focus

Another aspect of Sagebrush’s strategic planning was choosing the Midwest for its projects.

Avidan said the combination of legacy “old industry” transmission, access to water and fiber, relatively favorable permitting and, perhaps most importantly, grid capacity left behind as heavy industry has moved or shut down now makes parts of the Midwest attractive for large data center loads.

While he wouldn’t disclose specifics, the CEO said some of the Sagebrush and now Stark Power projects are located right next to high-voltage transmission, and that the company plans to concentrate its near-term growth in the region.

“We are a company that is growing quickly, but we think that there’s value in being focused and being strategic, and, so I think for the time being chances are that we’ll stick with Midwest,” he said.

Avidan has worked in the energy sector for nearly 20 years, starting his career in power at Pacific Gas and Electric (PG&E) and holding leading roles at companies including Recurrent Energy and Enlight before taking over as Stark Power CEO in March 2026.

He attended business school to work in power and renewables, and was fascinated by the power space, “both the aspects of large amounts of capital, technology and innovation – really the ability to also provide a key public good,” he said.

“There is no living on this planet without power, and increasingly it’s more about power than it is about fuel, right?” Avidan continued. “So, I wanted to make something that makes a difference, but still be business oriented, and became interested in power and what it means for human society.”

Looking ahead, Avidan expects the denser and smaller footprint of AI-driven demand to continue pushing smaller developers to sell projects to bigger investors. He also expects to see increased implementation of new technologies, including advanced nuclear, geothermal, batteries and possibly fusion.

And he pointed to AI-driven robotics as a way to improve both construction and maintenance at power plants, helping lower costs and boost performance.

“I’m seeing improvements in performance, courtesy of AI advancements, and the ability to pull information and best practices within seconds from all over the globe. …I couldn’t be more excited about things to come,” he said.