MARA Holdings Acquires Long Ridge Energy for $1.5 Billion to Expand AI Data Center
MARA Holdings has agreed to acquire Long Ridge Energy & Power in a deal valued at approximately $1.5 billion, with the aim of expanding its AI data center capabilities. The acquisition includes a 505-megawatt combined-cycle gas plant in Ohio and over 1,600 acres of land, offering more than 1 gigawatt of power capacity for future AI and IT buildout.
The deal is expected to raise MARA's owned-and-operated power capacity by about 65% and expand its operating and development pipeline to roughly 2.2 gigawatts across various markets. MARA plans to start construction on an initial AI and critical IT buildout in the first half of 2027, with the first capacity targeted for mid-2028. The company does not expect to cut Long Ridge's current power supply to the PJM grid.
The acquisition is expected to add about $144 million of annualized adjusted EBITDA, and the deal is anticipated to close in the second half of 2026. MARA will also assume at least $785 million of debt, backed by a bridge loan. The seller, FTAI Infrastructure, saw its stock rise 12% in pre-market trading, while MARA's stock was up 3%.
The expansion into AI data centers is a significant move for MARA Holdings, as the demand for AI computing power continues to grow. The acquisition of Long Ridge Energy is a strategic step towards establishing MARA as a major player in the AI data center market. With the increasing adoption of AI and machine learning technologies, the need for powerful and efficient data centers is on the rise, and MARA is well-positioned to capitalize on this trend.
The deal highlights the growing importance of data centers in the technology industry, particularly in the context of AI and machine learning. As companies continue to invest in these technologies, the demand for data center capacity is likely to increase, driving growth in the industry. MARA's acquisition of Long Ridge Energy is a significant development in this space, and it will be interesting to see how the company's expansion into AI data centers unfolds in the coming years.