Talen Energy Stock Soars Over 20% on Purchase of 2 Plants in AI Power Move

Talen Energy (TLN) shares soared to an all-time high Friday after the energy provider said it’s buying two natural gas-powered plants for $3.5 billion, in a move to meet growing demand to support AI data centers.

The stock was up over 20% in recent trading above $326, on track to close at an all-time high, after setting an intraday record at $330.18 earlier in the session.

The deal gives Talen the Moxie Freedom Energy Center in Pennsylvania, owned by private energy producer Caithness Energy, and the Guernsey Power Station in Ohio, co-owned by Caithness and BlackRock (BLK).

Talen said the acquisition boosts its portfolio, and “enhances Talen’s ability to offer reliable, scalable, grid-supported and regionally diverse low-carbon capacity to hyperscale data centers and large commercial off-takers.” Talen noted that the deal is expected to be “immediately accretive to free cash flow per share by over 40% in 2026, and over 50% through 2029.”

The move also comes just days after President Donald Trump attended a summit in Pennsylvania, where he announced a $92 billion commitment to support growth of AI data centers and the energy sources to supply them.

Jefferies analysts on Friday raised their price target on Talen stock to $380 from $326, with the analysts calling it a “highly accretive & strategic acquisition.”

With Friday’s gains, Talen shares have added over 60% this year so far.