If there was any lingering doubt about whether gas-fired generation plants are the hottest targets in the US power system, the recent flurry of deals likely extinguished it.

NRG Energy Inc. grabbed attention May 12 by agreeing to pay $12 billion, including debt, for 13 gigawatts of capacity — the equivalent of 13 nuclear reactors. Three days later, Vistra Corp. made its move with a $1.9 billion acquisition for 2.6 gigawatts of gas plants.

Today, Blackstone Infrastructure Partners agreed to acquire TXNM Energy Inc., owner of New Mexico’s largest utility, for about $5.7 billion.

This was already shaping up to be a bumper year for US power M&A. In January, Constellation Energy Corp. agreed to pay $16.4 billion for Calpine Corp. to create the country’s largest fleet.

Underlying it all is a boom in electricity demand driven by the rapid development of artificial intelligence. Gas offers greater reliability than renewables along with round-the-clock availability, making it a vital ingredient in satiating the thirst of new data centers.

Simply installing more gas capacity is problematic, with yearslong delays caused by a shortage of turbines. The cost of new plants is anywhere from $1.5 billion to $3 billion per gigawatt, according to Bloomberg Intelligence.

That makes the $700 million to $1.1 billion per gigawatt paid by NRG, Vistra and Constellation look like great value.

“It’s faster and cheaper to buy than build,” BI analysts Nikki Hsu and Gabriela Privetera wrote in a note last week.

Investors endorse the strategy so far. Constellation’s shares surged 25% the day it announced the Calpine takeover. NRG’s stock posted a 26% gain after its big reveal.

For blockbuster deals such as these — especially in the conservative power sector, which until recently has had little love from Wall Street — that type of euphoria is almost unprecedented.

As AI supercharges the markets, it’s further evidence that US power providers are trading more like Big Tech proxies.

–Brian Eckhouse, Bloomberg News