- Blackstone’s (BX) $1B purchase of the Potomac Energy Center aligns with its broader strategy to invest in energy infrastructure that supports data centers, a rapidly growing sector.
- Situated in Loudoun County, VA, the power plant is ideally located near one of the largest data center hubs in the US, enhancing its strategic value.
- The deal highlights the growing demand for reliable, consistent power sources, which is driven by the expansion of data centers, particularly those supporting AI tech.
- This acquisition is part of Blackstone’s broader strategy to invest in both the energy and data center sectors, building on previous deals, including the $16B AirTrunk acquisition.
In a bold move that highlights the growing intersection of energy and technology, Blackstone (BX) will acquire the Potomac Energy Center, a 774-megawatt natural gas-fired power plant located in Loudoun County, VA.
The deal, valued at $1B, comes as Blackstone’s energy investment unit, Blackstone Energy Transition Partners, seeks to strengthen its position in the booming data center market, per GlobeSt.
Meeting The Demand
This acquisition is significant because the Potomac Energy Center is located near Northern Virginia, home to around 25% of the US’s current data center capacity.
With the region’s energy demand skyrocketing due to the rapid expansion of data centers—especially those supporting AI—Blackstone is tapping into a critical growth sector.
According to Bilal Khan, senior managing director at Blackstone Energy Transition Partners, the acquisition was driven by the plant’s location and efficiency.
The Potomac Energy Center, built in 2017, is relatively new and efficient. It provides a stable power supply to meet rising demand from nearby data centers. Blackstone’s investment puts the firm at the forefront of the energy transition and data infrastructure boom.
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Growing Energy Needs
The rise of AI has spurred an unprecedented need for reliable, scalable energy sources. Gas-fired power plants, like the Potomac Energy Center, are particularly attractive because they offer the consistent output required by energy-hungry facilities like data centers.
The deal is also part of a broader shift within the energy sector, where investors are eyeing power generation assets to support the tech-driven future.
Recently, Constellation Energy made headlines with its $16.4B acquisition of Calpine, further signaling the growing importance of gas-fired power in meeting future energy needs.
Bigger Footprints
The Potomac Energy Center acquisition builds on Blackstone’s growing portfolio in both energy and technology infrastructure.
In September, Blackstone acquired AirTrunk, an Australian data center operator, for $16B, demonstrating the firm’s commitment to capitalizing on the data center market. Earlier this year, Blackstone participated in a $7.5B debt facility for the AI cloud platform CoreWeave.
The firm’s multifaceted approach positions it as a key player in the sectors that will power the future—data centers and the energy infrastructure that supports them.
