Vistra to Acquire 2.6 GW Gas Fleet for $1.9B, Citing Surging U.S. Power Demand

Vistra Corp. has agreed to acquire seven natural gas power plants totaling 2,557 MW from Lotus Infrastructure Partners for $1.9 billion, as part of a strategy to meet surging U.S. electricity demand and expand its competitive generation portfolio.

The deal, announced on May 15, is valued at approximately $743 per kilowatt and includes five combined cycle gas turbine (CCGT) plants and two combustion turbine (CT) peaking units located across PJM Interconnection (PJM), ISO New England (ISO-NE), New York Independent System Operator (NYISO), and California Independent System Operator (CAISO) markets. The largest asset is the 1,320-MW Fairless CCGT plant in Pennsylvania, followed by the 510-MW Manchester facility in Rhode Island and the 309-MW Garrison plant in Delaware. Two smaller CCGT plants—Beaver Falls (108 MW) and Syracuse (103 MW)—are situated in New York. The portfolio also includes the 158-MW Hazleton CT plant in Pennsylvania and the 49-MW Greenleaf CT facility in California.

“We are excited to announce another opportunistic expansion of our generation footprint in some of our key competitive markets,” said Vistra President and CEO Jim Burke. “We believe natural gas-fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of U.S. power grids for years to come. The addition of this attractive portfolio of combined cycle and peaking assets allows Vistra to serve growing power demand while exceeding our mid-teens levered return target.”

Burke emphasized the company’s track record of integrating large-scale acquisitions. “Successfully integrating fleets of generation assets is a core competency of our company. We look forward to closing the transaction and welcoming new team members to the Vistra family,” he said.

The company’s confidence stems from two recent, large-scale integrations that reshaped the company’s identity and operational platform. In 2018, Vistra merged with Dynegy in a transformative $1.7 billion all-stock transaction, catapulting Vistra from a Texas-centric player to a nationwide, large, competitive power generator. The deal expanded Vistra’s footprint into PJM, ISO-NE, NYISO, MISO, and CAISO, significantly increasing its scale and geographic reach across key deregulated markets. Operationally, the Dynegy integration enabled cost synergies, improved dispatch economics, and brought retail expertise into Vistra’s portfolio—all while maintaining a high standard of reliability.

In 2024, Vistra completed the acquisition of Energy Harbor, gaining more than 6,400 MW of zero-carbon baseload capacity through one of the nation’s largest competitive nuclear fleets. Executed under its “Vistra Vision” subsidiary, the transaction advanced the company’s strategic decarbonization goals and bolstered its clean energy credentials. It also expanded Vistra’s retail customer base and fortified its market position in key regulated and deregulated states. Industry analysts praised both integrations for their speed, operational continuity, and synergy realization.

With the addition of Lotus’s gas fleet, Vistra is seeking to replicate that playbook, executing a seamless integration that delivers immediate financial and operational value. The company will assume an existing term loan from Lotus, which is expected to cover approximately half of the $1.9 billion purchase price, and fund the remainder with cash on hand. The company has indicated that the assets will be quickly incorporated into its commercial optimization platform and managed through its centralized operations structure.

The deal comes as the U.S. power sector faces a historic surge in electricity demand, driven by the rapid expansion of data centers, artificial intelligence (AI) applications, and industrial reshoring. Several entities have projected record electricity usage in 2025 and 2026, with data centers alone accounting for a significant portion of the new load as hyperscalers ramp up capital investment to meet AI ambitions.

Earlier this month, NRG Energyunveiled a $12 billion deal to acquire LS Power’s 13-GW gas fleet and 6-GW virtual power plant platform, a move CEO Larry Coben said “meaningfully increases the number of sites available to support large loads in data centers.” In January, Constellation Energy announced the $26.6 billion purchase of Calpine Corp., gaining a vast gas-fired fleet to complement its nuclear base and adding $2 billion annually in projected free cash flow. Private equity has also joined the fray: Blackstone Energy Transition Partners acquired the 774-MW Potomac Energy Center in Loudoun County, Virginia, for $1 billion, citing its proximity to a major data center hub. Separately, Blackstone Infrastructure struck an $11.5 billion deal to acquire TXNM Energy, a regulated utility, reflecting rising investor appetite for grid modernization and stable earnings amid sectoral transformation.

Experts suggest the mergers and acquisitions surge is also being prompted by a growing urgency to secure dispatchable capacity in an increasingly constrained development environment. At the same time, rising inflation, supply chain bottlenecks, and lengthy permitting processes have made new builds more expensive and slower to execute. Activity is also being driven by policy shifts. The re-election of Donald Trump has signaled a policy environment more favorable to fossil fuels and natural gas infrastructure, even as renewables and nuclear continue to attract long-term investment.

During Vistra’s May 7 earnings call, Burke noted, “While there has been a bit of turbulence the last few months in the macro environment, the administration is prioritizing AI and attempting to find ways to unlock America’s leadership in this area. Hyperscalers have continued to affirm or even increase their capital expenditure (CapEx) investment levels with respect to data center investments. We believe to meet this growing load, it will require increased power generation from not only new assets, but existing assets as well,” he said.

The company’s strategic outlook is anchored in four priorities: maintaining a diversified generation portfolio, leveraging an integrated commercial-retail model, executing disciplined capital allocation, and expanding its clean energy footprint. Vistra has returned $6.3 billion to shareholders since 2021 and expects to return another $2 billion through 2026 via share repurchases and dividends.

Vistra is also advancing growth across multiple fronts. It holds queue positions for two peaking plants—Permian 1 and 2—at a cost of $1,000/kW, well below current market estimates. On the decarbonization side, the company is completing 600 MW of contracted solar at its Oak Hill and Pulaski sites and mobilizing its Newton battery project in Illinois. Nuclear uprate feasibility studies are also underway, potentially adding 10% to the fleet’s capacity by the early 2030s.

Burke emphasized that accelerating electricity demand—particularly from data centers—is both real and enduring. “We continue to believe the actual level of load growth will compound annually in a low to mid single digits range through 2030 across our markets,” he said. “This is consistent with what we shared last year on our Q1 results call, and now we see this dynamic playing out.”

He also pointed to underutilized gas capacity as a near-term solution for meeting rising loads. “Our large CCGT fleet with nearly 20 GW of total capacity, which currently operates at average utilization rates of approximately 55% to 60%, can run at substantially higher capacity factors, improving grid utilization and lowering unit costs for customers,” he said. “Our approximately two GW of simple cycle peakers have the quick start capabilities to ramp up as load materializes, further contributing to grid reliability,” he said.

—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).