PPL enters joint venture to build natural gas power generator

To meet what they said is a growing need, PPL Corporation of Allentown and Blackstone Infrastructure are tapping into natural gas. 

The two companies announced that they have formed a joint venture to build, own and operate new gas-fired, combined-cycle generation stations to power data centers under long-term energy services agreements (ESA).  

“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 in a way that directly supports economic development and large load customer needs, helps to mitigate rising electricity prices for energy consumers, and delivers increased value for shareowners without traditional merchant power risk,” said PPL President and CEO Vincent Sorgi. 

The joint venture seeks to develop power generation that sits atop the Marcellus and Utica shale basins and targets areas of significant data center interest. 

“We are excited to partner with PPL to develop generation projects that will help Pennsylvania, and PJM, meet the growing demand for power driven by the digitization of the economy,” said Sebastien Sherman, senior managing director at Blackstone Infrastructure. “Blackstone Infrastructure has a proven track record and commitment to long-term partnerships, and we look forward to working with PPL to power data centers across Pennsylvania and the broader PJM service territory.” 

The joint venture is actively engaged with landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels. However, no ESAs with hyperscalers have been signed to date. PPL owns 51% of the joint venture interest, with Blackstone Infrastructure owning 49%.  

In a press release, the firms noted that the PJM Interconnection has forecasted the potential for capacity shortages as early as 2026-27.  

With surging demand from data centers, increasing retirements of aging generation facilities, they said they believe new solutions are needed now. 

Within PPL Electric Utilities’ service territory in Pennsylvania alone, data center interest has reached over 60 gigawatts (GW) of potential projects, with over 13 GW in advanced stages of planning.  

If all 13 GW come online, PPL estimates a 6 GW generation shortfall in PPL Electric Utilities’ service territory in the next five to six years.