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NRG Energy acquires 25 GW of capacity in $12 billion deal

NRG Energy acquires energy assets from LS Power, including 18 natural gas power plants, to strengthen its portfolio amid expected growth in U.S. electricity demand.

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Power producer NRG Energy has announced the acquisition of a portfolio of generation assets from energy infrastructure investment firm LS Power, in a deal valued at $12 billion. This strategic move aims to address the anticipated rise in electricity consumption, driven in particular by the expansion of data centres and the growing digitalisation of residential and industrial usage.

Generation capacity doubled

The agreement will enable NRG Energy to double its generation capacity, reaching 25 gigawatts (GW) through the addition of 18 natural gas-fired plants representing 13 GW. These facilities are primarily located in the Northeastern United States and Texas, key markets for the company. In parallel, NRG will add a virtual power plant to its portfolio, designed to aggregate multiple resources in support of the electric grid.

According to the U.S. Energy Information Administration, electricity consumption in the United States is projected to reach record highs in 2025. This growth is attributed largely to the expansion of digital infrastructure such as data centres supporting artificial intelligence technologies and cryptocurrency-related applications.

Financial terms and outlook

The transaction will be financed through $6.4 billion in cash and $2.8 billion in stock issued to LS Power. NRG will also assume $3.2 billion in net debt at closing, scheduled for the first quarter of 2026. The deal includes approximately $400 million in tax benefits.

As of March 31, NRG’s long-term net debt stood at $9.81 billion. Following the acquisition, the company expects a compounded annual growth rate of 14% for earnings per share, up from a prior forecast of 10%.

Data centre-related initiatives

In February, NRG signed letters of intent with two data centre developers to supply up to 400 megawatts of retail electricity in an initial phase. The company is also collaborating with GE Vernova to develop up to 5.4 GW of new natural gas capacity.

“We are in the early stages of a power demand supercycle,” said Larry Coben, Chief Executive Officer of NRG Energy, quoted by Reuters on May 12.

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