(Reuters) – NRG Energy said on Monday it would acquire power generation assets from energy infrastructure investment firm LS Power in a cash-and-stock deal valued at $12 billion, as the U.S. utility banks on industrial customers driving electricity demand across the country.
Shares of NRG Energy rose more than 6% in premarket trade.
According to the U.S. Energy Information Administration, power consumption in the country is expected to reach record highs in 2025 and 2026, driven by a proliferation of data centers dedicated to AI and cryptocurrency and as homes and businesses use more electricity for heat and transportation.
“We are in the early stages of a power demand supercycle,” NRG CEO Larry Coben said.
NRG said the new assets would include natural gas generation facilities as well as a virtual power plant, which integrates multiple resources to provide power to the grid.
The deal, expected to close in the first quarter of 2026, would double NRG’s generation capacity to 25 gigawatts (GW), adding 18 natural gas-fired facilities totaling 13 GW across key markets in the Northeast and Texas, according to the company.
NRG will fund $6.4 billion of the deal in cash and $2.8 billion in stocks to LS Power. It would also assume $3.2 billion of net debt at deal close and will receive around $0.4 billion in tax benefits from the transaction.
The acquisition would be immediately accretive to earnings per share, NRG said. It now expects long-term compounded annual growth rate of 14% for per share profit, compared with its prior view of 10%.
As of March 31, NRG’s long-term net debt stood at $9.81 billion.
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