PPL, Blackstone Create Joint Venture to Supply Gas-fired Power for Data Centers

Building on President Trump’s visit to and promise made in Pennsylvania earlier this week to release about $90 billion to invest in energy infrastructure to support U.S. growth plans for artificial intelligence (AI), electric utility owner PPL Corp. and private equity-based Blackstone Infrastructure announced a joint venture around gas-fired generation to power data centers.

In fact, Blackstone and PPL announced the joint venture at Carnegie Mellon University in Pittsburgh in the same Pennsylvania Energy and Innovation Summit where President Trump appeared and promoted baseload power to enable the U.S. push to hold reign as the top AI technology nation.

The long-term agreement aims to develop front-of-the-meter generation powered by natural gas from the Marcellus and Utica shale formations which sit below the surface of Pennsylvania, Ohio and West Virginia.

"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 in a statement.

The U.S. is the world’s top producer of shale gas, and the joint venture could connect into available gas pipeline capacity within the region. The power generation plants would be located strategically to target areas of data center construction interest.

Hyperscale data center developers and AI-driven technology firms are seeking a vast expansion in baseload power generation to meet an anticipated 75 GW to 125 GW in digital infrastructure load growth. In turn, the buildout of gas-fired power capacity will attract data center commitment to the region, according to the announcement by both companies.

The PPL-Blackstone joint venture already has engaged with landowners, natural gas pipeline companies and turbine manufacturers for the new generation buildout. PPL owns 51% of the joint venture interest, with Blackstone Infrastructure owning 49%. The parties will share joint venture expenses and distributions. The joint venture does not include PPL Electric Utilities or PPL's other regulated subsidiaries.

"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, 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."

Eastern U.S. grid operator PJM Interconnection expects 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 most resources in PJM's interconnection queue being intermittent with historically low completion rates, new solutions are required, the companies say.

At the same time, the president was appearing with U.S. Sen. Dave McCormick, R-Pennsylvania, and others at the inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University. Once known as “Steel City” due to its reliance on that industry, Pittsburgh has evolved into a technology and financial services hub in western Pennsylvania.

Natural gas production from the shale plays such as Marcellus and Utica accounts for close to 80 billion cubic feet per day, nearly double the shale gas output of 10 years earlier, according to the federal Energy Information Administration. The shale revolution has elevated the U.S. into a current role as the world’s largest exporter of liquified natural gas (LNG).

Power Demand from Data Centers

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