Pennsylvania utility PPL expands advanced-stage data center pipeline to 31.8GW

PPL Corporation, a Pennsylvania-based electric utility, reported that its advanced-stage data center pipeline grew to 31.8GW in the second quarter, up from 28.3GW in the first quarter. The 3.5GW sequential increase underscores the accelerating pace of data center development across the utility's service territories, driven by surging demand from AI and cloud computing workloads.

During the company's Q2 earnings call, PPL said that of the 31.8GW pipeline, 11GW are backed by signed electrical service agreements, while 6.5GW are currently under construction. The utility also noted that two data centers under construction began taking utility service during the quarter, with load expected to ramp up to approximately 2GW by 2031.

“Signed data center agreements with PPL Electric Utilities increased for the tenth consecutive quarter to about 32 GW, an increase of 3.5GW from last quarter,” said Vince Sorgi, president and CEO of PPL. The sustained growth reflects the utility's strategic position in the PJM Interconnection market, where data center developers are racing to secure power capacity ahead of projected demand spikes.

In its Kentucky service area, PPL reported 13.7GW of potential load growth, with data center demand representing 11.6GW—an 800MW increase from the first quarter. “Of that pipeline, approximately 1.3GW is now supported by signed reimbursement agreements, up from approximately 900MW in the first quarter,” Sorgi added. The reimbursement agreements are designed to ensure that large-scale customers contribute to the infrastructure costs they drive, a model PPL has championed amid growing scrutiny of data center impacts on ratepayers.

Sorgi also commented on a recent executive order by Kentucky Governor Andy Beshear requiring data center companies to demonstrate they would not harm ratepayers or the environment. “It was good to see the order come out. We view it as fully consistent with the ratepayer protection principles that we’ve been championing and even the ratepayer protection pledge that we signed recently, where new large load customers should be supporting and paying for the infrastructure and the resources that are needed to serve them,” he said. “Importantly, the order did not prohibit or put a moratorium on data center development. It simply is reinforcing that we need to have customer protections built into the process, which, of course, we have built into our approach.”

Beyond its regulated utility operations, PPL reported progress on Invitium Energy, its joint venture with Blackstone Infrastructure focused on developing large-scale power generation to meet data center demand. The JV, which operates independently from PPL's regulated arm, now holds strategic land sites capable of supporting 8-14GW of new generation capacity. Additionally, more than 5GW of new combined-cycle gas turbine (CCGT) generation has been accepted in the PJM Interconnection queue, and the utility has secured more than 5GW of reservation agreements for CCGT turbines.

Sorgi noted that while the JV is advancing, the utility does “not expect the earnings contributions from the JV to be material through 2030.” The long-term outlook reflects the multi-year timelines involved in developing both generation assets and the transmission infrastructure required to connect them to data center loads.

PPL primarily serves the Pennsylvania market, delivering energy to more than 1.4 million customers across the state, in addition to its two subsidiaries in Louisville and Kentucky. The company's expanding pipeline highlights the growing interdependence between data center development and utility-scale power planning, as hyperscale and colocation operators seek reliable energy sources for their AI-driven expansions.