Blackstone, the world’s largest alternative asset manager, has announced its energy-focused private equity business will acquire the 620-MW natural gas-fired Hill Top Energy Center in Pennsylvania. The deal, unveiled on September 15, sees Blackstone Energy Transition Partners purchasing the power station from Ardian, a global private investment firm. This acquisition aligns with Blackstone’s strategy to secure power generation assets to support the burgeoning demands of artificial intelligence (AI) and data centers.
In July, Blackstone revealed plans to invest up to $25 billion in gas-fired combined-cycle power plants and data center infrastructure in Pennsylvania, part of a broader $60 billion investment plan for the state. The Hill Top facility, operational since 2021, is situated in Greene County, Pennsylvania, a region energy analysts identify as prime for data center development, alongside other natural gas-rich states like Ohio and West Virginia.
Bilal Khan and Mark Zhu, senior managing director and managing director respectively at Blackstone Energy Transition Partners, emphasized the capital-intensive nature of the electricity infrastructure required for the AI revolution. They stated, “We are proud to make our latest investment in this sector–which is among our highest conviction investment themes–in Western Pennsylvania. Hill Top is among the best-in-class and a highly efficient modern power generation facility that is exceptionally well positioned to help Pennsylvania and the region serve as a key center of AI innovation.”
Blackstone’s acquisition spree in the energy sector extends beyond Pennsylvania. Earlier this year, the firm acquired the 774-MW natural gas-fired Potomac Energy Center in Loudoun County, Virginia, a state teeming with data centers. Northern Virginia alone hosts about a quarter of U.S. data center capacity, with the Potomac plant strategically located near over 130 data centers. Additionally, Blackstone announced in May its intent to acquire New Mexico-based utility company TXNM Energy in an $11.5-billion deal, filed with state and federal regulators in late August. Post-acquisition, Blackstone plans to invest $25 million into technologies supporting New Mexico’s Energy Transition Act.
As the largest data center investor globally, Blackstone has recently made significant investments in AI companies CoreWeave and DDN. The firm has also entered a joint venture with PPL Utilities to develop, own, and operate power plants that will support data centers under long-term service agreements with hyperscalers. This joint venture is expected to include natural gas-fired units. Pennsylvania’s abundant natural gas from the Utica and Marcellus basins, coupled with existing gas pipeline infrastructure, makes it an attractive location for such developments. PPL officials have noted that their service territory in Pennsylvania has garnered interest for over 60 GW of potential data center development, with more than 13 GW in advanced planning stages.
The growing energy demand to support AI and other technologies underscores the importance of reliable baseload power, currently met by natural gas-fired generation. Blackstone’s strategic acquisitions and investments position the firm at the forefront of meeting these energy demands, shaping the future of power generation and data center development.