Invitium Energy, a joint venture between U.S. utility PPL and Blackstone Infrastructure, has secured more than 5GW (gigawatts) of combined-cycle gas turbine (CCGT) capacity for power supply to Pennsylvania data centers. The move is reported to represent up to $15 billion in potential investment.
PPL and Blackstone formed the joint venture Invitium Energy last year to build, own and operate power plants for data centers in Pennsylvania under long-term energy supply services agreements, it is reported. PPL President and CEO Vincent Sorgi said during the company’s second-quarter earnings call on August 7 that Invitium had secured sites in Pennsylvania that could support up to 14GW of new generation, and had entered into reservation agreements for more than 5GW of combined-cycle gas turbines. It is reported that PJM Interconnection, the regional grid operator, has accepted approximately 5GW of Invitium’s generating projects into its interconnection queue.
Under-construction data center load in PPL Electric’s service territory reached more than 6.5GW in the second quarter, up from 5GW in the first quarter, it is reported. PPL Electric’s advanced-stage data center pipeline grew 12% quarter-over-quarter to 31.8GW, including 11GW covered by signed electric service agreements, according to reports. CEO Sorgi noted that while Invitium could generate earlier revenue by supplying batteries to data center customers, such opportunities may be limited since hyperscalers often prefer to embed batteries directly into their own data center designs.
Implications for Korea’s Industry
The continued growth in large-scale gas turbine reservations to meet surging U.S. data-center-driven electricity demand is seen as a relevant trend for Korean power equipment manufacturers assessing opportunities in the U.S. market.
With PJM planning to hold a backstop reliability auction in late September, CEO Sorgi said bilateral contracting is expected to remain the main pathway for adding generation in the region. It is reported that Invitium is likely to announce at least one additional data center supply agreement this year, making any such announcement worth watching.