Homer City & Kiewit Plan Largest U.S. Gas-Powered AI Data Center
Homer City Redevelopment (HCR) and Kiewit Power Constructors Co. (Kiewit) have unveiled an ambitious plan to transform the former Homer City Generating Station, once Pennsylvania’s largest coal-burning power plant, into a state-of-the-art, natural gas-powered data center campus. This groundbreaking redevelopment initiative, covering more than 3,200 acres, aims to meet the increasing demands of artificial intelligence (AI) and high-performance computing (HPC), positioning the facility as a key driver in America’s evolving digital landscape.
The project represents a significant step toward modernizing Pennsylvania’s energy infrastructure while maintaining the site’s long-standing role as an energy hub. GE Vernova (NYSE: GEV) will supply seven high-efficiency 7HA.02 hydrogen-enabled, gas-fired turbines, ensuring a cleaner and more reliable energy source. The first turbine deliveries are expected to commence in 2026, and power production is scheduled to begin by 2027.
Infrastructure and Construction Plans
Kiewit, one of the country’s leading engineering, procurement, and construction (EPC) firms, has been tasked with developing the new Homer City Energy Campus. A crucial advantage of this site is the existing infrastructure left behind by the former coal plant. Essential components such as transmission lines linked to the PJM and NYISO power grids, substations, and water access will enable an efficient transition to natural gas-powered energy generation.
Construction is set to begin this year, with the project expected to create thousands of jobs and bolster Pennsylvania’s economy. The initiative is part of a broader effort to modernize energy production while supporting the exponential growth of data-driven industries, particularly AI and HPC.
Economic and Environmental Impact
William Wexler, President and CEO of HCR, emphasized the transformative nature of the project: “This redevelopment will honor Homer City’s legacy in Pennsylvania’s energy sector while positioning the state as a leader in next-generation energy solutions. Our commitment is not just to modernize energy production but to create economic opportunities that benefit Indiana County, Pennsylvania, and the entire Mid-Atlantic region.”
Some of the key benefits of the project include:
- Up to 4.5 gigawatts (GW) of power generation to support hyperscale data centers, which are critical for AI and HPC operations.
- A significant reduction in greenhouse gas emissions, cutting emissions by 60–65% per megawatt-hour compared to the previous coal plant.
- The creation of over 10,000 on-site construction jobs and approximately 1,000 permanent high-paying positions in energy, technology, and operations.
- An initial capital investment exceeding $10 billion, with further investments in data center infrastructure projected to make this the largest financial commitment of its kind in Pennsylvania’s history.
This ambitious redevelopment is not just about economic growth—it’s also an essential response to the nation’s growing energy demands. The transition to AI-driven computing is placing immense pressure on power grids, and the Homer City project aims to address this challenge.
Addressing Energy Shortages and AI Power Needs
The United States is facing a growing energy shortage, exacerbated by rising electricity demands from AI applications and HPC systems. PJM Interconnection, L.L.C. (PJM), the country’s largest grid operator, has warned of an impending energy capacity deficiency in the Mid-Atlantic region, where more than 20% of the system’s infrastructure is expected to retire by the decade’s end.
The Homer City Energy Campus will leverage natural gas from the Marcellus Shale Region, ensuring a stable domestic energy supply while contributing to U.S. energy independence. By integrating advanced turbine technology and optimizing power distribution, the project will enhance regional energy security while supporting the nation’s technological advancement.
Financial Backing and Industry Collaboration
The financing for this transformative project is being led by Knighthead Capital Management, LLC. The firm has maintained significant equity positions in Homer City for nearly eight years and will continue to provide financial leadership for the development.
Andrew Shannahan, a Partner at Knighthead, underscored the strategic importance of the project: “Knighthead is thrilled to support the long-term development of the Homer City Energy Campus. This initiative will be instrumental in securing America’s leadership in AI and energy infrastructure. The site’s existing attributes provide an unparalleled opportunity to meet the increasing energy demands of the digital era.”
GE Vernova, a key technology partner in the project, is supplying state-of-the-art, highly efficient HA gas turbines designed to enhance energy reliability and sustainability. Scott Strazik, CEO of GE Vernova, highlighted the broader impact of the initiative: “Our advanced turbine technology will provide a more affordable, stable, and cleaner energy source. This project will not only drive economic revitalization in Pennsylvania but also support the nation’s leadership in AI and high-performance computing.”
