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Released November 07, 2025 | SUGAR LAND
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Written by Eric Funderburk for Industrial Info Resources (Sugar Land Texas)
Kentucky is experiencing a boom in hyperscale data centers, particularly in the Louisville area, and over the third quarter, which ended September 30, PPL saw expected data center demand in its Pennsylvania territory rise 40%, from 14.4 gigawatts (GW) to 20.5 GW.
PPL owns two subsidiary utilities in Kentucky: Louisville Gas & Electric (LG&E) (Louisville, Kentucky), which covers Louisville and 16 area counties, and Kentucky Utilities (KU) (Lexington, Kentucky), whose coverage includes Lexington, 77 Kentucky counties and five counties in Virginia. Last week, the Kentucky Public Service Commission (KPSC) gave approval to the utilities to construct 645-megawatt (MW) gas-fired turbines at two existing power plants, bringing about 1.3 GW of new gas-fired power to the state.
LG&E will head up the installation of one of the turbines at its Mill Creek generating station in southwest Louisville. LG&E already is installing one gas turbine at the plant, which has coal-fired units slated for retirement. LG&E had petitioned the KPSC to keep the coal-fired Unit 2 operating until 2031 until both gas turbines are installed, but the regulatory body denied the request.
Construction of the Mill Creek 5 gas-fired unit kicked off last year and is expected to be completed in 2027, adding about 620 MW of gas-fired power to the plant. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
Last week's KPSC approval paves the way for a second gas-fired unit, rated at 645 MW, to be installed at the plant, which LG&E says will be completed in 2031. Subscribers can click here to learn more.
Data center activity is picking up in the Louisville area, with one of the largest projects expected to kick off in the city next year. PowerHouse Data Centers' (McLean, Virginia) Louisville plans call for up to seven main data center buildings, potentially consuming 400-500 MW of power. Industrial Info expects the seventh and final building to be completed in 2029. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can learn more by viewing the related project reports.
PPL's other Kentucky utility, KU, will head up installation of another 645-MW gas-fired unit at the E.W. Brown Power Station in Harrodsburg, about 35 miles southwest of Lexington. The Brown station is unique among power stations in offering a variety of generation methods. Of three coal-fired units, one 412-MW unit continues to generate power. The Dix Dam on Herrington Lake provides 33 MW of hydroelectric generation, a solar array completed in 2016 provides 10 MW of power, and seven gas-fired turbines provide approximately 895 MW.
That gas-fired generation will be increased significantly with the addition of the new 645-MW turbine, which is expected to be completed in 2030. Subscribers can click here to learn more about the project.
To maneuver around the policies preventing PPL itself from owning generation, in July this year, PPL announced that it had formed a joint venture with capital firm Blackstone Infrastructure (New York, New York) to build gas-fired, combined-cycle generation in PPL's Pennsylvania service area. PPL holds a 51% interest in the venture, with Blackstone holding the remaining 49%. In its July announcement, the companies stated, "The joint venture is actively engaged with landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels to enable this new generation buildout," but noted that it had not yet signed any ESAs with anticipated hyperscale data centers that would set an initial project on the road to construction.
However, that electric service agreement may not be long in coming. Industrial Info is tracking a whopping $73 billion in potential data center construction in just the eastern half of the state, where PPL's coverage is. One of the largest of these is currently being built in Berwick, within PPL's service area, by Amazon Web Services (AWS). AWS has started construction on the first few buildings, but the complex could encompass up to 15 buildings by the time of its expected completion in 2033. Subscribers can learn more by viewing the related project reports.
While no official project announcement has been made yet from the joint venture, an initial project announcement from Industrial Info anticipates a potential 1.5-GW plant, which after securing necessary equipment, could begin turning dirt in 2028, resulting in a 2031 completion. Luzerne County, home to AWS' Berwick project, remains a prime area for potential development. Subscribers can click here for more details.
Key Takeaways
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 validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Utility PPL Corporation, like other U.S. power companies, has seen expected demand growth in its service territories rise dramatically, in large part because of construction of data centers. PPL is building natural gas-fired power generation in Kentucky and has formed a joint venture with Blackstone Infrastructure to do the same in Pennsylvania.Data Center Growth in PPL Territories
With service areas in eastern Pennsylvania, Kentucky, Rhode Island and Virginia, PPL Corporation (Allentown, Pennsylvania) is an important energy provider on the PJM Interconnection. The company is witnessing a surge in data center development within its coverage area and is making moves to build natural gas-fired power plants in both Kentucky and Pennsylvania, where data center construction is escalating.Kentucky is experiencing a boom in hyperscale data centers, particularly in the Louisville area, and over the third quarter, which ended September 30, PPL saw expected data center demand in its Pennsylvania territory rise 40%, from 14.4 gigawatts (GW) to 20.5 GW.
Meeting Demand in Kentucky
Earlier this year, PPL initiated moves in both states to increase power generation to feed these future power-hungry data center facilities. The company recently was successful in pushing new generation projects through Kentucky's regulatory process.PPL owns two subsidiary utilities in Kentucky: Louisville Gas & Electric (LG&E) (Louisville, Kentucky), which covers Louisville and 16 area counties, and Kentucky Utilities (KU) (Lexington, Kentucky), whose coverage includes Lexington, 77 Kentucky counties and five counties in Virginia. Last week, the Kentucky Public Service Commission (KPSC) gave approval to the utilities to construct 645-megawatt (MW) gas-fired turbines at two existing power plants, bringing about 1.3 GW of new gas-fired power to the state.
LG&E will head up the installation of one of the turbines at its Mill Creek generating station in southwest Louisville. LG&E already is installing one gas turbine at the plant, which has coal-fired units slated for retirement. LG&E had petitioned the KPSC to keep the coal-fired Unit 2 operating until 2031 until both gas turbines are installed, but the regulatory body denied the request.
Construction of the Mill Creek 5 gas-fired unit kicked off last year and is expected to be completed in 2027, adding about 620 MW of gas-fired power to the plant. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
Last week's KPSC approval paves the way for a second gas-fired unit, rated at 645 MW, to be installed at the plant, which LG&E says will be completed in 2031. Subscribers can click here to learn more.
Data center activity is picking up in the Louisville area, with one of the largest projects expected to kick off in the city next year. PowerHouse Data Centers' (McLean, Virginia) Louisville plans call for up to seven main data center buildings, potentially consuming 400-500 MW of power. Industrial Info expects the seventh and final building to be completed in 2029. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can learn more by viewing the related project reports.
PPL's other Kentucky utility, KU, will head up installation of another 645-MW gas-fired unit at the E.W. Brown Power Station in Harrodsburg, about 35 miles southwest of Lexington. The Brown station is unique among power stations in offering a variety of generation methods. Of three coal-fired units, one 412-MW unit continues to generate power. The Dix Dam on Herrington Lake provides 33 MW of hydroelectric generation, a solar array completed in 2016 provides 10 MW of power, and seven gas-fired turbines provide approximately 895 MW.
That gas-fired generation will be increased significantly with the addition of the new 645-MW turbine, which is expected to be completed in 2030. Subscribers can click here to learn more about the project.
Other Kentucky Project Approvals
In addition to the gas turbines, the KPSC also gave to go-ahead to for PPL to install a selective catalytic reduction (SCR) system for the 556-MW Unit 2 at the company's Ghent coal-fired power station in Carroll County. Installation is expected to both begin and end in 2027. (See project report.)The Pennsylvania Quandary: If You Can't Beat 'Em, Form a Joint Venture
Pennsylvania represents a more restrictive market for PPL, as the state's deregulated power market prevents the company, which primarily operates power transmission in the state, from owning generating assets there. The 20.5 GW of power that data centers are expected to require in PPL's Pennsylvania territory is really only the tip of the iceberg, as that figure represents data centers in advanced stages of planning that hold either an electric service agreement (ESA) or signed letter of agreement for power. According to remarks made by PPL Chief Executive Officer Vincent Sorgi at a recent conference call regarding third-quarter performance, another 70 GW of demand awaits in the queue, although it is unlikely that all of those potential projects would make it off the planning table.To maneuver around the policies preventing PPL itself from owning generation, in July this year, PPL announced that it had formed a joint venture with capital firm Blackstone Infrastructure (New York, New York) to build gas-fired, combined-cycle generation in PPL's Pennsylvania service area. PPL holds a 51% interest in the venture, with Blackstone holding the remaining 49%. In its July announcement, the companies stated, "The joint venture is actively engaged with landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels to enable this new generation buildout," but noted that it had not yet signed any ESAs with anticipated hyperscale data centers that would set an initial project on the road to construction.
However, that electric service agreement may not be long in coming. Industrial Info is tracking a whopping $73 billion in potential data center construction in just the eastern half of the state, where PPL's coverage is. One of the largest of these is currently being built in Berwick, within PPL's service area, by Amazon Web Services (AWS). AWS has started construction on the first few buildings, but the complex could encompass up to 15 buildings by the time of its expected completion in 2033. Subscribers can learn more by viewing the related project reports.
While no official project announcement has been made yet from the joint venture, an initial project announcement from Industrial Info anticipates a potential 1.5-GW plant, which after securing necessary equipment, could begin turning dirt in 2028, resulting in a 2031 completion. Luzerne County, home to AWS' Berwick project, remains a prime area for potential development. Subscribers can click here for more details.
Key Takeaways
- PPL Corporation is seeing the potential for substantial power demand growth across its Pennsylvania and Kentucky service areas, primarily coming from data centers.
- To help meet this demand, PPL will build two gas-fired units in Kentucky (where another unit already is underway) and has formed a joint venture with Blackstone Infrastructure to bring new gas-fired power into its Pennsylvania territory.
- Project approvals from the Kentucky Public Service Commission also included a selective catalytic reduction system at one of PPL's coal-fired plants.
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 validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
