Blackstone Acquires Potomac Energy Center, Capitalizing on Data Center Proximity
Blackstone Energy Transition Partners, a unit of Blackstone dedicated to energy investments, has acquired Potomac Energy Center, a 774-megawatt natural gas-fired power plant in Loudoun County, Virginia.
Strategic Location near Data Center Hub:
Potomac Energy Center's proximity to northern Virginia, which houses approximately a quarter of the U.S. data center capacity, was a key factor in Blackstone's acquisition. Data centers require consistent power, driving demand for nearby generation assets.
Growing Demand for Gas-Fired Power:
The surge in artificial intelligence and data center development has increased power consumption. Gas-fired power plants can provide the reliable output required by these facilities.
Acquisition Details:
Blackstone is reported to have paid approximately $1 billion for the facility, which was previously owned by Ares Management.
Blackstone's Energy Infrastructure Strategy:
The acquisition aligns with Blackstone's strategy of investing in both data centers and the energy infrastructure that supports them. The firm has recently invested heavily in these sectors, including a $16 billion deal to acquire AirTrunk and a $7.5 billion debt facility for CoreWeave.