PPL has agreed to commercial terms to supply roughly 2 GW of generation to a QTS data center in Salem Township, Pennsylvania, a deal executed through Invitium Energy, the joint venture with Blackstone Infrastructure in which PPL holds a 51 percent stake.

Invitium JV Lands Commercial Terms for Gas-Backed Data Center Supply

The agreement was originally signed under a non-binding Letter of Intent, and the two teams are now working on a long-form agreement, though CEO Vince Sorgi declined to give a timeline on the call. The power mix for the project comprises two combined-cycle gas plants plus fuel cells and battery storage.

The fuel cells and batteries could come online as early as 2029, with the gas plants following in 2032 and 2033, according to the company. Sorgi suggested more generation could follow for QTS.

"If they look to expand on that Salem site and/or develop a different site, I would expect that we would be engaged in that process," he said.

Invitium is also in talks with other customers, and while Sorgi said it is "certainly possible" another announcement could come by year-end, he declined to commit to a schedule. "These projects help meet rising energy demand while strengthening the PJM grid and supporting long-term energy affordability," he said.

Advanced-Stage Pennsylvania Pipeline Climbs for an 11th Straight Quarter

The QTS deal sits alongside continued growth in PPL's Pennsylvania data center pipeline, which reached 35.3 GW of advanced-stage projects in the third quarter, up 3.5 GW from the second quarter and the utility's 11th consecutive quarterly increase.

Within the PPL Electric territory, load signed under electric service agreements rose by 300 MW to approximately 11.4 GW, with 8.5 GW of that under construction after a 2 GW quarter-on-quarter increase. PPL has connected two data centers and energized 300 MW of contracted load, which is expected to ramp to about 2 GW.

"As projects move from initial agreements to ESAs and then into construction, we gain greater visibility into the infrastructure and generation that will ultimately be needed to serve this load," Sorgi said during the third-quarter earnings call.

Kentucky Pipeline Expands Alongside Pennsylvania Growth

Growth was not limited to Pennsylvania.

PPL's economic development pipeline in Kentucky increased by 1GW to 14.7GW through 2032, including 12.8GW of data center load.

Capital Plan Lifted to USD 25 Billion with Large Load Customers Footing the Bill

To serve the rising demand, PPL raised its capital investment plan to USD 25 billion for 2027 through 2030, a USD 2 billion increase attributed to an additional natural gas combined-cycle unit in Kentucky.

The company emphasized that large load customers will fund most of the added investment. Its large load tariffs in Pennsylvania and Kentucky "require data centers to cover the cost of serving them," Sorgi said. "So existing customers don't bear that burden."

Election Outcomes Could Shift Projects Toward PPL's Territories

Asked about the recent midterm elections, Sorgi suggested results in other states may work in PPL's favor.

"I do think some of the election results could in some other states potentially have a chilling impact, which could drive some of those projects or future development projects to both Pennsylvania and Kentucky," he said.

Where PPL Operates

PPL primarily serves the Pennsylvania market, delivering energy to more than 1.4 million customers across the state, alongside its two subsidiaries in Louisville and the wider Kentucky region.