PUC: Data centers to cause nearly 19%-a-year jump in electric demand over next 5 years
The Pennsylvania Public Utility Commission (PUC) projects a nearly 19% annual surge in statewide industrial electricity demand over the next five years, primarily due to data centers. This increase is raising concerns about the state's power grid capacity and the need for careful planning. Specific developments, including land acquisitions by PPL Corp. and Blackstone Infrastructure for data center power plants, are underway in Lackawanna and Luzerne counties.
The Pennsylvania Public Utility Commission (PUC) forecasts a significant 18.56% average annual increase in industrial electricity demand across the state over the next five years, primarily driven by data centers. This projection, released in the annual Electric Power Outlook Report, indicates a fundamental shift from previously stable electricity needs, according to PUC Chairman Steve DeFrank, who stressed the importance of accurate forecasting and planning to reliably serve this growth while protecting consumers from unreasonable costs.
This surge in demand is particularly evident in the PPL Electric Utilities service territory, where industrial usage is expected to soar by an average of 51.05% annually through 2030, almost entirely due to anticipated large data centers. The Times-Tribune previously reported that a joint venture between PPL Corp. and Blackstone Infrastructure secured over 11 square miles in northern Lackawanna County, including land bordering a public drinking water source, to explore building at least two massive natural gas power plants for data centers. These acquisitions in Archbald, Carbondale, Carbondale Twp., Fell Twp., and Mayfield, totaling nearly 7,200 acres, are tied to filings for 2.25 gigawatts of new power generation in Lackawanna County. Additionally, PPL Corp.'s venture purchased over 500 acres in Luzerne County for $40.4 million, also filing for two natural gas power plants with identical outputs.
Lackawanna County has emerged as a hot spot with around 90 proposed data centers, some of which are currently tied up in litigation. The broader PJM Interconnection LLC region, which manages the electrical grid for Pennsylvania and a dozen other states, is also facing significant strain. PJM has attributed 30 of 32 gigawatts of forecasted electricity demand increases between 2024 and 2030 to data centers, leading to emergency orders from the U.S. Department of Energy to allow data centers to use backup generators. The PUC report highlights ongoing regional reliability challenges, as the PJM's anticipated reserve margin could fall below required levels by 2029, despite Pennsylvania's increasing generating capacity and significant investment in the regional transmission system.