NRG Energy expands Texas footprint amid surging electricity demand
NRG Energy has finalised the acquisition of six natural gas power generation facilities from Rockland Capital, adding 738 megawatts of capacity to its growing portfolio in Texas. The $560 million deal strengthens the company's position in a state experiencing unprecedented electricity demand growth.
The acquisition includes one combined-cycle unit and five peaker units, described as "modern, flexible" assets that will enhance NRG's ability to respond to fluctuating energy needs. 34 employees from these facilities will join the NRG team as part of the transaction.
This purchase follows NRG's recent strategic moves to capitalise on what CEO Larry Coben calls "the early stages of a power demand supercycle". The company's share price hit an all-time high of $148.30 earlier this week following the announcement of a separate, larger acquisition of LS Power assets valued at $12 billion.
"The Texas electricity market is experiencing rapid expansion driven by population growth, electrification, and data centre development across the state," said Robert J. Gaudette, Executive Vice President at NRG. "Expanding our natural gas generation portfolio with these assets enhances our integrated platform and creates long-term value for our shareholders."
Industry analysts note that increasing electricity consumption from AI and cryptocurrency operations, combined with growing residential and commercial demand, has created favourable conditions for power generators. The Rockland Capital acquisition is expected to contribute approximately $50-60 million in annual adjusted EBITDA through 2028, according to company projections.
The transaction, which was subject to regulatory approval, was completed in the second quarter of 2025.
