Blackstone to acquire Pennsylvania gas power plant in $1 billion deal

Blackstone said on Monday it has agreed to buy a natural gas plant in Western Pennsylvania for nearly $1 billion, as the investment firm bets on rising US electricity demand to power artificial intelligence technologies.

 

US power demand is projected to reach record levels in 2025, driven by data centers for AI and cryptocurrency technologies, as well as higher residential and commercial consumption.

 

The private equity funds affiliated with Blackstone Energy Transition Partners will buy the Hill Top Energy Center, owned by private investment firm Ardian. The 620-megawatt natural gas plant began operations in 2021.

 

“The electricity infrastructure required to power the AI revolution requires a tremendous amount of capital," Blackstone executives Bilal Khan and Mark Zhu said, adding that the Hill Top plant is well-positioned to support the boom.

 

 

The deal follows Blackstone's announcement in July that it will invest over $25 billion to support Pennsylvania's digital and energy infrastructure to power AI, it said.

 

Earlier this year, Blackstone said it would acquire TXNM Energy in an $11.5 billion deal. In January, the asset manager also made an investment in the Potomac Energy Center, a 774-megawatt natural gas power plant in Virginia.