PPL Corporation and Blackstone Infrastructure create joint venture to build natural gas generation in Pennsylvania in support of data center development
PPL Corporation (NYSE: PPL) and Blackstone Infrastructure have announced a strategic joint venture to construct and operate new gas-fired, combined-cycle generation stations in Pennsylvania. The venture, owned 51% by PPL and 49% by Blackstone, will focus on powering data centers through long-term energy services agreements (ESAs).
The initiative addresses PJM Interconnection's forecasted capacity shortages starting 2026-27. Within PPL Electric Utilities' service territory, data center interest has reached over 60 GW of potential projects, with 13 GW in advanced planning. PPL estimates a 6 GW generation shortfall in the next 5-6 years, representing approximately $15 billion in investment needs.
PPL Corporation (NYSE: PPL) e Blackstone Infrastructure hanno annunciato una joint venture strategica per costruire e gestire nuove centrali a gas a ciclo combinato in Pennsylvania. La società, partecipata per il 51% da PPL e per il 49% da Blackstone, si concentrerà sull'alimentazione di data center tramite accordi di servizi energetici a lungo termine (ESA).
L'iniziativa risponde alle previsioni di carenza di capacità di PJM Interconnection a partire dal 2026-27. Nel territorio servito da PPL Electric Utilities, l'interesse per i data center ha superato i 60 GW di potenziali progetti, con 13 GW in fase avanzata di pianificazione. PPL stima un deficit di generazione di 6 GW nei prossimi 5-6 anni, che richiederà investimenti per circa 15 miliardi di dollari.
PPL Corporation (NYSE: PPL) y Blackstone Infrastructure han anunciado una empresa conjunta estratégica para construir y operar nuevas centrales de ciclo combinado a gas en Pensilvania. La empresa, propiedad en un 51% de PPL y 49% de Blackstone, se centrará en suministrar energía a centros de datos mediante acuerdos de servicios energéticos a largo plazo (ESA).
La iniciativa aborda las previsiones de déficit de capacidad de PJM Interconnection a partir de 2026-27. En el territorio de servicio de PPL Electric Utilities, el interés en centros de datos ha superado los 60 GW de proyectos potenciales, con 13 GW en planificación avanzada. PPL estima un déficit de generación de 6 GW en los próximos 5-6 años, representando una necesidad de inversión de aproximadamente 15 mil millones de dólares.
PPL Corporation (NYSE: PPL)와 Blackstone Infrastructure가 펜실베이니아에 새로운 가스 연료 복합 사이클 발전소를 건설하고 운영하기 위한 전략적 합작 투자를 발표했습니다. 이 합작 투자는 PPL이 51%, Blackstone이 49%를 소유하며, 장기 에너지 서비스 계약(ESA)을 통해 데이터 센터에 전력을 공급하는 데 중점을 둘 예정입니다.
이 사업은 PJM 인터커넥션의 2026-27년부터 예상되는 용량 부족 문제를 해결하기 위한 것입니다. PPL Electric Utilities 서비스 지역 내에서 데이터 센터에 대한 관심이 60GW 이상의 잠재 프로젝트로 늘었으며, 13GW는 고급 계획 단계에 있습니다. PPL은 향후 5-6년 내에 6GW의 발전 부족을 예상하며, 이는 약 150억 달러의 투자 필요성을 의미합니다.
PPL Corporation (NYSE : PPL) et Blackstone Infrastructure ont annoncé une coentreprise stratégique pour construire et exploiter de nouvelles centrales à cycle combiné au gaz en Pennsylvanie. La coentreprise, détenue à 51 % par PPL et 49 % par Blackstone, se concentrera sur l'alimentation des centres de données via des accords de services énergétiques à long terme (ESA).
Cette initiative répond aux prévisions de pénurie de capacité de PJM Interconnection à partir de 2026-27. Dans la zone desservie par PPL Electric Utilities, l'intérêt pour les centres de données a dépassé 60 GW de projets potentiels, avec 13 GW en phase avancée de planification. PPL estime un déficit de production de 6 GW dans les 5 à 6 prochaines années, nécessitant environ 15 milliards de dollars d'investissements.
PPL Corporation (NYSE: PPL) und Blackstone Infrastructure haben ein strategisches Joint Venture zur Errichtung und zum Betrieb neuer gasbetriebener Kombikraftwerke in Pennsylvania angekündigt. Das Joint Venture, das zu 51% im Besitz von PPL und zu 49% von Blackstone ist, wird sich auf die Stromversorgung von Rechenzentren durch langfristige Energieversorgungsverträge (ESA) konzentrieren.
Die Initiative adressiert die von PJM Interconnection prognostizierten Kapazitätsengpässe ab 2026-27. Im Versorgungsgebiet von PPL Electric Utilities hat das Interesse an Rechenzentren über 60 GW potenzieller Projekte erreicht, davon 13 GW in fortgeschrittener Planung. PPL schätzt einen Erzeugungsengpass von 6 GW in den nächsten 5-6 Jahren, was Investitionsbedarfe von rund 15 Milliarden US-Dollar bedeutet.
- Strategic joint venture structure with Blackstone Infrastructure provides strong financial backing and expertise
- Long-term energy services agreements (ESAs) will provide stable revenue streams with regulated-like risk profiles
- Positioned to address significant market demand with over 60 GW of potential data center projects
- Multiple land parcels already secured for generation buildout
- Access to significant gas pipeline capacity from Marcellus and Utica shale basins
- No ESAs with hyperscalers have been signed to date
- Construction dependent on successful execution of future ESAs
- Project success relies on pending legislation for utilities to own and operate generation
- Significant capital investment required to address the 6 GW generation shortfall
Insights
PPL's JV with Blackstone to build gas plants for data centers addresses PJM's looming capacity shortage while securing regulated-like revenue streams.
This strategic joint venture positions PPL Corporation to capitalize on the explosive data center growth in Pennsylvania while mitigating traditional merchant power risks. The 51/49 partnership structure with Blackstone Infrastructure allows PPL to maintain control while leveraging Blackstone's deep pockets and expertise in data center development.
The venture addresses a critical market need: PJM Interconnection forecasts potential capacity shortages by 2026-27, while PPL Electric's service territory alone has over 60GW of potential data center projects with 13GW in advanced planning. This creates an estimated 6GW generation shortfall in the next 5-6 years, representing approximately a $15 billion investment opportunity.
What makes this approach unique is the business model - using long-term energy services agreements (ESAs) with hyperscalers that provide regulated-like risk profiles, shielding the venture from merchant energy and capacity price volatility. These contracts create predictable revenue streams without traditional merchant power risk, essentially creating utility-like returns from non-utility assets.
The strategic positioning is exceptional - building generation atop the Marcellus and Utica shale basins with ready access to natural gas supply and targeting areas with significant data center interest. The venture has already secured multiple land parcels, engaged with gas pipeline companies and turbine manufacturers - all foundational steps before securing ESAs with hyperscalers.
While no ESAs have been signed yet, the pressing need for dispatchable generation in PJM creates strong market pull. However, this venture doesn't eliminate the need for broader solutions to address resource adequacy, including potential legislation allowing utilities to directly own generation again.
This partnership addresses the critical power supply bottleneck hampering data center growth in the Northeast. The 60GW of potential data center projects in PPL's service territory alone reflects the massive AI-driven compute demand that's outpacing available power infrastructure.
The hyperscaler market (AWS, Microsoft, Google, etc.) faces a significant dilemma: they need guaranteed power for their facilities, but grid constraints and generation retirements threaten expansion plans. By creating dedicated natural gas generation through ESAs, this venture offers a solution that bypasses lengthy interconnection queues and provides certainty for data center operators.
The timing is strategic - PJM's projected 2026-27 capacity shortages align precisely with when many AI-focused data centers need to come online. Without solutions like this, hyperscalers face years-long delays connecting to the grid, creating competitive disadvantages in the AI race.
The gas-fired combined-cycle generation approach offers the dispatchable power that data centers require, unlike the intermittent resources dominating PJM's interconnection queue. For hyperscalers, having dedicated power generation directly addressing their facilities provides operational certainty that grid-supplied power increasingly cannot.
While no ESAs have been signed yet, the venture's strategic land acquisitions near both gas supply and potential data center locations creates a compelling value proposition. The gas plants' proximity to the Marcellus and Utica shale basins ensures reliable fuel supply with minimal transportation costs - a critical consideration for long-term operational economics.
For hyperscalers evaluating locations for massive AI compute deployments, this power solution could make Pennsylvania significantly more attractive compared to other regions facing similar grid constraints but lacking coordinated generation solutions.
Venture to serve data center power needs through long-term energy supply agreements
"We're excited to leverage the powerful expertise that PPL and Blackstone Infrastructure possess to bring much-needed new dispatchable generation online in
The joint venture seeks to develop front-of-the-meter generation that sits atop the Marcellus and
"We are excited to partner with PPL to develop generation projects that will help
The joint venture plans to enter into long-term energy services agreements with regulated-like risk profiles that do not expose the companies to merchant energy and capacity price volatility. Construction of new natural gas plants will require the successful execution of ESAs with hyperscalers. The joint venture is actively engaged with landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels to enable this new generation buildout; however, no ESAs with hyperscalers have been signed to date. The joint venture team also looks forward to engaging with local stakeholders as plans develop.
PPL owns
"I'm an all-of-the-above energy governor, and we are working to produce even more energy here in
A creative solution to a growing need
PJM Interconnection has forecasted the potential for capacity shortages as early as the 2026-27 delivery year. With surging demand from data centers, increasing retirements of aging dispatchable generation, and the vast majority of resources in PJM's interconnection queue being intermittent with historically low completion rates, new solutions are needed now.
Within PPL Electric Utilities' service territory in
To avoid making significant existing resource adequacy concerns within PJM worse, the joint venture endeavors to build new, dispatchable generation to serve large-load data centers in
"At PPL, we are committed to developing creative solutions to some of the most pressing challenges we face in today's changing energy landscape," said Sorgi. "And in Blackstone Infrastructure, we've found a tremendous partner and long-term energy infrastructure investor that not only has deep expertise in data center development and power generation but also shares our passion to deliver America's AI dominance and to help address resource adequacy concerns within PJM."
About PPL
PPL Corporation, headquartered in Allentown,
About Blackstone Infrastructure
Blackstone Infrastructure is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. We seek to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Our approach to infrastructure investing is one that focuses on responsible stewardship and stakeholder engagement to create value for our investors and the communities we serve.
Forward-Looking Statements
Statements contained in this press release, including statements about the beliefs, expectations, estimates, future plans and strategies of PPL Corporation, including the potential impacts of the joint venture, PPL Corporation's financial position, capital investments and potential impacts to PPL Corporation's customer base, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from those described in the statements, including the ability of the parties to develop generation projects or enter into long-term energy services agreements with hyperscalers, utilities or other entities, which may not occur or may be delayed, or that any such transaction will ultimately be consummated. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments and other factors that we believe are relevant. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in our filings with the
Media Contacts: Ryan Hill, PPL Corporation 610-774-5997 | Paula Chirhart, Blackstone 347-463-5453 |
Financial Analysts Contact: Andy Ludwig, PPL Corporation 610-774-3389 |
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SOURCE PPL Services Corporation
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