(Reuters) – Electricity firm Carlyle has hired consultants to explore a sale to Cogentrix, which could value the North Carolina power maker at $3 billion to $4 billion, the Financial Times reported, citing three people briefed on the matter.
Carlyle is also selling other energy assets owned by its infrastructure business in separate processes, according to a report released Friday.
Interest in utilities is growing as technological innovations such as artificial intelligence and data centers increase demand for electricity.
Investment bank Lazard (NYSE:) and law firm Latham & Watkins have been hired to advise on the sale, the FT reports.
Carlyle and Latham & Watkins did not immediately respond to Reuters requests for comment, and Lazard declined to comment.
Cogentrix, which Carlyle bought from Goldman Sachs in 2012, owns more than 70 gas, coal, solar and other renewable assets.
Last month, investment firms Global Infrastructure Partners and CPP Investments agreed to take US utility Allete (NYSE:) private in a deal valued at $6.2 billion.