Utility Vistra to buy natural gas assets for $1.9 billion to meet power demand

May 15 (Reuters) - Utility Vistra VST.N said on Thursday it would acquire seven natural gas generation facilities, with a combined capacity of nearly 2,600 megawatt, from Lotus Infrastructure Partners for $1.9 billion, as it looks to meet growing power demand.

The U.S. Energy Information Administration estimates electricity consumption in the country to reach record highs in 2025 and 2026, driven by surging demand from data centers looking to match Big Tech's AI ambitions.

The deal includes five combined cycle gas turbine facilities and two combustion turbine facilities located across PJM, New England, New York and California, Vistra said.

PJM Interconnection is a regional transmission organization that coordinates the movement of wholesale electricity in parts of the Eastern United States. It covers parts of 13 states from Illinois to New Jersey.

The acquisition is expected to expand Vistra's footprint in key competitive markets and serve growing power demand, while exceeding its mid-teens levered return target, according to its CEO Jim Burke.

Vistra expects to fund the transaction with the assumption of an existing term loan from Lotus and cash on hand.

Greenwich, Connecticut-based Lotus is a private equity firm specializing in energy infrastructure investments.

The power company said the transaction — expected to close sometime in late 2025 or early 2026 — is subject to certain regulatory approvals, including from the Federal Energy Regulatory Commission and the Department of Justice.

Shares of Vistra rose nearly 1.9% in extended trading.