PPL, Blackstone Form JV for Pennsylvania Gas Power Plants

PPL Corporation and Blackstone Infrastructure have formed a joint venture to develop, own, and operate new gas-fired, combined-cycle power plants in Pennsylvania aimed at powering data centers through long-term energy services agreements (ESAs). This joint venture, with PPL owning 51% and Blackstone 49%, seeks to address an anticipated 6 GW electricity capacity shortfall in the region over the next five to six years, driven by the rapid expansion of data centers. The plants will be strategically located atop the Marcellus and Utica shale basins to ensure access to abundant natural gas supplies and pipeline infrastructure. While the venture has secured multiple land parcels and is actively engaging with landowners, pipeline companies, and turbine manufacturers, it has not yet signed any ESAs with hyperscalers, which are critical for project execution and revenue generation. The partnership aims to mitigate exposure to volatile energy prices by structuring ESAs with regulated-like risk profiles, supporting Pennsylvania's economic development and job creation. The success of this initiative depends on finalizing ESAs and potential legislative support to allow utilities to own and operate new generation capacity.