Pennsylvania is set to witness a monumental shift in its energy landscape with the redevelopment of the former Homer City Generating Station into a sprawling data center campus powered by natural gas. This project, dubbed the Homer City Energy Campus, is poised to become the largest capital investment in the state’s history, signaling a bold move towards a more modern and flexible energy infrastructure.
The transformation of the 3,200-acre site, located about 50 miles east of Pittsburgh, will see the installation of seven GE Vernova 7HA.02 hydrogen-enabled, gas-fired turbines. These turbines will power a 4.5 GW natural gas-fired facility, making it the largest of its kind in the United States. This capacity dwarfs the current largest, the 3,777-MW West County Energy Center in Florida, and underscores Pennsylvania’s ambition to lead in energy innovation.
The project is a collaborative effort between Homer City Redevelopment (HCR) and Kiewit Power Constructors. William Wexler, president and CEO of HCR, emphasized the project’s significance in accelerating Pennsylvania’s ability to meet the demands of a rapidly evolving energy landscape. “This project will honor Homer City’s place in the proud history of Pennsylvania energy generation,” Wexler stated, highlighting the site’s legacy as the largest coal-fired power plant in the state.
The redevelopment is not just about energy; it’s about economic revitalization. The project is expected to create over 10,000 direct construction jobs and approximately 1,000 permanent positions in technology, operations, and energy infrastructure. This influx of jobs and investment is a boon for Indiana County and the broader Mid-Atlantic region.
Kiewit, serving as the engineering, procurement, and construction (EPC) lead, is leveraging existing infrastructure from the legacy Homer City plant. This includes transmission lines serving both the PJM and NYISO territories, substations, and water access. Dave Flickinger, executive vice president of Kiewit Power Constructors, expressed enthusiasm about the project’s potential, stating, “Kiewit is excited to help advance what is poised to become the nation’s largest natural gas-powered plant.”
The shift from coal to natural gas is a strategic move for Pennsylvania, which is the second-largest producer of natural gas in the U.S., behind Texas. The state is phasing out coal-fired units, with all remaining units scheduled to be shut down or converted to natural gas by 2028. The Homer City Energy Campus will utilize natural gas from the Marcellus Shale, the largest natural gas field in the U.S., further integrating the state’s energy resources.
Environmentally, the project aims to reduce greenhouse gas emissions by 60% to 65% per megawatt hour compared to the former coal plant. This significant reduction aligns with broader efforts to mitigate climate change while ensuring a reliable energy supply.
The data center campus will have enough power generation capacity to serve multiple large data center customers and supply power to the local grid. This is particularly relevant as data centers become increasingly critical for supporting the growth of artificial intelligence and other technology-driven industries.
Scott Strazik, CEO of GE Vernova, highlighted the project’s potential to revitalize local economic development and create thousands of skilled jobs. “This project demonstrates the best in what investing in power can do; more affordable and reliable energy for everyone,” Strazik said, emphasizing the broader benefits of the initiative.
Knighthead Capital Management, which has had significant equity positions in Homer City for nearly eight years, will continue to lead project financing. Andrew Shannahan, a partner at Knighthead, expressed excitement about the project’s 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,” Shannahan noted, underscoring the strategic importance of the site.
The Homer City Energy Campus is more than just a redevelopment project; it’s a testament to Pennsylvania’s commitment to innovation, sustainability, and economic growth. As the state transitions from coal to natural gas, it is positioning itself as a leader in the new energy economy, ready to meet the challenges and opportunities of the 21st century. The project’s scale and ambition are likely to spark debate and inspire similar initiatives across the country, as regions grapple with the need for reliable, sustainable energy solutions. The energy sector is watching closely, and the outcomes in Pennsylvania could set new standards for the future.
