Consumer groups say proposals by BlackRock and Blackstone to buy energy companies in Minnesota, New Mexico and Texas could hurt residents.

Large Wall Street investment firms are moving to acquire U.S. utility companies in an effort to benefit from the rising demand for electricity from data centers. But the deals are increasingly being contested by consumer groups who say they will lead to higher energy costs for residents.

BlackRock, the world’s largest asset manager, last year proposed buying Minnesota Power, a utility that owns several power plants and thousands of miles of power lines that could help technology companies secure energy for their data centers.

But a state administrative law judge recommended late Tuesday that Minnesota utility regulators deny the proposed acquisition sought by BlackRock’s Global Infrastructure Partners division and the Canada Pension Plan Investment Board. The utility provides power to 150,000 residential and business customers, largely in northern Minnesota, including Duluth and