With a $1B power plant deal in Virginia, Blackstone continues to bet big on data centers and the infrastructure to power them.

Prominent private equity investment firm Blackstone has agreed to acquire the 774-MW Potomac Energy Center—a natural gas power plant located in Virginia’s

Blackstone Energy Transition Partners paid about $1 billion for the 774-megawatt Potomac Energy Center — a natural gas power plant just south of Leesburg, Va., at 20260 Energy Park Drive — according to Reuters, citing a source familiar with the deal. Ares Management (ARES) sold the facility, which was built in 2017.

The Northern Virginia region currently represents approximately 25 percent of U.S. data center capacity, and the Potomac plant is located in close proximity to over 130 data centers – with significant further growth expected'.

The unit of Blackstone dedicated to investments in the energy industry has agreed to acquire Potomac Energy Center, the asset manager told Reuters on Thursday, in a deal symbolizing the allure to investors of power plants sited near data centers.

Blackstone Energy Transition Partners has agreed to acquire the 774MW Potomac Energy Center in Loudoun County, Virginia.

Surging electricity growth is providing more opportunities for investors, especially in natural gas-fired generation.