Talen Energy Surges to All-Time High After Acquiring Power Plants for Data Center Demand

Talen Energy has reached an all-time high of $330.18, up 24.3%, after acquiring two gas-powered plants for $3.5B to capitalize on growing demand for electricity in artificial intelligence data centers. The move is seen as a strategic investment to tap into the increasing power requirements for AI data centers.

Talen Energy (TLN) shares soared to an all-time high of $330.18 on July 18, 2025, following a significant acquisition announcement. The energy provider paid $3.5 billion to acquire two natural gas-powered plants, the Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio, in a move to meet growing demand from artificial intelligence (AI) data centers. This strategic investment underscores Talen's commitment to capitalizing on the increasing power requirements for AI data centers.

The acquisition was well-received by analysts, with Jefferies raising their price target on Talen stock to $380 from $326, describing the deals as "highly accretive & strategic." The move is expected to be immediately accretive to free cash flow per share by over 40% in 2026 and over 50% through 2029 [1]. Talen's CEO Mac McFarland noted that the acquired plants add "more than the equivalent" of another Susquehanna plant to the company's platform [2].

The Moxie Freedom Energy Center in Pennsylvania, with approximately 1 gigawatt of capacity, is located near Talen's Susquehanna nuclear plant and ties into the same substation. The Guernsey station in Ohio would serve the buildout of data centers by tech giants in the state [2]. The average buying price of the two plants is about 53% of the cost of building new turbines, according to analysts at brokerage Evercore ISI [3].

The acquisition comes just days after President Donald Trump announced a $92 billion commitment to support the growth of AI data centers and their energy sources [1]. This strategic move positions Talen Energy as a key player in the growing AI data center market, as energy demand is expected to increase significantly with the advancement of AI technology.

References:
[1] https://finance.yahoo.com/news/talen-energy-stock-soars-over-164312743.html
[2] https://seekingalpha.com/news/4468983-talen-energy-hits-all-time-high-after-buying-power-plants-to-feed-ai
[3] https://www.bloomberg.com/news/articles/2025-07-17/talen-to-buy-two-us-gas-fired-power-plants-for-3-8-billion