Homer City plant will boost local power supply
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Vertical steel beams are set to go up this week at the Homer City power plant and data center campus site. Photo: Courtesy of Homer City Redevelopment
A new Western Pennsylvania power plant will not only power a gargantuan data center campus, it will actually add electricity generation to the region's much strained grid.
Why it matters: Data centers are putting pressure on the electrical grid, contributing to surging demand and rising prices for electricity.
Context: Developers are constructing a 4.5-gigawatt natural-gas power plant and data center campus on the 3,200-acre site of a former coal power plant in Homer City, Indiana County, about an hour east of Pittsburgh.
Driving the news: Homer City Redevelopment CEO Corey Hessen provided an update last week at a Pittsburgh Technology Council event, telling the crowd at Rivers Casino that the first vertical steel beams for the project will be raised this week after extensive foundation work has been completed.
By the numbers: The power plant will initially provide 4,500 megawatts of power, including about 3,700 megawatts for data centers, Hessen said.
- That leaves about 700 to 800 megawatts for the electrical grid.
- That's a fraction of the electricity generated in Pennsylvania, but it could supply power to thousands of homes, according to Homer City Redevelopment.
What they're saying: Hessen is proud the project is able to follow state and federal guidance in providing all the data center power on-site without sucking from ratepayers, and then some, he told Axios.
- "We have been thoughtful all along about building a facility that is bigger than the computing need that is gonna be for our customers. So we feel really, really happy about that," he said.
Between the lines: The Homer City project is moving forward on schedule. Hessen said it received its air quality permit in six months, faster than expected.
- "Don't let anyone tell you that you can't build in Pennsylvania," he said.
Friction point: Skepticism about AI and data centers is growing nationally and among Pennsylvanians, and some residents are pushing back, citing rising electricity rates and environmental concerns.
Yes, but: Hessen is optimistic the Homer City project will thread the needle between providing power that data centers need and providing tangible benefits for local communities.
State of play: There are about 1,200 construction workers on-site currently, and that will grow to about 3,500 by this time next year, Hessen said.
- "These are great-paying jobs that didn't exist in Western Pennsylvania a year ago," U.S. Sen. Dave McCormick tells Axios. "With strong local partnerships in Indiana County, Homer City's transformative investment is reimagining Pennsylvania's energy future while delivering major economic benefits that will ripple across the region for decades."
What's next: First power generation is expected in early 2028, Hessen said.
- Construction should be wrapped by 2029, he said.
Editor's note: This story has been corrected to note that it is a 4.5-gigawatt (not 4.4-gigawatt) plant, and that 4,500 (not 45) megawatts of power will be provided, including 3,700 (not 37) megawatts for data centers, leaving between 700 to 800 (not 7 to 8) megawatts for the electric grid.