Blackstone is in the process of acquiring the Potomac Energy Center, a 774-megawatt (MW) natural gas power plant located in Loudoun County, Virginia. Valued at approximately $1 billion, the transaction reflects Blackstone’s strategic focus on investing in energy infrastructure to meet the rising demand for power, particularly from the region’s expanding data center industry.
The Potomac Energy Center, previously known as the Panda Stonewall Energy Facility, is situated within the PJM Interconnection, a key transmission grid serving much of the U.S. Northeast. This location places the facility in close proximity to Northern Virginia’s “Data Center Alley,” an area known for its rapid growth in tech and AI-focused operations, which require reliable and high-capacity energy sources.
The acquisition is being made from Ares Management Corp., a Los Angeles-based investment firm, which has owned the facility since 2021. Blackstone is being advised on the deal by Santander and Jefferies LLC, and the transaction is expected to close in the near future, pending final approval.
Bilal Khan, Senior Managing Director at Blackstone Energy Transition Partners, highlighted that the Potomac Energy Center is well-positioned to support the growing energy needs driven by data centers in Northern Virginia. He also noted that the acquisition fits into Blackstone’s broader investment strategy, focusing on electric infrastructure essential for the development of emerging technologies like artificial intelligence.
The deal underscores a larger trend of investment in critical energy assets, as the demand for reliable power sources continues to rise alongside the rapid expansion of data centers in the region.
Sources: Washington Business Journal
PJM Interconnection
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