Homer City Redevelopment (HCR) and Kiewit Power Constructors Co. (Kiewit) announced the future of the former Homer City Generating Station. Homer City – previously the largest coal-burning power plant in Pennsylvania – will be transformed into a more than 3,200-acre natural gas-powered data center campus, designed to meet the growing artificial intelligence (AI) and high-performance computing (HPC) needs of the innovative technology companies shaping America’s digital future.

GE Vernova will provide seven high efficiency 7HA.02 hydrogen-enabled, gas-fired turbines, with the first deliveries expected to begin in 2026. The Homer City Energy Campus will be built by Kiewit Power Constructors Co., one of the leading engineering, procurement and construction (EPC) contractors in the country. Much of the critical infrastructure for the project is already in place from the legacy Homer City plant, including transmission lines connected to the PJM and NYISO power grids, substations and water access. Construction of the site is expected to commence this year and is expected to begin producing power by 2027.

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William Wexler, President and CEO of HCR, stated, “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. 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.”

Key attributes and benefits of the project are expected to include:

  • Delivery of up to 4.5 gigawatts (GW) of power to support AI-driven hyperscale data centers, while reducing greenhouse gas emissions by 60–65% per megawatt hour compared to the former coal plant.
  • Deployment of numerous previously secured long-lead power components coupled with 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 this the largest such investment in Pennsylvania’s history.

Importantly, energy production at the new Homer City Energy Campus will rely on natural gas produced in the Marcellus Shale Region of the U.S., and the project will help address the nation’s growing energy shortage – a crisis that will only intensify as demand surges to support the global race for dominance in AI and HPC technology. According to PJM Interconnection, L.L.C. (“PJM”) – the largest grid operator in the country – the Mid-Atlantic region in particular faces a looming energy capacity deficiency, with more than one fifth of the PJM system in the area expected to retire or reach the end of its useful life by the end of the decade.

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Knighthead Capital Management, LLC, on behalf of certain entities it manages and advises, has had significant equity positions in Homer City for nearly eight years and will continue to lead project financing.

Andrew Shannahan, a Partner at Knighthead, stated, “Knighthead is thrilled to be involved in the long-term development of the Homer City Energy Campus, which we believe will play a vital role in securing America’s AI and energy capacity dominance. We have long recognized the unique value inherent in Homer City’s infrastructure and power generation attributes, and we look forward to working closely with all of the local and national stakeholders that will play essential roles in making this vision a reality.”

Scott Strazik, CEO of GE Vernova noted, “We are honored to provide our U.S. manufactured, highly efficient and advanced HA gas turbine technology and combined cycle equipment for the Homer City Energy Campus. This project demonstrates the best in what investing in power can do; more affordable and reliable energy for everyone, revitalizing local economic development benefits with thousands of skilled jobs and enabling Pennsylvania to help lead the future of AI.”

Dave Flickinger, Kiewit Power Constructors Co. Executive Vice President, added, “Kiewit is excited to help advance what is poised to become the nation’s largest natural gas-powered plant. We’ve been pleased by how quickly all parties have worked to make this project shovel-ready, all while holding firm to the highest standards of safety and quality – principles we live by at Kiewit. We look forward to continuing our tradition of collaboration and moving with purpose as we enter the next phase on the ground.”

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Source – businesswire

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