In a significant move that could reshape the landscape of Lackawanna County, Pennsylvania, PPL Corp. has entered into an agreement to purchase over 11 square miles of land from local businessman Dominick DeNaples. The land, which includes areas bordering a critical public drinking water source, is set to be explored for the construction of at least two massive power plants designed to support data centers.
The joint venture between PPL Corp. and Blackstone Infrastructure has already signed agreements to acquire nearly 7,200 acres across several Lackawanna County towns, including Archbald, Carbondale, and Mayfield. The venture has also filed requests to add 2.25 gigawatts of natural gas power plants to the county's energy infrastructure. While the exact locations of the power plants remain unspecified, the timing of these requests coincides with a memorandum to purchase land for a "west campus" in Carbondale Twp. and an "east campus" spanning from Archbald to the Brownell Reservoir in Carbondale Twp.
The news has sparked immediate opposition from residents and local officials who are concerned about the potential impact on the environment and the community. Lackawanna County Commissioner Bill Gaughan, a vocal opponent of data centers, expressed his frustration, stating, "Our county should not be offered up as the sacrificial lamb of the AI revolution that is occurring in this country, and it's absolutely disgraceful what's happening here."
Despite the backlash, PPL Corp. spokesman Ryan Hill confirmed that the venture has secured the rights to purchase land in Lackawanna County to evaluate its suitability for power generation for data centers. However, he emphasized that acquiring large swaths of land does not guarantee development on all of it. "The benefit of having large sites is that they provide that flexibility for setbacks, buffers, open space, green space, other considerations for a project such as a generation project," Hill said.
Over the past year-and-a-half, Lackawanna County has become a hotbed for speculative data center development, with around 90 proposed data centers, previously peaking at nearly 100. Despite some developers scaling back their plans, the county remains a focal point for data center projects. PPL Corp.'s venture with Blackstone Infrastructure is now poised to contribute to this trend by potentially fueling data centers with power plants in northern Lackawanna County.
The same venture recently purchased over 500 acres in Luzerne County for $40.4 million and filed for two natural gas power plants with outputs similar to those proposed in Lackawanna County. These projects are part of a larger trend of companies rushing to establish data centers and associated power plants, a move that Lackawanna County Commissioner Gaughan describes as "exploitation to a degree that we have never seen before."
Hill, however, maintains that the joint venture will not proceed with a power plant unless they have a signed agreement with a large customer. "Our focus is delivering reliability, affordability, and local benefits," he said. The venture has yet to sign any agreements with data center developers or submit applications to local municipalities.
The proposed power plants, with requested in-service dates of 2033 and 2034, would contract with a large customer rather than sell to the grid to avoid market volatility. Despite this, the power plants would still be connected to the electric grid, rather than operating as behind-the-meter generation. PPL Corp. has clarified that utility ratepayers will not be responsible for the developments.
As the debate over data center development continues to unfold in Lackawanna County, the future of the proposed power plants remains uncertain. With ongoing litigation and strong opposition from local residents, the project's fate could hinge on a "real reckoning," as Sierra Club Pennsylvania has suggested.
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