Blackstone Energy Transition Partners has agreed to acquire the Potomac Energy Center, a 774-megawatt natural gas-fired power plant located in Loudoun County, Virginia.
This deal underscores the growing interest in power plants situated near data centers, with the Potomac Energy Center’s location being a key factor.
The region, outside Washington D.C., is home to around a quarter of the U.S. data center capacity. The plant, built in 2017, is seen as attractive due to its efficiency and proximity to the growing demand for power driven by data centers and the rise of artificial intelligence.
Although the financial terms were not disclosed, sources suggest the deal is valued around $1 billion. The deal is part of Blackstone’s broader strategy of investing in energy infrastructure, particularly in sectors benefiting from the expansion of data centers.
Blackstone has previously invested in both data centers and the energy assets powering them, including a $16 billion acquisition of Australian data center operator AirTrunk in September.