Expanded pipeline for PPL Electric's data center development grows by 32%, reaching 14 gigawatts in advance stages
In a significant move towards addressing the growing energy demands of data centers, PPL Corporation and Blackstone Infrastructure have officially formed a joint venture as of mid-July 2025. The aim of this unregulated partnership is to build, own, and operate natural gas-fired combined-cycle power plants in Pennsylvania, specifically to serve data centers under long-term energy services agreements (ESA).
The joint venture, which holds a 51% stake each, has been established with a focus on front-of-the-meter gas plants strategically located over the Marcellus and Utica shale basins. This location will leverage existing pipeline capacity and meet the growing power demand from data centers, including large AI workloads.
The venture has already secured several land parcels for the new generation buildout and is actively engaging with hyperscalers, landowners, natural gas pipeline companies, and turbine manufacturers. Negotiations are underway to secure long-term contracts to stabilize revenue and reduce market risk.
The initiative is expected to help Pennsylvania and the PJM grid address a projected 6 GW shortfall and enable economic development tied to data center growth. The joint venture aims to deliver utility-grade reliability with private investment flexibility and reduce interconnection delays by geographic site selection, helping meet commissioning targets quickly.
Meanwhile, PPL Electric Utilities' data center pipeline, operating separately but presumably coordinated with the joint venture's goals, has grown substantially, indicating rising demand for energy infrastructure supporting data centers in Pennsylvania. The cost of building a gas-fired combined cycle power plant, according to industry analyst Sorgi, is approximately $2.2 million to $2.5 million per MW.
PPL Electric Utilities expects its data center load to grow from 800 MW in 2026 to 14.4 GW in 2034. The company also anticipates its utilities in Kentucky, Pennsylvania, and Rhode Island will spend $20 billion in infrastructure improvements from 2025 to 2028, resulting in average annual rate base growth of 9.8%.
However, there are real issues with solar developers being able to get their projects completed, according to Sorgi. Despite this challenge, PPL Electric Utilities has agreements to interconnect approximately 14 GW of data centers in its Pennsylvania service territory.
PJM's interconnection queue in Pennsylvania has about 10 GW of new generation, with about 1.2 GW of dispatchable gas and nuclear generation, and the rest comprised of solar and batteries, according to Sorgi.
Notably, PPL supports pending legislation in Pennsylvania - H.B. 1272 and S.B. 897 - that would allow regulated utilities like PPL Electric Utilities to build and own generation to address a resource adequacy need. The bills would also encourage utilities to enter into agreements with independent power producers to help "derisk" their new generation investments.
In the second quarter of 2025, residential sales dipped 0.5% in Pennsylvania, and industrial sales fell 2.4% in Pennsylvania and 2.1% in Kentucky. However, weather-normalized sales at PPL's utilities in Pennsylvania and Kentucky grew 0.5% in the second quarter and were essentially flat over the previous 12 months.
In conclusion, the joint venture between PPL Corporation and Blackstone Infrastructure is fully established, actively advancing project development and contracting to support the rapidly expanding data center energy demand in Pennsylvania. The partnership aims to deliver reliable power while minimizing interconnection delays and market risks, contributing to the economic development of the region.
The joint venture, comprising equally owned stakes by PPL Corporation and Blackstone Infrastructure, ventures into the energy sector, focusing on natural gas-powered generation. This move coincides with the financial sector, as the partnership aims to minimize market risks and stabilize revenue through long-term contracts. The strategic location of these front-of-the-meter gas plants in the Marcellus and Utica shale basins, rich in existing pipeline capacity, is designed to serve the burgeoning power demand from data centers, including large AI workloads, within the industry.
