Talen Energy Stock Soars After-Hours On $3.5B Purchase Of Gas-Fired Power Plants Eyeing AI Demand

Talen Energy stock jumped 16% in extended trading on Thursday after the company said it will buy two gas-fired power plants located in Pennsylvania and Ohio for $3.5 billion, amid a dealmaking spree in the power industry driven by growing demand from artificial intelligence data centers.

The company said it will buy Caithness Energy’s Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio, which is owned jointly by Caithness Energy and BlackRock. The two assets will increase the company’s annual output by nearly 50%, from approximately 40 terawatt-hours to 60 terawatt-hours.

“The addition of these plants reduces our dependence on the capacity market,” Talen CEO Mac McFarland said in a call with analysts. “These plants are the closest thing to adding another nuclear plant to our portfolio.”

Talen’s multi-billion-dollar deal adds to the number of acquisitions in the power sector this year, as U.S. electricity demand grows at the fastest pace in decades. Several tech giants are expected to invest billions in securing energy for their data centers, which require a stable power source throughout the year.

The company said it is buying the assets at roughly 50% to 65% of the cost of new projects. It has already signed a mega-deal with Amazon to supply power. The new plants are also located within the PJM interconnection, the largest power grid operator in the U.S. They would get access to natural gas from the Marcellus basin in the region.

Retail sentiment on Stocktwits on Talen in the ‘bullish’ territory at the time of writing, while retail chatter was ‘high.’ The deal is expected to close in the fourth quarter.

The deal announcement comes days after U.S. President Donald Trump unveiled over $90 billion in investments in AI and energy at an event at Carnegie Mellon University in Pittsburgh. The Trump administration has repeatedly emphasized the importance of coal and natural gas for the country’s energy security and has announced several steps to bolster the fossil fuel industry.

Talen stock has gained 28% this year.

Also See: Brazil’s Lula Intensifies Attacks On Trump Amid Tariff Dispute, ‘Won’t Take Orders

For updates and corrections, email newsroom[at]stocktwits[dot]com.