(Reuters)

Blackstone Infrastructure will acquire utility company TXNM Energy in an $11.5 billion deal, including debt, as the investment firm bets on rising U.S. electricity demand and a shift to cleaner energy sources.

Shares of TXNM rose 9.2% to $57.75 in premarket trading after the New Mexico-based utility said on Monday the all-cash deal from Blackstone Infrastructure valued it at $61.25 per share, representing a nearly 15% premium based on the stock’s last close, according to LSEG data.

With U.S. power demand projected to reach record levels in 2025, driven by mounting energy needs of AI and cryptocurrency data centers as well as increased residential and commercial consumption, more companies are investing in utilities.

Utility NRG Energy said last week it would acquire some power generation assets from energy infrastructure investment firm LS Power in a deal valued at $12 billion.

Earlier this year, KKR and PSP Investments also bought a 20% stake in American Electric Power’s transmission network for $2.82 billion.

Reuters reported last week that Blackstone was in talks to buy the New Mexico and Texas-focused utility, citing people familiar with the matter.

Blackstone, which manages $60 billion in infrastructure assets, is betting that stable, regulated returns and high capital needs in grid modernisation make TXNM a long-term investment fit.

The long-term capital from Blackstone is expected to help TXNM meet its clean energy goals and electricity demand, while maintaining grid reliability, the utility said.

It also expects to issue an additional $400 million of equity before the Blackstone transaction is closed.

TXNM Energy provides electricity to 800,000 homes and businesses in New Mexico and Texas, according to its website.

CEO Pat Collawn will step down upon closing of the transaction, expected in the second half of 2026, and will be succeeded by insider Don Tarry, TXNM said.