PPL Corporation (PPL) and Blackstone Infrastructure have formed a joint venture to develop, own, and operate new gas-fired combined-cycle power plants, which will supply electricity to data centers under long-term energy service agreements or ESAs.
The initiative was announced at the Pennsylvania Energy and Innovation Summit. Targeting areas atop the Marcellus and Utica shale basins, the venture will leverage existing gas infrastructure to provide dispatchable power in response to surging electricity demands from hyperscalers and data center developments.
The plants will avoid traditional merchant energy risks by operating under regulated-style ESAs. While land has been secured and stakeholder engagement is underway, no contracts with hyperscalers have been finalized yet.
PPL will hold a 51% stake, and Blackstone will hold 49%, with shared expenses and returns. The venture excludes PPL's regulated subsidiaries. CEO Vincent Sorgi highlighted the venture as a strategic move to meet high-capacity data center demands, stabilize energy prices, and support Pennsylvania's economic development.
Pennsylvania Governor Josh Shapiro welcomed the investment, emphasizing the state's readiness to lead in energy, AI, and digital infrastructure. The partnership comes amid PJM Interconnection's warnings of possible power shortages by 2026-27 due to retiring generation and growing data center demand. PPL estimates a 6 GW shortfall in its service area if 13 GW of planned data centers go online, representing a potential $15 billion investment in new generation.
The venture underscores a broader call for legislative support enabling utilities to own generation assets and enter long-term contracts to secure future grid reliability.
PPL closed at $35.36, up 1.71%, and is trading slightly higher after hours at $35.40, an increase of 0.13% on the NYSE.
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