Expanded pipeline for PPL Electric's data center development increases by 32%, reaching 14 gigawatts
PPL Electric Utilities and Blackstone Infrastructure Advance Joint Venture for Data Center Power Plants
PPL Electric Utilities' unregulated joint venture with Blackstone Infrastructure is making steady progress in its mission to build gas-fired power plants for data centers in Pennsylvania.
The venture, owned 51% by PPL and 49% by Blackstone, has secured multiple land parcels and is in advanced discussions with potential customers, gas pipeline companies, and turbine manufacturers. They are developing front-of-the-meter natural gas combined-cycle generation stations, designed to provide dispatchable capacity aligned with data center demand.
Through long-term energy services agreements (ESAs), the joint venture aims to ensure revenue stability and mitigate merchant price risk. The strategically located plants are near the Marcellus and Utica shale basins to ensure efficient pipeline gas access, a move intended to alleviate grid constraints and supply the rapidly growing data center market in Pennsylvania.
As of mid-2025, the joint venture has interconnection agreements covering about 14 GW of data centers, an increase of 32% from three months ago. They also have a queued pipeline of 60 GW data center capacity in PPL’s territory.
The joint venture's goal is to meet the growing power needs of AI and data-driven economies in Pennsylvania. The project is in an advanced development stage, with land secured and partner negotiations underway, reflecting significant investment and infrastructure commitment.
Meanwhile, PPL Electric Utilities' residential sales dipped 0.5% in Pennsylvania in the second quarter, while weather-normalized sales at PPL's utilities in Pennsylvania and Kentucky grew 0.5% in the same period and were essentially flat over the previous 12 months. The decline in industrial sales was caused by one steel manufacturer in Pennsylvania and possibly weather in Kentucky, according to Joseph Bergstein, PPL's chief financial officer.
PPL Electric Utilities estimates it will need about 7.5 GW of new generation in the next five to seven years. They are optimistic that new natural gas plants can get built due to federal and state support for natural gas pipeline expansion and streamlined siting and permitting.
However, PPL sees real issues with solar developers being able to get their projects completed. The PJM Interconnection's interconnection queue has about 10 GW of new generation in Pennsylvania, with about 1.2 GW of dispatchable gas and nuclear generation, with the rest comprised of solar and batteries.
PPL supports pending legislation in Pennsylvania (H.B. 1272 and S.B. 897) that would allow regulated utilities to build and own generation to address a resource adequacy need. The PJM Interconnection's last two capacity auctions will increase customer bills by about $20 a month, without bringing new generation onto the grid, according to Sorgi.
PPL Electric Utilities, Blackstone Infrastructure, and their partners are working diligently to bring this project to fruition, aiming to provide reliable and efficient power to the growing data center market in Pennsylvania.
- The joint venture between PPL Electric Utilities and Blackstone Infrastructure, focusing on the energy sector, is developing front-of-the-meter natural gas combined-cycle generation stations for data centers, with an aim to secure revenue stability in the finance industry.
- TheData center power plants project by the joint venture, located near the Marcellus and Utica shale basins, will not only serve the rapidly growing energy demands of AI and data-driven economies in Pennsylvania, but also provide an opportunity for the finance sector to invest in the growing industry of data centers.
