Private equity funds affiliated with Blackstone Energy Transition Partners have signed a definitive agreement to acquire the Hill Top Energy Center, a 620MW natural gas power plant in Western Pennsylvania, US, from private investment company Ardian for nearly $1bn.
Completed in 2021 and located in Greene County, Hill Top is claimed to be one of the most efficient combined cycle gas turbine plants in the US.
It will continue to meet growing power needs linked to data centre development and other use cases in the Pennsylvania-New Jersey-Maryland electric market.
This acquisition aligns with Blackstone's announcement in July to invest over $25bn in Pennsylvania's digital and energy infrastructure.
The investment aims to bolster AI and stimulate an additional $60bn in funding into the Commonwealth, stated Blackstone.
Santander and Houlihan Lokey acted as financial advisors to Blackstone Energy Transition Partners while Kirkland & Ellis served as legal advisor for this transaction.
Blackstone Energy Transition Partners senior managing director Bilal Khan and managing director Mark Zhu jointly said: “The electricity infrastructure required to power the AI revolution requires a tremendous amount of capital. 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 centre of AI innovation.”
After years of flat growth in US grid demand, electricity consumption is rising due to industrial onshoring, widespread electrification, and the proliferation of AI data centres.
These data centres are the leading drivers of demand growth, creating new opportunities for investors in natural gas-fired generation, according to the company.
According to a Reuters report, Blackstone Energy Transition Partners earlier this year agreed to acquire the 774MW Potomac Energy Center in Loudoun County, Virginia.
A natural gas-fired power plant built in 2017, the Potomac Energy Center is located in northern Virginia, close to Washington, D.C..
