Blackstone Energy Transition Partners announced the acquisition of Potomac Energy Center, a 774-megawatt natural gas power plant located in Loudoun County, Virginia, known as “Data Center Alley.” This strategic investment aligns with Blackstone’s focus on supporting the growing energy demands of data centers and AI infrastructure. The Potomac plant, one of the most efficient in the region, is positioned to supply reliable power and has the potential to integrate hydrogen fuel in the future for environmental benefits.

Northern Virginia accounts for 25% of U.S. data center capacity, and the Potomac plant is adjacent to over 130 data centers, with expected continued growth. Blackstone, a leader in infrastructure investment, has also recently invested in AI-related ventures such as CoreWeave and DDN.

Terms of the transaction were not disclosed. Santander and Jefferies LLC served as M&A advisors to Blackstone.