Irving, Texas-based Vistra Corp. (NYSE: VST) is expanding its power generation portfolio with a significant acquisition aimed at capitalizing on the artificial intelligence boom's massive energy requirements.
The Fortune 500 integrated retail electricity and power generation company announced on May 15 that it has executed a definitive agreement to purchase seven modern natural gas generation facilities from Lotus Infrastructure Partners for $1.9 billion, or approximately $743 per kilowatt of capacity.
The acquisition includes five combined cycle gas turbine facilities and two combustion turbine facilities strategically located across multiple regions: PJM Interconnection (covering 13 eastern states), New England, New York, and California. This geographic diversification strengthens Vistra's ability to serve growing power demands in key competitive markets.
"We believe natural gas-fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of U.S. power grids for years to come," said Vistra President and CEO Jim Burke. "The addition of this attractive portfolio allows Vistra to serve growing power demand while exceeding our mid-teens levered return target."
The timing of this acquisition aligns with projections from the International Energy Agency that power demand from data centers will double by 2030, with baseload generation like natural gas best matching the constant energy needs of AI infrastructure. Vistra, which was the S&P 500's top performer in 2024 with over 200% stock growth, has been actively pursuing partnerships with data center developers to capitalize on this trend.
The transaction, expected to close in late 2025 or early 2026 pending regulatory approvals, will be funded through a combination of cash and assumption of an existing term loan from Lotus. Vistra expects the acquisition to deliver immediate benefits to shareholders, including per-share accretion from the first year following closing.