Shares of Vistra Corp. (NYSE:VST) surged nearly 5% in premarket trading on Tuesday following the announcement of its agreement to acquire Cogentrix Energy, a strategic move aimed at significantly enhancing its generation capacity to satisfy the increasing electricity demands of artificial intelligence data centers.
The acquisition, valued at approximately $4 billion, will be financed through a combination of cash, stock, and the assumption of Cogentrix’s debt. The deal is pending regulatory approval and is slated for completion in mid-to-late 2026.
By acquiring Cogentrix, Vistra will add 10 natural gas-fired generation facilities, contributing about 5,500 megawatts of capacity. These natural gas plants are particularly valuable as they provide reliable and dispatchable power, essential for large data centers that operate continuously.
This acquisition follows Vistra’s recent $1.9 billion purchase of seven gas-fired plants from Lotus Infrastructure Partners, completed in May. Collectively, these acquisitions position Vistra to better cater to the escalating demands from hyperscale data center operators, marking a significant expansion of the company’s operational footprint.
Analysts have indicated that the valuation of the acquisition is favorable in relation to Vistra’s existing portfolio, suggesting a positive outlook on the company’s future growth trajectory. This strategic initiative not only bolsters Vistra’s capacity but also underscores its commitment to meeting the evolving energy needs in a rapidly advancing technological landscape.