PPL Pours Capital into PJM as Data Center Plans Grow

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

PPL expects growing energy demand from data centers in the PJM region will necessitate the development of more gas-fired and T&D capacity.

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Data Dominates the Agenda

PPL Corporation, an important energy provider on the PJM Interconnection, is building out its gas-fired power-generation capacity to meet the ever-growing demand from data centers--especially in Kentucky and Pennsylvania, which have emerged as investment hotspots for the company. Industrial Info Resources is tracking more than $7 billion worth of active and proposed projects from PPL, nearly half of which is attributed to grassroot projects.

Companywide, PPL plans to raise its base capital expenditures for 2027 through 2030 to $25 billion, which is $2 billion more than the 2026-29 plan. In Kentucky alone, the company's spending is set to increase from $2.3 billion in 2026 to $3.6 billion in 2027.

"Through 2032, additional capital investment opportunities could reach a total of $12 billion to $16 billion," in addition to the amount projected through 2030, said Vince Sorgi, the chief executive officer of PPL, in a quarterly earnings-related conference call. "This includes additional regulated generation investment in Kentucky required to meet continued increases in potential demand growth."

The increased spending in Kentucky is attributed largely to the proposed construction of a 645-megawatt (MW), natural gas-fired, combined-cycle (NGCC) turbine, subject to regulatory approval. But that approval could be a tough process: The Kentucky Public Service Commission (KPSC) has denied several requests from PPL in recent years to add new gas-fired capacity.

However, KPSC did grant a Certificate of Public Convenience and Necessity (CPCN) in October 2025 for the proposed Unit 6 at Mill Creek Power Station in Louisville, Kentucky, which also is a 645-MW, NGCC unit. Louisville Gas and Electric Company (LG&E), a PPL subsidiary, owns Mill Creek and is developing the project, which is set to follow the ongoing construction of the 621-MW Unit 5.

PPL expects Unit 5 will be completed sometime in the second half of 2027. Together, the two new units would nearly double capacity at Mill Creek, which has an operational output of at least 1,361.7 MW. Industrial Info Resources offers more information on the Mill Creek developments in its Global Market Intelligence (GMI) Power Plant and Project databases, where subscribers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and detailed project reports on Unit 5 and Unit 6.

Concurrent with the Mill Creek 6 approval, the KPSC granted a CPCN to PPL's proposed, 621-MW unit addition at the E.W. Brown Power Station in Harrodsburg, Kentucky, which currently has an output of at least 1,457.6 MW. Subscribers can learn more from a detailed plant profile and project report.

By the Numbers

• More than $7 billion: Total investment value of active and proposed projects from PPL
• $25 billion: The company's base capital expenditures for 2027 through 2030
• $12 billion to $16 billion: Additional capital investment opportunities from 2031 to 2032

Keystone State Key to Growth

Sorgi announced in the earnings call that Invitium Energy, a joint venture between PPL Corporation (with a 51% stake) and Blackstone Infrastructure (49%), "signed a letter of intent (LOI) with Quality Technology Services (QTS) to be their generation solution provider in portions of Pennsylvania. Under that LOI, we have agreed with QTS on all key commercial terms for approximately 2 gigawatts (GW) of generation capacity for its Salem Township Data Center project, with a 20-year initial term allowing for multiple five-year renewals."

According to Industrial Info Resources data, the Salem Data Center, which is located in Luzerne County, comprises 12 buildings and more than $10 billion of investment value. Sorgi also noted PPL's large load tariffs "require data centers to cover the cost of serving them, so existing customers don't bear that burden." Subscribers can learn more from a plant profile and a detailed list of project reports.

Through Invitium, PPL has proposed the Luzerne County Power Station, which is designed to generate at least 1.5 GW for data centers in the area. The company also is looking into additional transmission and distribution (T&D) capacity to support the load growth.

Subscribers can learn more about the Luzerne County Power Station from a detailed project report.

PPL's net earnings for the third quarter were reported to be $367 million, a 15.4% increase from third-quarter 2025. Operating revenues stood at $2.5 billion, an 11.5% increase.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects from PPL.

Key Takeaways

• Regulated generation investment in Kentucky accounts for a significant share of PPL's investment plans.
• The company is building out its NGCC capacity in Kentucky, with several projects at various stages of approval.
• PPL has proposed the gas-fired Luzerne County Power Station to support data centers in eastern Pennsylvania.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).