Blackstone's energy investment unit has made a significant move in the power sector, agreeing to acquire the Potomac Energy Center in a deal that underscores the growing appeal of power plants located near data centers. The asset manager announced on Thursday that Blackstone Energy Transition Partners will purchase the 774-megawatt natural gas-fired power plant situated in Loudoun County, northern Virginia.

While the official statement did not disclose financial details, sources familiar with the transaction told Reuters that Blackstone is set to pay approximately $1 billion for the facility. The power plant, previously owned by Ares Management since 2021, is strategically located in an area estimated to host about a quarter of the current U.S. data center capacity.

Bilal Khan, senior managing director at Blackstone Energy Transition Partners, pointed to the unique attributes of this acquisition. "This opportunity is unique," Khan told Reuters. "Not only for its location and its unparalleled access to data centers in Virginia, but also for the efficiency of the plant and the young age of the facility." The Potomac Energy Center, constructed in 2017, is relatively new in the power generation landscape.