NRG Energy said on Monday it would acquire power generation assets from energy infrastructure investment firm LS Power in a deal valued at $12 billion, as the U.S. utility bets on surging electricity demand,

The roughly $12 billion acquisition would double the company’s generation capacity to about 25 gigawatts.

NRG Energy announced Monday plans to acquire 18 natural gas plants across nine states—including Texas—in a move aimed at powering the state’s rapidly rising energy demand. The $12 billion deal will double the company's power generation capacity,