TXNM Faces Scrutiny in $11.5 Billion Blackstone Deal
Deal News | May 21, 2025 | EIN
Blackstone Infrastructure's plans to incorporate data centers into the New Mexico energy landscape are central to its proposed $11.5 billion acquisition of TXNM Energy. The selling agreement requires approval and input from various stakeholders, including state regulators and New Energy Economy, a clean power advocacy group. Previously, TXNM's sale to Avangrid collapsed after legal challenges. Current concerns focus on who will bear the cost of upgrading electrical infrastructure for new data centers. Blackstone has stated that these upgrades will be financed by data center companies themselves.
Sectors
- Infrastructure Investment
- Energy Utilities
- Data Centers
Geography
- United States - New Mexico – The acquisition involves TXNM Energy, which operates regulated utilities in New Mexico, making the region central to the regulatory and operational discussions.
Industry
- Infrastructure Investment – The acquisition of TXNM by Blackstone focuses heavily on infrastructure investment, particularly in electrical upgrades for data centers.
- Energy Utilities – TXNM is a holding company overseeing regulated utilities, a crucial part of the electricity supply chain and a focal point of the acquisition.
- Data Centers – As demand for energy from AI data centers grows, discussions about infrastructure and ownership are significant to the transaction's approval.
Financials
- $11.5 billion – Proposed acquisition price for TXNM Energy by Blackstone Infrastructure.
- $8.3 billion – The previous acquisition bid by Avangrid for TXNM Energy, ultimately abandoned.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Blackstone Infrastructure | Bidding Company | Company | A private equity group aiming to acquire TXNM Energy and capitalize on infrastructure needs in the data center sector. |
| TXNM Energy | Target Company | Company | A holding company for regulated utilities in New Mexico being acquired by Blackstone. |
| New Energy Economy | Stakeholder and Opposition | Charity | A clean power advocacy group that previously opposed TXNM's sale to Avangrid and now scrutinizes the Blackstone deal. |
| New Mexico Department of Justice | Regulatory Stakeholder | Government | State regulatory body involved in reviewing the TXNM-Blackstone acquisition. |
| Avangrid | Previous Bidding Company | Company | The U.S. unit of Spanish electric company Iberdrola, which formerly attempted to acquire TXNM. |