AI boom drives plans for Pennsylvania data-center-only power plants, with 5 gigawatts reserved
An AI boom is driving plans for data-center-specific power plants in Pennsylvania, with Invitium Energy, a joint venture of PPL Corp. and Blackstone Infrastructure, reserving 5 gigawatts of combined-cycle gas turbines. This development raises environmental concerns due to reliance on fossil fuels, while politicians are responding to public opposition. Kentucky's Governor Beshear has signed an executive order requiring data center developers to prove no harm to ratepayers or air/water quality.
The demand for AI and cloud workloads is prompting significant power development plans, including dedicated power plants for data centers. In Pennsylvania, Invitium Energy, a joint venture between PPL Corp. and Blackstone Infrastructure, is poised to announce at least one major electricity deal for data centers within the next year.
Invitium has identified sites in Pennsylvania capable of hosting up to 14 gigawatts of new generation, secured reservations for over 5 GW of combined-cycle gas turbines, and entered approximately 5 GW of projects into PJM Interconnection's queue. These turbine reservations could translate to up to $15 billion in investment by 2032. While PPL holds a 51% stake, significant earnings are not expected until operations begin around 2031. However, the use of combined-cycle gas turbines raises environmental concerns due to emissions and local air pollution.
PPL President and CEO Vincent Sorgi stated that 11 GW of data center projects in PPL Electric's Pennsylvania pipeline already have service agreements designed to protect existing customers from increased costs. Meanwhile, public opposition to data centers is growing, prompting governmental action. Kentucky Governor Andy Beshear recently signed an executive order mandating data center developers to demonstrate that increased energy use will not harm residential ratepayers and requiring state officials to reject permits for projects that would degrade air or water quality. PPL also has substantial data center projects underway in Kentucky through its subsidiaries.