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