Vistra Corp. has agreed to purchase seven natural gas-fired power plants for $1.9 billion, joining a wave of major U.S. power generators investing heavily in fossil fuel assets to meet the surging electricity needs driven by artificial intelligence (AI).
This acquisition follows similar moves by industry peers. On Monday, NRG Energy Inc. announced a $12 billion deal—including debt—to acquire a portfolio of gas-fired plants from LS Power Equity Advisors LLC. Earlier this year, Constellation Energy Group Inc. revealed plans to acquire Calpine Corp., a leading gas-fired power operator, for $16.4 billion.
The value of power generation assets has surged over the past year amid expectations of soaring electricity demand, primarily from data centers that run energy-intensive AI applications. This growing demand has sparked a competitive rush among energy companies to secure capacity capable of supporting the expanding digital infrastructure.
Under the latest agreement with Lotus Infrastructure Partners, Vistra will add approximately 2,600 megawatts of generation capacity across five states, primarily in the Northeast. This addition is roughly equivalent to the output of 2.5 nuclear reactors and expands Vistra’s extensive fleet, which spans from California to Maine.
Last year, Vistra completed its $6.8 billion acquisition of Energy Harbor’s nuclear plants. The company’s diverse energy portfolio now includes nuclear, coal, solar, and battery storage assets.
Investor enthusiasm has been strong as independent power producers announce deals aimed at capitalizing on the AI-driven data center boom—after years marked by industry challenges and bankruptcies. Paul Patterson, analyst at Glenrock Associates LLC, noted that shares of power producers have responded positively: NRG shares are up 72% this year, Constellation has gained 27%, and Vistra’s stock has risen 10%.
“People are excited about AI, data centers, and the reshoring of industrialization in the U.S.,” Patterson said.
He added that Vistra’s purchase of gas-fired plants aligns with expectations and predicted more such acquisitions in the near future.
Related topics: