Business & Tech

Massive $10B AI, Data Center Campus Coming To PA

What was once Pennsylvania's largest coal-fired power plant will become an enormous natural gas-powered data center.

The smokestacks and cooling towers of the former coal-fired Homer City Generating Station crumble in a planned demolition to make way for a new natural gas-fired power plant in Homer City, Pa., Saturday, March 22, 2025.
The smokestacks and cooling towers of the former coal-fired Homer City Generating Station crumble in a planned demolition to make way for a new natural gas-fired power plant in Homer City, Pa., Saturday, March 22, 2025. (AP Photo/Gene J. Puskar)

INDIANA COUNTY, PA — North America's largest natural gas-powered data center will be built in a $10 billion redevelopment of the former Homer City Generating Station that was demolished last month.

The project was announced Wednesday by an investor group that includes Homer City Redevelopment and Kiewit, one of the country's largest construction and engineering firms.

The former station, about 50 miles east of Pittsburgh, will have seven gas-fired turbines to power data centers with up to 4.5 gigawatts of electricity. Construction is expected to begin this year and power could begin flowing by 2027.

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According to the developers, key attributes and benefits of the project are expected to include:

  • Delivery of up to 4.5 gigawatts of power to support AI-driven hyperscale data centers, while reducing greenhouse gas emissions by 60–65 percent per megawatt hour compared to the former coal plant.
  • Sufficient generating capacity to serve multiple large data center customers and supply power to thousands of homes on the local grid.
  • Creation of more than 10,000 direct on-site construction-related jobs along with approximately 1,000 total direct and indirect permanent high-paying positions in technology, operations and energy infrastructure.
  • An initial capital investment projected to exceed $10 billion for power infrastructure and site readiness, with data center development to inject billions more, making the project the largest such investment in Pennsylvania’s history.

“This project will honor Homer City’s place in the proud history of Pennsylvania energy generation, while accelerating the state and local community’s ability to meet the needs of a rapidly shifting energy landscape," William Wexler, Homer City Redevelopment CEO, said in a release.

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"Alongside our best-in-class partners, we have been working tirelessly to ensure that Homer City’s transformation can happen as quickly and seamlessly as possible. Further, we are fully committed to maximizing the unprecedented level of economic opportunity this project represents not just for Indiana County, but for all of Pennsylvania and the Mid-Atlantic region of the country.”

The new plant would be the nation's third-largest power generation facility after the Grand Coulee hydroelectric dam in Washington and the new Plant Vogtle nuclear power plant in Georgia, according to federal data.

The Homer City Generating Station began operations in 1969, employing thousands and providing millions of customers with energy when in production. The power plant was permanently decommissioned in July 2023.

The Associated Press contributed reporting.

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