- Blackstone is acquiring the 620-megawatt Hill Top Energy Center in Pennsylvania for $1B, citing rising demand for power from AI data centers.
- The natural gas plant is one of the most efficient of its kind in the US and was built in 2021, with operations already supporting data centers in PA, MD, and NJ.
- The move follows Blackstone’s recent $25B investment commitment in power and data center infrastructure across Pennsylvania, reinforcing its energy transition strategy.
Blackstone Eyes AI-Driven Power Demand
Blackstone has agreed to purchase the Hill Top Energy Center for $1B, reports CoStar. The facility is a natural gas power plant located about 50 miles south of Pittsburgh. The investment is being made through Blackstone Energy Transition Partners, and reflects the growing energy needs of AI-fueled data centers.
A Strategic Power Grab
The 620-megawatt facility, located in Carmichaels, PA along the Monongahela River, is among the newest and most efficient combined-cycle gas plants in the country. It began operations in 2021 and has since supported power demands in the Mid-Atlantic region.
The seller, Ardian, a Paris-based investment firm, owns the plant through one of its infrastructure funds. While financial terms were disclosed, the companies did not announce a closing date for the deal.
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Fueling The AI Surge
The purchase is part of a broader effort by Blackstone to address the energy needs of AI and cloud infrastructure. The firm recently invested in the Potomac Energy Center in Virginia and has ongoing involvement in financing other power assets linked to data center growth.
Power-hungry AI applications have developers seeking proximity to reliable energy sources. For example, Elon Musk’s xAI initiative is developing data centers next to a Tennessee Valley Authority plant in Memphis.
Blackstone’s Bigger Bet On Energy Infrastructure
In July, Blackstone announced a $25B investment plan focused on energy and data center infrastructure in Pennsylvania. This latest deal reinforces that strategy and underscores the firm’s continued belief that AI will drive long-term power consumption increases.
Why It Matters
As AI continues to reshape digital infrastructure, the demand for stable and scalable energy solutions has skyrocketed. Investors like Blackstone are positioning themselves to profit from this shift by snapping up efficient energy assets that can directly serve data centers.
What’s Next
Expect more infrastructure deals linking power and AI in the months ahead. With over 38K branded data center units across the US and counting, energy access is fast becoming the newest frontier in the real estate and tech convergence.
