PPL and Blackstone data center joint-venture secures land as demand grows

PPL Corp's PPL joint-venture with Blackstone to build power plants for Big Tech data centers has secured land and is in discussions with potential customers, gas pipeline companies and turbine manufacturers, executives with the company said on Thursday.

U.S. electricity demand is surging to new heights from energy-intensive data centers needed for the expansion of artificial intelligence, raising reliability and cost concerns for power grids growing short on supplies.

"Meeting this unprecedented demand growth will require an unprecedented response and will require all market participants to be part of the solution," PPL CEO Vincent Sorgi said on an earnings call with investors.

On the call, PPL separately said that it was extending the life of retiring coal-fired power generation in Kentucky to meet growing electricity consumption.

PPL, a major electric utility company that primarily operates in Pennsylvania, announced the joint-venture earlier this month at an AI energy summit in Pittsburgh that was attended by U.S. President Donald Trump, giant technology companies and power industry executives.

Energy companies that previously only ran power lines are increasingly considering alternative options to ramp up power supplies, including by developing their own power plants.

Data center demand in PPL's territory has reached 14.5 gigawatts, equivalent to what could power all of the homes in the largest U.S. state of California.

PPL is also supporting state legislation in Pennsylvania that would allow fully-regulated utilities to own power generation, which is currently not allowed in the state.

The joint venture with Blackstone does not include PPL Electric utilities or its regulated subsidiaries.