Data Centers' Need for T&D Fuels Blackstone's TXNM Acquisition

Researched by Industrial Info Resources (Sugar Land, Texas)--Blackstone Incorporated (New York, New York), one of the world's largest private equity firms and an emerging developer of data centers, aims to broaden its role in the U.S. Southwest energy market with its proposed acquisition of TXNM Energy Incorporated (Albuquerque, New Mexico), which offers power-generation and transmission and distribution (T&D) services to about 800,000 residential and business customers in New Mexico and Texas. Industrial Info is tracking more than $66 billion worth of active and proposed projects from Blackstone across the U.S., as well as more than $430 million worth of projects from TXNM.

Click on the image at right for a graph detailing the top 10 U.S. states for active and proposed projects from Blackstone, by total investment.

Public Service Company of New Mexico, a TXNM subsidiary, already is at work on at least one major T&D project: the multi-phase Mora Transmission Project, a 116-mile line that will connect Union and San Miguel counties in northeastern New Mexico. A nine-mile, $10 million segment from Grenville to Gladstone will originate at the Don Carlos Windfarm in Grenville to a substation in Gladstone, which will be connected to another substation via a 32-mile, $38 million segment from Gladstone to Springer.

From the substation in Springer, a 68-mile, $70 million segment to the Arriba Substation in Las Vegas, New Mexico, will allow the wind-generated energy to be distributed to larger swaths of the power grid. Full commercial operation of the Mora Transmission Project is targeted for early 2027, according to the New Mexico Renewable Energy Transmission Authority. Subscribers can read detailed project reports on the Grenville-to-Gladstone, Grenville-to-Springer and Springer-to-Las Vegas segments, and a detailed profile of the Don Carlos Windfarm.

For a full list of all active and proposed projects within the Mora development, subscribers can click here.

Formerly known as PNM Resources, TXNM Energy changed its name in 2024 to reflect its growing presence in Texas. The company says it has more than 550,000 customers in New Mexico and more than 280,000 customers in Texas.

While Blackstone does not have any active or proposed projects of its own in New Mexico, it has nearly $3 billion worth in Texas, about 80% of which is attributed to data center developments. It aims to become one of the leading providers of power to domestic data centers within the U.S., and recently acquired a power plant in northern Virginia's Loudon County, which is home to about 25% of U.S. data center capacity. For more information, see January 28, 2025, article - Blackstone Seizes Bigger Role in U.S. Data Center, AI Markets.

Quality Technology Services (QTS), a Blackstone subsidiary, has several projects under construction that are set to be completed toward the end of this year, including a $275 million fourth-phase expansion of its data center in Irving, Texas, to better serve Microsoft Corporation (Redmond, Washington). Later in 2026, a $275 million fifth-phase expansion is expected to wrap up. Subscribers to Industrial Info's GMI Industrial Manufacturing Plant and Project databases can learn more from a detailed plant profile and project reports for the fourth and fifth phases.

"After 25 years of flat electricity demand, the U.S. is experiencing a surge in demand from data centers," among other sources, Blackstone said in a recent press release. "The power grid has not been able to keep up, and wait times for new grid connections have increased to seven to 10 years in key data center markets. Blackstone is investing heavily in new generation and transmission infrastructure, but upgrading and modernizing the grid takes decades--not months or years."

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned projects across the U.S. from Blackstone or TXNM.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).