PPL Corporation and Blackstone Infrastructure have established a new joint venture to develop natural gas-fired combined-cycle generation in Pennsylvania, targeting the fast-growing energy demands of the data center sector. Announced at the Pennsylvania Energy and Innovation Summit, the partnership aims to enter long-term energy service agreements (ESAs) with hyperscale operators, offering a regulated-like risk structure without exposure to volatile merchant pricing.
The venture will focus on front-of-the-meter generation near the Marcellus and Utica shale formations, tapping into existing gas pipeline infrastructure and aligning with regions showing over 60 GW of potential data center interest. PPL and Blackstone have secured multiple land parcels and are in talks with pipeline operators and turbine suppliers, although no ESAs have been signed yet. PPL will hold a 51% stake in the venture, which does not involve its regulated utility subsidiaries.
The move comes amid warnings from PJM Interconnection about possible capacity shortages as early as 2026-27, driven by surging data center demand and retiring dispatchable generation. PPL projects that just the 13 GW of advanced-stage data center projects in its territory could create a 6 GW generation shortfall, requiring up to $15 billion in new power infrastructure. Pennsylvania Governor Josh Shapiro endorsed the initiative, calling it a model for economic development tied to energy resilience and digital infrastructure growth.
- Joint venture to build new gas-fired power for data centers in Pennsylvania
- 51/49 ownership split between PPL and Blackstone Infrastructure
- Targeting long-term ESAs to avoid merchant market exposure
- PPL sees 6 GW shortfall if 13 GW of data centers go live
- No ESAs signed yet, but land and infrastructure negotiations are underway
“We’re excited to leverage the powerful expertise that PPL and Blackstone Infrastructure possess to bring much-needed new dispatchable generation online in Pennsylvania to match new data center load,” said Vincent Sorgi, President and CEO of PPL Corporation.
