Advent acquires $1B stake in LayerZero to power the AI data center boom

Private equity firm Advent International is making a billion-dollar bet on the infrastructure behind AI. Advent announced on Monday that it’s acquiring a majority stake in LayerZero Power Systems, a company based in Aurora, Ohio, that builds critical power equipment for data centers. A source familiar with the deal told Reuters the stake is valued at around $1 billion.

As more companies lean into artificial intelligence and high-performance computing, the demand for data centers has exploded. But what’s often overlooked is the infrastructure that keeps those centers running. That’s where LayerZero comes in.

The company manufactures power distribution units, remote power panels, and static transfer switches — hardware that ensures electricity flows reliably and safely through massive computing facilities. It may not sound flashy, but it’s foundational to keeping servers online and AI models humming.

“As data centers evolve to support the growing needs of AI and high-performance computing, our role has become even more important,” said LayerZero co-founder Milind Bhanoo.

Private Equity Giant Advent Bets Big on Data Center Power with $1B LayerZero Deal

Advent’s latest move comes as private equity deal flow starts to rebound, following a stretch of hesitation driven by tariffs and global uncertainty. With investor appetite returning, firms are jumping back into the market.

The firm appears to be accelerating its pace. Earlier this month, Advent International made headlines with its $6 billion takeover of UK-based precision instruments maker Spectris, Reuters reported.

Founded in 2001 by Bhanoo and Galm, LayerZero builds high-reliability power equipment for data centers that can’t afford downtime. As cloud adoption grows and AI workloads push the limits of power-hungry GPUs, demand for LayerZero’s gear has taken off. The shift toward more power-dense hardware is accelerating that growth.

After the deal closes, Advent will team up with LayerZero’s founders and leadership, who will retain minority stakes and continue in their roles at the company. Annette Clayton, a former CEO of Schneider Electric North America and now an operating partner at Advent, will step in as Chair after the deal closes.

Advent plans to help LayerZero scale manufacturing, expand its customer base, and boost service offerings — a move that lines up with the broader rush to build out data center infrastructure amid the AI arms race.