PA’s largest coal plant to become natural gas-fueled data center campus

• A $10 billion natural gas-powered data center campus is on track to replace the former Homer City coal plant in Pennsylvania. It marks what has been called the largest capital investment in the state’s history. The site will generate up to 4.5 gigawatts of electricity to power AI and cloud computing operations.
• This new facility will become the largest gas-fired power plant in the U.S. and the third-largest power generation site overall. Construction should begin in 2025 with operations expected by 2027.
• The site offers redevelopment advantages due to its existing infrastructure, including access to transmission lines, substations, and water. Following market and regulatory pressures, the coal plant closed, and the site now offers redevelopment advantages.

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What was once Pennsylvania’s largest coal-fired power plant is now on track to become a natural gas-powered data center campus. Officials said the $10 billion project, announced Wednesday, April 2, is expected to be the largest capital investment in the state’s history. As plans progress, it could also require additional funding.

Why is Pennsylvania investing in this project?

This initiative plans to repurpose the site of the retired Homer City Generating Station, located about 50 miles east of Pittsburgh, Pennsylvania. Developers said the new facility will house seven gas-fired turbines that can produce up to 4.5 gigawatts of electricity, enough to power approximately three million homes.

That level of energy production is essential for the incoming data center campus to support artificial intelligence and cloud computing applications. Data centers are known for their major electricity demands, with some using as much power as a small city.

How will this planned facility compare to others nationwide?

Once completed, the facility will become the largest gas-fired power plant in the U.S. and the third-largest power generation site nationwide. Construction is on track to begin sometime in 2025, with energy production expected to start by 2027.

What happened to the old coal plant?

The project follows the demolition of the cooling towers and smokestacks at the Homer City Generating Station last month. The coal plant shut down in 2023 after 54 years in operation and faced growing challenges in recent years. They include competition from lower-cost natural gas, milder winters reducing energy demand, rising coal prices and tighter environmental regulations.

However, the location is strategically advantageous for redevelopment due to its existing infrastructure. That infrastructure includes substations, water access and transmission lines connecting the Mid-Atlantic and New York power grids.