Talen Energy shares surged more than 23% to an all-time high on Friday after the independent power producer agreed to buy two combined-cycle gas plants for a net $3.5 billion. The company said the acquisitions are aimed at meeting soaring electricity demand from data-center operators and other large-load customers. The purchase covers the 1,029-megawatt Moxie Freedom Energy Center in Pennsylvania and the 1,875-megawatt Guernsey Power Station in Ohio, acquired from Caithness Energy and, in Guernsey’s case, BlackRock-managed funds. Together, the facilities will add almost three gigawatts of highly efficient capacity within the PJM Interconnection market. Talen forecasts the additional output will raise its 2026 adjusted core profit by more than 40% and increase free cash flow by a similar margin that year, accelerating to above 50% through 2029. Chief Executive Officer Mac McFarland said the deal gives the company "more than the equivalent of another Susquehanna plant" to serve data-center loads. Brokerages including UBS and J.P. Morgan said buying rather than building assets should let Talen capture AI-driven demand more quickly and at a discount to new-build costs. The Houston-based company plans to fund the acquisitions with roughly $3.8 billion of new secured and unsecured debt, aiming to cut leverage to 3.5 times or lower by the end of 2026 while maintaining a $500 million annual share-repurchase program. Both transactions are expected to close in the fourth quarter of 2025, subject to customary regulatory approvals from the Federal Energy Regulatory Commission and clearance under the Hart-Scott-Rodino Act.