In an ambitious move to harness the escalating power demands of the tech industry, the owners of the former Homer City Generating Station in Pennsylvania announced plans to convert the site into a cutting-edge $10 billion natural gas-powered data center campus. Located approximately 50 miles east of Pittsburgh, this transformation is set to leverage the needs of major technology companies, specifically for artificial intelligence and cloud computing.
The new development, led by an investor group called Homer City Development, will see the installation of seven gas-fired turbines capable of producing up to 4.5 gigawatts of electricity. To put that into perspective, this is enough power to supply around 3 million homes. Once completed, it will become the largest gas-powered plant in the country and the third-largest power generation facility, trailing only behind the Grand Coulee hydroelectric dam in Washington and the new Plant Vogtle nuclear power plant in Georgia.
The undertaking marks an unprecedented economic investment in Pennsylvania, as highlighted by state Senate Majority Leader Joe Pittman, whose district contains Homer City. According to statements from the owners, construction is projected to commence this year, with electricity generation potentially beginning by 2027. The costs associated with site preparation and data center construction could surpass the stated $10 billion investment.
Many of the essential infrastructures from the now-closed Homer City power plant will be repurposed for the new campus, including existing transmission lines that connect to the broader mid-Atlantic and New York power grids, substations, and water sources. While the developers have indicated the facility’s potential to contribute electricity to the general power grid, specifics on data center clients or the exact share intended for the grid remain undisclosed.
Further financial support for the project includes a $5 million state grant for extending a gas line to the property. Notably, the site is strategically located above the Marcellus Shale natural gas reservoir and is close to significant interstate gas pipelines. Additionally, the turbines designed for the facility have the capability to operate on a hydrogen mix.
Recently, previous cooling towers and smokestacks, remnants of the coal plant that operated for 54 years until its closure in 2023, were demolished. Homer City Development cited various factors for the plant’s closure, including competition from less expensive natural gas, milder winter seasons, escalating coal costs, and stringent environmental regulations.
This venture arises amid a heightened demand for substantial computing power, triggered by the 2022 debut of OpenAI’s ChatGPT. Assisted by Microsoft’s data centers, the chatbot’s launch fueled a global surge in demand for AI and other data-intensive technologies, nudging tech companies to seek sustainable power alternatives.
The burgeoning need has renewed interest among state and federal regulators in power solutions, including new nuclear and gas-fired power plants. It also resulted in reconsidering plans to retire aging power infrastructures and reviving inactive facilities, such as the recent revival of the Three Mile Island nuclear plant to power Microsoft’s data centers.