Texas-based utility Vistra Energy has agreed to buy nearly 2.6 gigawatts (GW) of gas-fired power plants from Lotus Infrastructure Partners for $1.9 billion. The acquisition includes seven plants located in New York, California, New England, and across 13 states served by the PJM Interconnection grid operator.
The deal features five combined-cycle power plants and two combustion turbine facilities. This move comes as U.S. electricity demand is expected to rise sharply, driven largely by the rapid growth of data centers.
The U.S. Energy Information Administration (EIA) projects electricity consumption will hit record highs in both 2025 and 2026, reaching 4,179 billion kWh this year and 4,239 billion kWh next year, as competition among artificial intelligence developers intensifies.
At the same time, the Federal Energy Regulatory Commission (FERC) recently warned that the U.S. power grid faces serious risks this summer. Factors such as extreme heat, rising AI-related electricity demand, and the quick retirement of baseload power plants without equivalent replacements could cause grid failures.
Earlier this week, another Texas utility, NRG Energy, announced it will buy gas-fired power assets worth $12 billion from LS Power Equity Advisors. NRG’s CEO, Larry Coben, said the company is ready to lead during this “power demand supercycle” by providing reliable energy solutions.
Gas and coal plants supply baseload power, continuously matching electricity supply with demand. Unlike solar and wind, these plants do not depend on weather, making them critical for grid stability.
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