Private investment in America’s electric utilities is booming as the artificial intelligence revolution and the demand for massive data centers send shockwaves through local power grids and communities. From the sun-baked fields of New Mexico to the pine forests of Minnesota, private equity firms and Big Tech giants are pouring billions into utilities and infrastructure, reshaping how—and for whom—electricity is delivered.
According to The Independent, private investment firms are aggressively acquiring stakes in electric utilities that serve more than 150 million customers across the United States. This surge is driven by the explosive growth of energy-hungry data centers, a trend ignited by the late 2022 debut of OpenAI’s ChatGPT. Greg Brown, a finance professor at the University of North Carolina, summed up the motivation: “The reason is very simple: because there’s a lot of money to be made.”
BlackRock CEO Larry Fink made the firm’s ambitions clear in a July interview on CNBC, declaring, “Infrastructure is at the beginning of a golden age. We believe that there’s a need for trillions of dollars investing in infrastructure related to our power grids, AI, the whole digitization of the economy, and energy.”
The deals are stacking up. Blackstone is seeking regulatory approval to buy out the Public Service Company of New Mexico and Texas New Mexico Power Co., while Wisconsin regulators have already greenlit the buyout of Superior Water, Light and Power. Last year, Blackstone also acquired a 19.9% stake in Northern Indiana Public Service Co. But nowhere is the fight more intense than in Minnesota, where a proposed $6.2 billion buyout of Allete, parent company of Minnesota Power, has sparked a fierce debate that could set the tone for future utility takeovers.
The proposed deal would see a BlackRock subsidiary and the Canada Pension Plan Investment Board acquire Allete for $67 a share—a 19% premium. Minnesota Power, which serves 150,000 customers and manages a portfolio of coal, gas, wind, and solar power sources, is seen as a valuable prize. The potential for Google to build a data center in the region only raises the stakes, making ownership of Minnesota Power even more lucrative.
Supporters of the buyout, including building trades unions and the administration of Minnesota Governor Tim Walz, argue that BlackRock’s deep pockets will help the utility meet the state’s ambitious clean energy goals. Allete projects it will need $4.3 billion over five years for transmission and clean energy projects to comply with Minnesota’s requirement that utilities deliver 100% carbon-free electricity by 2040. The company insists that BlackRock’s ownership would not change its operations, strategy, or values, and that the buyout price will not impact electric rates.
But not everyone is convinced. The state attorney general’s office, industrial customers such as U.S. Steel and Enbridge, and consumer advocates are sounding the alarm. Karlee Weinmann of the Energy and Policy Institute put it bluntly: “It’s no secret that private equity is extremely aggressive in chasing profits, and when it comes to utilities, the profit motive lands squarely on the backs of ratepayers who don’t have a choice of who they buy their electricity from.”
Mark Ellis, a former utility executive turned consumer advocate, testified against the Minnesota Power buyout. He explained, “It’s just a matter of what’s the price and will the regulator approve it. The challenge is they’re not going to come up for sale very often.” He and others worry that private equity’s incentive is to maximize returns by pushing for higher capital investments—like new poles and wires—since regulators allow utility owners to earn around 10% returns on such spending.
The skepticism is shared by regulators. In July, administrative law judge Megan J. McKenzie recommended rejecting the BlackRock deal, citing the buyout group’s “intent to do what private equity is expected to do—pursue profit in excess of public markets through company control.” The Minnesota Public Utilities Commission staff echoed these concerns, warning that private investors could saddle Minnesota Power’s parent company with massive debts, borrow at low interest rates, and earn outsized profits if regulators grant generous returns. “For the big investors in private equity, this is a win-win,” the staff wrote. “For the ratepayers of the highly leveraged utility, this represents paying huge profits to the owners if the private equity ‘wins’ and dealing with a bankrupt utility provider if it loses—it is a lose-lose.”
Meanwhile, in rural Louisiana, the impact of Big Tech’s energy appetite is playing out in real time. As reported by KNOE, Meta (the company behind Facebook and Instagram) is building a $10 billion data center in Richland Parish—so large it covers the area of 70 football fields and will consume more power daily than the entire city of New Orleans at peak summer usage. To support this behemoth, Entergy agreed to construct three gas-powered plants producing 2,262 megawatts, with the total infrastructure bill topping $3 billion.
The Louisiana Public Service Commission approved Meta’s infrastructure plan in August 2025, touting added consumer protections. Yet, critical details remain shrouded in secrecy due to nondisclosure agreements. Consumer advocates and even some commissioners are frustrated by the lack of transparency. Mandy DeRoche of Earthjustice warned, “You can’t follow the facts, you can’t follow the benefits or the negative impacts that could come to the service area or to the community.”
Meta has agreed to fund about half the construction costs over 15 years but not the maintenance or operation of the new power plants. The company is also exempt from paying sales tax under a 2024 Louisiana law, a move the state acknowledges could result in “tens of millions of dollars or more each year” in lost revenue. Critics fear that if Meta withdraws or fails to renew its contract, the public could be left footing the bill for decades. All grid users are already expected to help pay for the $550 million transmission line serving Meta’s facility.
Locals in Richland Parish have mixed feelings. Some, like drywall business owner Trae Banks, welcome the economic boost and the promise of 500 new jobs. “We don’t come from a wealthy parish and the money is much needed,” Banks said. Others worry about a boom-and-bust cycle, rising housing costs, and displacement. Mayor Jesse Washington of nearby Delhi noted, “We have a lot of concerned people—they’ve put hardship on a lot of people in certain areas here. I just want to see people from Delhi benefit from this.”
States are scrambling to adapt. More than a dozen have moved to protect ratepayers from bearing the costs of powering data centers. Pennsylvania is drafting a model rate structure, New Jersey is studying the cost impacts, Oregon passed new legislation, and Texas implemented a “kill switch” law to reduce data center loads during emergencies.
As the AI and data center boom continues, the battle over who pays for America’s energy future—and who profits—shows no signs of cooling down. With billions at stake and communities caught in the crossfire, the outcome will shape not just utility bills but the very fabric of the nation’s digital and economic infrastructure.
