Blackstone Strategic Investment Acquiring the Potomac Energy Center

Blackstone Energy Transition Partners has announced the acquisition of the Potomac Energy Center, a 774-megawatt natural gas-fired power plant located in Loudoun County, Virginia. The transaction, valued at approximately $1 billion, highlights the critical role energy infrastructure plays in meeting the growing demands of data centers and artificial intelligence (AI) applications (Reuters).

Loudoun County, often referred to as “Data Center Alley,” hosts approximately 25% of the United States’ data center capacity, with over 130 facilities in operation and more under development (Blackstone). To be more precise, according to our data at Aterio, inside a 2-mile radius there are 11 out of those 130 facilities. Also, inside the same radius surrounding the power plant there are another 21 Hyperscale data centers projected to come online in the next seven years, potentially relying on power from this strategically located plant.

Built in 2017, the Potomac Energy Center stands out for its efficiency and modern design, making it a cornerstone for powering the region’s digital infrastructure.

Data Centers in the Potomac Radius

Within a 2.02-mile radius of the Potomac Energy Center, a significant cluster of data centers underscores the strategic importance of this acquisition. This radius alone is set to encompasses over 6.4 million+ square feet of data center space and an aggregate power capacity exceeding 1,350 MW+, showcasing the immense scale of operations reliant on dependable energy (Aterio).

Key players operating Hyperscale size Data Centers in this radius include:

• Vantage Data Centers
• Google
• Microsoft
• TA Realty
• Compass Data Centers
• Stack Infrastructure

These facilities highlight the area’s role as a critical hub for cloud and AI infrastructure. The proximity to the Potomac Energy Center offers these data centers a reliable energy source, essential for sustaining operations and scaling capacity.

The Power of Proximity

The Potomac Energy Center’s ability to directly supply power to these facilities reduces transmission losses, increases energy efficiency, and strengthens resilience. For data centers, which require massive amounts of energy to operate and cool equipment, this close proximity translates into lower operational costs and a smaller carbon footprint.

An Investment in the Future

The rise of AI, cloud computing, and edge computing continues to push demand for data centers to new heights. Investments in energy infrastructure like the Potomac Energy Center ensure that the digital economy can scale without hitting energy bottlenecks.

Blackstone’s acquisition isn’t just a bet on the present—it’s a calculated investment in the future of technology. By securing a critical piece of the infrastructure puzzle, they’ve positioned themselves at the intersection of innovation and sustainability.

Conclusion

The Potomac Energy Center’s location within a dense cluster of data centers highlights the synergy between energy and digital infrastructure. As the digital economy continues to grow, so too will the need for reliable, scalable, and efficient power solutions. Blackstone’s investment is a blueprint for how strategic energy investments can unlock new opportunities in the technology sector.

If you want more details on the projects around this power plant, download our free sample data set.