Blackstone to purchase $1 billion Virginia energy plant close to information facilities

By David French

(Reuters) -The unit of Blackstone (NYSE:BX) devoted to investments within the vitality business has agreed to accumulate Potomac Vitality Heart, the asset supervisor informed Reuters on Thursday, in a deal symbolizing the attract to buyers of energy crops sited close to information facilities.

Blackstone Vitality Transition Companions has agreed to purchase the 774-megawatt pure gas-fired energy plant in Loudoun County in northern Virginia, in accordance with a press release.

The assertion gave no monetary particulars, however sources conversant in the matter mentioned Blackstone is paying round $1 billion for the ability. Fellow funding agency Ares Administration (NYSE:ARES) has owned the plant since 2021.

Potomac Vitality Heart is located within the space of northern Virginia exterior of Washington D.C. which is estimated to have round 1 / 4 of the present U.S. information middle capability.

This proximity was one of many the explanation why Potomac Vitality Heart was so engaging, in accordance with Blackstone Vitality Transition Companions’ Senior Managing Director Bilal Khan.

“This chance is exclusive,” Khan informed Reuters. “Not just for its location and its unparalleled entry to information facilities in Virginia, but additionally for the effectivity of the plant and the younger age of the ability.”

The plant was inbuilt 2017.

The growth in synthetic intelligence and information facilities is driving energy demand to file ranges, with development anticipated to persist for the remainder of the last decade. That is making technology belongings more and more engaging to patrons, particularly so for gas-fired energy crops which might present the constant energy output that information facilities require.

Earlier this month, Constellation Vitality (NASDAQ:CEG) agreed the $16.4 billion buy of Calpine. The most important U.S. energy deal in practically 20 years is geared toward including Calpine’s predominantly gas-fired fleet to Constellation’s present technology combine which is majority nuclear energy.

Blackstone has been investing, throughout various methods, into each information facilities and the vitality infrastructure powering them. In September, it agreed a $16 billion deal to purchase Australian information middle operator AirTrunk, whereas AI cloud platform CoreWeave mentioned in Might it raised a $7.5 billion debt facility from funding corporations together with Blackstone.