PE firm Carlyle has hired advisers to explore a sale of Cogentrix that could value the North Carolina-based power producer at as much as $3 billion to $4 billion, the Financial Times reported, citing three people briefed on the matter.

Carlyle is also selling other power assets owned by its infrastructure business in separate processes, according to the report on Friday.

Interest in utility firms are on the rise as technological innovations, such as artificial intelligence and data centers, boost power demand.

Investment bank Lazard and law firm Latham & Watkins have been hired to advise on the sale, the FT reported.

Carlyle and Latham & Watkins did not immediately respond to Reuters requests for comment, while Lazard declined to comment.

Cogentrix, which was bought by Carlyle from Goldman Sachs in 2012, has more then 70 gas, coal, solar and other renewable assets.

Last month, investment firms Global Infrastructure Partners and CPP Investments agreed to take U.S. utility Allete private in a $6.2 billion deal.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shounak Dasgupta)