From Coal to Data: Pennsylvania Plant to Become $10B Gas-Powered Data Center Campus
Key Ideas
  • Former coal-fired power plant in Pennsylvania to be transformed into a $10 billion natural gas-powered data center campus to meet the energy demands of Big Tech companies.
  • The project will include seven gas-fired turbines generating up to 4.5 gigawatts of electricity, making it the nation's largest gas-fired power plant.
  • Construction is set to start this year, with electricity production expected to begin by 2027, marking the largest capital investment in Pennsylvania.
  • The site already has critical infrastructure in place and can potentially supply electricity to the wider power grid, with the turbines capable of running on a hydrogen blend.
The former Homer City Generating Station in Homer City, Pennsylvania, which was once the state's biggest coal-fired power plant, is set to undergo a massive transformation. It will be converted into a $10 billion natural gas-powered data center campus by an investor group named Homer City Development. The project aims to cater to the growing energy needs of Big Tech companies for artificial intelligence and cloud computing applications. The data center campus will host seven gas-fired turbines that can produce up to 4.5 gigawatts of electricity, equivalent to powering around 3 million homes. This initiative is expected to be the nation's largest gas-fired power plant and the third-largest power generation facility in the country. Construction is slated to commence this year, with operations projected to start by 2027, making it the most significant capital investment ever in Pennsylvania. The site already possesses essential infrastructure from the decommissioned coal plant, including transmission lines, substations, and water access. Additionally, the project could potentially provide electricity to the broader power grid, with the turbines designed to operate on a hydrogen blend. The developers were granted a $5 million state grant to extend a gas line to the property, given its proximity to the Marcellus Shale natural gas reservoir. The announcement comes in the wake of the rise in demand for computing power following the launch of OpenAI's ChatGPT, leading Big Tech firms to seek new energy sources. This trend has reignited interest in constructing new gas-fired plants, nuclear reactors, and has raised concerns about electricity shortages. The project signifies a shift towards cleaner energy sources and economic development for the region.
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