May 19 (Reuters) - Blackstone Infrastructure will

acquire utility company TXNM Energy ( TXNM ) in an $11.5 billion

deal, including debt, as the investment firm bets on rising U.S.

electricity demand and a shift to cleaner energy sources.

Shares of TXNM rose 9.2% to $57.75 in premarket trading

after the New Mexico-based utility said on Monday the all-cash

deal from Blackstone Infrastructure valued it at $61.25 per

share, representing a nearly 15% premium based on the stock's

last close, according to LSEG data.

With U.S. power demand projected to reach record levels in

2025, driven by mounting energy needs of AI and cryptocurrency

data centers as well as increased residential and commercial

consumption, more companies are investing in utilities.

Utility NRG Energy said last week it would acquire some

power generation assets from energy infrastructure investment

firm LS Power in a deal valued at $12 billion.

Earlier this year, KKR and PSP Investments also bought a 20%

stake in American Electric Power's transmission network for

$2.82 billion.

Reuters reported last week that Blackstone was in talks to

buy the New Mexico and Texas-focused utility, citing people

familiar with the matter.

Blackstone, which manages $60 billion in infrastructure

assets, is betting that stable, regulated returns and high

capital needs in grid modernization make TXNM a long-term

investment fit.

The long-term capital from Blackstone is expected to help

TXNM meet its clean energy goals and electricity demand, while

maintaining grid reliability, the utility said.

It also expects to issue an additional $400 million of

equity before the Blackstone transaction is closed.

TXNM Energy ( TXNM ) provides electricity to 800,000 homes and

businesses in New Mexico and Texas, according to its website.

CEO Pat Collawn will step down upon closing of the

transaction, expected in the second half of 2026, and will be

succeeded by insider Don Tarry, TXNM said.

(Reporting by Tanay Dhumal in Bengaluru' Editing by Anil

D'Silva and Shinjini Ganguli)