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American Electric Power (AEP) and Quanta Services, Inc. have announced a long-term strategic partnership to accelerate development of high-voltage transmission infrastructure and strengthen domestic power equipment manufacturing.

The collaboration includes two agreements — a Cooperation and Commitment Agreement and a Development Services Agreement — aimed at supporting AEP’s $72 billion capital investment plan for 2026–2030. The initiative focuses on expanding 765 kV transmission infrastructure, enhancing supply chain resilience, and meeting rising electricity demand from sectors such as data centers.

Under the Cooperation and Commitment Agreement, AEP and Quanta will jointly handle design, engineering, procurement, and construction of large-scale transmission projects. The partnership leverages AEP’s experience as the nation’s first and largest 765 kV operator and Quanta’s expertise in high-voltage project execution to improve cost predictability and delivery timelines.

The Development Services Agreement will expand U.S. manufacturing capacity for extra-high-voltage transformers and circuit breakers — components that are critical to grid reliability and modernization efforts.

Bill Fehrman, AEP’s chairman, president, and CEO, said the collaboration will “create a new model that strengthens execution, reduces risk and provides certainty around project development.” Duke Austin, president and CEO of Quanta Services, emphasized that the partnership “brings unmatched expertise in power delivery” to support the growing digital economy.

The partnership will support both AEP’s regulated and competitive transmission businesses, including Transource Energy, positioning the companies to deliver integrated solutions for an evolving power grid.

Source: finance.yahoo.com