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Investing.com -- PPL Corporation (NYSE:PPL) stock rose 2.6% after the company announced a joint venture with Blackstone (NYSE:BX) Infrastructure to build natural gas generation facilities in Pennsylvania to support growing data center development.
The partnership aims to construct, own and operate new gas-fired, combined-cycle generation stations that will power data centers under long-term energy services agreements. PPL will hold a 51% stake in the joint venture, while Blackstone Infrastructure will own the remaining 49%.
The joint venture targets areas with significant data center interest and plans to build generation facilities atop the Marcellus and Utica shale basins with quick access to available gas pipeline capacity. The companies intend to enter into long-term energy service agreements that would shield them from merchant energy and capacity price volatility.
According to the announcement, PJM Interconnection has forecasted potential capacity shortages as early as the 2026-27 delivery year. Within PPL Electric Utilities’ service territory in Pennsylvania alone, data center interest has reached over 60 gigawatts of potential projects, with more than 13 GW in advanced planning stages.
"We’re excited to leverage the powerful expertise that PPL and Blackstone Infrastructure possess to bring much-needed new dispatchable generation online in Pennsylvania," said PPL President and CEO Vincent Sorgi.
Pennsylvania Governor Josh Shapiro welcomed the investment, stating it would "create real, good paying jobs and generate new revenue for our communities with investments that will drive economic opportunity to the commonwealth."
The joint venture does not include PPL Electric Utilities or PPL’s other regulated subsidiaries.
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