Talen Energy Corp. has announced a landmark agreement to acquire two major combined-cycle gas-fired power plants—one in Pennsylvania and the other in Ohio—for $3.5 billion. The gross value of the transaction, when adjusted for tax benefits, is estimated at $3.8 billion.

The high-value deal involves the acquisition of Caithness Energy’s Moxie Freedom Energy Center in Pennsylvania and Guernsey Power Station in Ohio, which is jointly owned by Caithness and BlackRock. The transaction is expected to close in the fourth quarter of 2025.

Five leading law firms—White & Case LLP, Kirkland & Ellis LLP, Paul Hastings LLP, Simpson Thacher & Bartlett LLP, and Cahill Gordon & Reindel LLP—served as legal counsel in guiding the complex, multi-party transaction.

To finance the acquisition, Talen plans to issue $3.8 billion in debt and refinance certain existing obligations. As part of the deal, Talen will also acquire equity interests in the Guernsey facility from mid-market infrastructure funds managed by BlackRock subsidiary Global Infrastructure Partners.

“These acquisitions significantly strengthen Talen’s capacity to serve hyperscale data centers and large commercial off-takers with low-carbon, grid-supported power," said a Talen spokesperson. “The strategic location and advanced infrastructure of both plants allow us to meet the growing needs of 24/7 demand sectors.”

The power plants are part of the PJM Interconnection market, a key regional transmission organization in the U.S.

Talen was advised on the deal by RBC Capital Markets and Citi, with legal representation from White & Case LLP and Kirkland & Ellis LLP. Caithness Energy was represented by Paul Hastings LLP, while Global Infrastructure Partners was advised by Simpson Thacher & Bartlett LLP. RBC and Citi received legal counsel from Cahill Gordon & Reindel LLP.

Both Talen and Caithness leadership expressed strong support for the transaction. BlackRock declined to comment.

This move comes shortly after BlackRock’s announcement that its affiliated Blackstone Infrastructure and Real Estate funds will invest $25 billion in Pennsylvania’s data center and energy infrastructure sector.