The former Homer City Generating Station, once Pennsylvania’s largest coal-fired power plant, will transform into a massive natural gas-powered data center campus. Investor group Homer City Development announced the $10 billion project Wednesday, positioning it to meet surging electricity demands from AI and cloud computing companies.
Powering the AI Revolution
The site will house seven gas-fired turbines capable of generating 4.5 gigawatts—enough electricity for 3 million homes. When operational by 2027, it will become America’s largest gas-fired plant and third-largest power facility overall. “This represents the single largest capital investment in Pennsylvania history,” said State Senate Majority Leader Joe Pittman (R-Indiana).
Infrastructure Advantage
Developers highlight the site’s existing transmission lines connecting to major Northeast power grids, substations, and water access—legacy infrastructure from its coal plant days. A $5 million state grant will extend natural gas lines to the property, which sits atop the Marcellus Shale gas field. The turbines will initially run on natural gas but can transition to hydrogen blends.
AI’s Growing Energy Appetite
The project responds to skyrocketing power demands since ChatGPT’s 2022 debut. Tech giants are scrambling for reliable electricity, reviving interest in nuclear power and delaying retirement of aging plants. Notably, Pennsylvania’s shuttered Three Mile Island nuclear facility will reopen to power Microsoft data centers under a 20-year deal.
Environmental and Economic Crossroads
While demolition crews recently toppled Homer City’s iconic cooling towers—casualties of coal’s decline—the rebirth as a gas-powered data hub spotlights energy transition complexities. The development could supply excess power to regional grids, though specific tech company commitments remain undisclosed. Project costs may ultimately exceed initial $10 billion estimates as construction begins this year.
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