Former SW Pa. Coal-Fired Power Plant to Become Data Center Campus

The rubble from the demolition of part of the former Homer City power plant in Indiana County hasn’t even been fully cleared yet, but already plans are in place for a huge AI data center campus on the site.

Homer City Redevelopment recently announced that it planning to develop a 3,200-acre, natural-gas powered data center campus at the site of what was previously the largest coal-burning power plant in Pennsylvania. The announcement is just the latest in a string of new data center projects being planned in Pennsylvania, at a time when the electric grid is struggling to adapt and meet the increasing demand.

On the heels of that announcement, Liberty Energy Inc. announced it has formed a strategic alliance with Imperial Land Corp. and Range Resources to develop a natural-gas fired power plant in the Fort Cherry Development District in Washington County. The power facility will serve as “a catalyst for attracting data centers and industrial operations seeking long-term, reliable, energy-efficient solutions,” a release states.

The Homer City power generation project will generate up to 4.5 gigawatts (GW) of electricity, which would rival some nuclear reactors and make it the largest gas-fired plant in the U.S. A press release noted that by building on a former power generation site, much of the critical infrastructure for the project is already in place including transmission lines connected to the PJM and NYISO power grids, substations and water access.

Construction of the $10 billion project is expected to begin this year and begin producing power by 2027. The release indicates that the generating capacity will be used by multiple large data center customers, as well as to supply power to the regional electric grid. PJM Interconnection is the regional grid operator for the Mid-Atlantic region, including Pennsylvania, while NYISO oversees the power system in New York.

Seven high-efficiency, hydrogen-enabled, gas-fired turbines will use an abundant natural gas produced in this region’s Marcellus Shale play. The press release indicates that the project will help address a growing energy shortage as electric demand from data centers, electric vehicles, and continued electrification continues to increase. PJM has been issuing warnings about the tightening power supply, as fossil-fuel fired power plant continue to retire.

The proposed power generation facility at Fort Cherry will be built on property owned by Imperial Land Corp. that is being developed into an industrial park and use natural gas from wells developed by Range Resources, one of the largest producers in this region. The release does not provide details of the size or time frame for the facility, but a report from the Pittsburgh Business Times indicates it will initially produce about 25 megawatts of electricity that could scale up to 1 GW depending on demand.

Data center operators have been on the hunt for locations that have available around-the-clock energy. Pennsylvania is an energy exporter, producing more electricity than it uses and sending it to other states. Because of its readily available natural gas supply, more interest has recently been developing here.

The Homer City Generating Station met the same fate as a number of other coal-fired power plants, being decommissioned as natural gas-fired plants took their place as more economical, lower-emitting replacements. The power plant began operations in 1969 but was retired in 2023. Gas-fired power plants produce about 50% less CO2 emissions than coal-fired plants. Coal accounted for just a 14% share of PJM’s energy supply in 2023, down from 44% a decade earlier.

Construction of the new power plant is expected to create about 10,000 construction-related jobs, and about 1,000 permanent jobs for the region.