US Utilities on Dealmaking Spree to Blockbuster 2025

(Reuters) – With electricity demand in the United States set to hit record highs over the next two years, utilities are doubling down on assets that can boost their power generation capacity while shedding others to fund their massive spending plans.

The U.S. utilities sector – which includes electric, gas and water utilities – has signed deals worth $60.47 billion so far in 2025, per data compiled by LSEG.

The dealmaking spree comes as the industry prepares for rapid growth in electricity consumption nationwide, partly driven by power-hungry data centers needed to support the boom in artificial intelligence usage.

Power demand from data centers in the U.S. is expected to nearly triple in the next three years and consume as much as 12% of the country’s electricity, according to a Department of Energy-backed study.

Here are some of the biggest mergers, acquisitions and divestitures announced in 2025:
Company
Deal Description
Deal Value
Expected Closing Date
Constellation Energy
Acquiring Calpine, a private natural gas and geothermal company
$16 billion
Late 2025
NRG Energy
Buying power generation assets from LS Power
$12 billion
First quarter of 2026
NRG Energy
Acquired 738 MW natural gas assets from Rockland Capital
$560 million
Closed in April
TXNM Energy
To be acquired by Blackstone Infrastructure unit
$11.5 billion
Second half of 2026
Vistra
Acquiring seven natural gas plants from Lotus Infrastructure Partners
$1.9 billion
Late 2025 or early 2026
American Electric Power
Selling 20% stake in transmission network to KKR and PSP Investments
$2.82 billion
Second half of 2025
Sempra
Selling energy infrastructure assets in Mexico and minority stake in Sempra Infrastructure
Not disclosed
Mid-2026
Eversource Energy
Selling public water supply unit
$2.4 billion
Late 2025
National Grid
Selling U.S. onshore renewables business to Brookfield Asset Management
$1.74 billion
First half of the financial year to March 31, 2026
Ares Management
Selling 774 MW natural gas plant in Virginia to Blackstone
~$1 billion
Not disclosed
Partners Group
Buying energy asset management platform and gas-fired plants in California from Avenue Capital Group
$2.2 billion
Not disclosed
AES Corp
Selling 30% equity interest in Ohio subsidiary to CDPQ
$546 million
First half of 2025

Reporting by Vallari Srivastava, Pooja Menon, Katha Kalia and Arunima Kumar in Bengaluru; Editing by Devika Syamnath

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