The Carlyle Group Inc. (NasdaqGS:CG) is exploring a sale of power producer Cogentrix Energy (Cogentrix Energy Power Management, LLC), one of the largest owners of power plants in the US, as a wave of deals for utilities accelerates because of soaring energy demands from digital networks. The private capital group has hired advisers to explore a sale that could value Cogentrix at as much as $3 billion-$4 billion, generating a large windfall for Carlyle?s infrastructure arm, said three people briefed on the matter. It was also selling other power assets owned by its infrastructure business in separate processes, the people said.

Investment bank Lazard (Lazard Inc.) and law firm Latham & Watkins (Latham & Watkins LLP) had been hired to advise on the sale, said people briefed about the matter. Carlyle and Lazard declined to comment. Latham did not immediately respond to requests for comment.

Investment bankers and lawyers say investors are increasingly looking to buy and invest in power plants, which generate electricity that is later sold to utilities. That wave of deal making has been in part spurred by speculation that data centres and digital infrastructure used to power artificial intelligence will spark an unprecedented demand for power, straining the energy supply.