Sept 15 (Reuters) - Blackstone said on Monday it

has agreed to buy a natural gas plant in Western Pennsylvania

for nearly $1 billion, as the investment firm bets on rising

U.S. electricity demand to power artificial intelligence

technologies.

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

2025, driven by data centers for AI and cryptocurrency

technologies, as well as higher residential and commercial

consumption.

The private equity funds affiliated with Blackstone Energy

Transition Partners will buy the Hill Top Energy Center, owned

by private investment firm Ardian. The 620-megawatt natural gas

plant began operations in 2021.

"The electricity infrastructure required to power the AI

revolution requires a tremendous amount of capital," Blackstone

executives Bilal Khan and Mark Zhu said, adding that the Hill

Top plant is well-positioned to support the boom.

The deal follows Blackstone's announcement in July that it

will invest over $25 billion to support Pennsylvania's digital

and energy infrastructure to power AI, it said.

Earlier this year, Blackstone said it would acquire TXNM

Energy ( TXNM ) in

an $11.5 billion deal

. In January, the asset manager also made an investment in

the Potomac Energy Center, a 774-megawatt natural gas power

plant in Virginia.