Blackstone Energy to Buy Natural Gas Plant in Virginia’s “Data Center Alley” 

Blackstone Energy Transition Partners, the energy investment arm of Blackstone, has acquired Potomac Energy Center from Ares Management, which had owned the facility since 2021. While the financial terms of the deal were not disclosed, Reuters reports that the plant will cost Blackstone $1 billion. 

The Potomac Energy Center is a 774 MW natural gas-fired power plant in Loudoun County, VA. This area is home to approximately 25% of U.S. data center capacity, and the plant is situated near over 130 data centers, with significant growth anticipated in the region. 

The acquisition aligns with Blackstone’s strategy to focus on power infrastructure that supports data centers and the AI revolution. This investment expands Blackstone’s portfolio as the world’s largest data center provider, complementing their recent investments in CoreWeave and DDN. 

“Potomac is one of the most efficient gas power plants in the region and has the potential to integrate a hydrogen fuel blend in the future, which could provide future environmental benefits,” said Mark Zhu, managing director at Blackstone Energy Transition Partners. 

Santander and Jefferies LLC served as M&A advisors to Blackstone on this transaction.