Data Center View - February 21, 2025 - Blackstone to buy $1 billion Virginia power plant

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NEWS ROUNDUP

ACQUISITION: Blackstone to buy $1 billion Virginia power plant. Blackstone has agreed to acquire Potomac Energy Center, a 774MW natural gas-fired power plant in Loudoun County, VA. The deal, which underscores growing investor interest in power generation assets near data centers, is reportedly valued at around $1 billion. Potomac Energy Center is strategically located in northern Virginia, home to approximately 25% of the current U.S. data center capacity. This proximity made the plant particularly attractive to Blackstone, which has been expanding its investments in both data centers and energy infrastructure. "This opportunity is unique," said Bilal Khan, Senior Managing Director at Blackstone Energy Transition Partners. "Not only for its location and its unparalleled access to data centers in Virginia, but also for the efficiency of the plant and the young age of the facility."

DISPOSITION: Yahoo sells data center for $49 million. H5 Data Centers has acquired Yahoo’s 43-acre data center campus in Lockport, NY, for $49 million, marking one of the largest private sector-backed deals in the town’s recent history. The transaction ensures Yahoo’s continued presence in the region for at least five more years through a sale-leaseback arrangement. The 409,000-square-foot complex, which serves as the anchor tenant in the Town of Lockport Industrial Park, will remain under Yahoo’s operational control, while H5 Data Centers will own the real estate.

DEVELOPMENT: Equinix proposes 300-acre data center campus in Illinois. Equinix has proposed a 300-acre data center campus in Minooka, IL, marking a potential multi-billion-dollar investment in the community. The company held its first proposal meeting to discuss the project, which would be built on farmland along Ridge Road between Holt and Wildy. If completed, the facility could generate $20 million in annual tax revenue for the Village of Minooka and bring over 160 permanent jobs to the area.

FINANCING: Goldman Sachs provides $130 million loan. HMC Capital, along with its subsidiary StratCap, has secured $130 million in acquisition financing for the purchase of two data centers leased to State Farm. The loan, provided by Goldman Sachs, supports the acquisition of the properties from DigiCo Infrastructure REIT. Newmark arranged the debt transaction, with a team led by Jordan Roeschlaub, Clint Frease, Ben Kroll, and Nick Scribani. The sale process was handled by Brent Mayo, Newmark’s head of data center capital markets, and Josh King, Newmark’s executive vice chairman of U.S. capital markets.

PEOPLE MOVES: Elevate appoints new CEO. ArcLight and its portfolio company Elevate Renewables have announced the appointment of Joshua Rogol as CEO of Elevate. "We are excited to partner with Josh as CEO of Elevate Renewables," said Angelo Acconcia, Partner at ArcLight. James Sullivan, also at ArcLight, added, "Josh has a proven track record of developing large battery portfolios and solutions for strategic partners to help provide fast, effective, and scalable infrastructure.” As part of the leadership transition, Eric Cherniss, previously President of Elevate, has been promoted to Head of Development at ArcLight.

READ: Data center growth could boost US GDP.

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DATA CENTER PROPERTY FOR LEASE

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