PPL lifts capital plan to $25 billion as data center load requests hit 50 GW

PPL has raised its 2027-2030 capital plan to $25 billion, $2 billion above its prior plan, mainly to fund an additional natural gas combined-cycle unit in Kentucky as data center load requests across its two service territories approach 50 GW. The utility announced the plan with third-quarter results on Nov. 6 and lifted its long-term earnings-per-share growth target to 7%-9% per year through at least 2030, up from 6%-8%.

The proposed Kentucky plant would add 645 MW and enter commercial operation in the second quarter of 2032, if regulators approve it, PPL executives said on the earnings call, according to Utility Dive. Regulatory approval is not a formality: the Kentucky Public Service Commission has previously rejected PPL's requests to build new gas capacity. CEO Vincent Sorgi defended the company's pace. "Conservatism is not cost-free," he said. PPL expects to file its next request for a certificate of public convenience and necessity in the first quarter of 2027, once it signs a data center electric service agreement in Kentucky.

How big is the 50 GW pipeline?

The economic development pipeline at PPL's Kentucky utilities, Louisville Gas and Electric and Kentucky Utilities, grew to roughly 14.7 GW through 2032, with 12.8 GW of that tied to data centers. About 2.3 GW sits under signed reimbursement agreements, up 1 GW from the prior quarter.

PPL applies a probability screen to the number. It counts about 4 GW of the Kentucky pipeline as having a 50% or better chance of materializing. Generation in the new capital plan covers about 2.4 GW of that demand. Serving the remaining 1.6 GW would require $6 billion to $7 billion of additional investment between 2027 and 2032, the company said.

In Pennsylvania, PPL Electric Utilities' data center pipeline grew for the 11th consecutive quarter to about 35.3 GW in advanced planning. Within that figure, 11.4 GW sits under signed electric service agreements and 8.5 GW is under construction. The two states together account for the roughly 50 GW of potential load.

Sorgi noted that governors in both states have signed executive orders to develop data centers, and that restrictions elsewhere could push more projects toward PPL's territories. The demand pressure extends beyond this one utility: data center developers are hunting for used gas turbines as deliveries of new units slip to 2030.

What does the Invitium-QTS deal cover?

Invitium Energy, PPL's 51%-owned joint venture with Blackstone Infrastructure, has agreed key commercial terms with Blackstone-owned QTS to supply about 2 GW of generation to QTS's data center project in Salem Township, Pennsylvania. The initial term runs 20 years, with multiple five-year renewals. The term sheet is nonbinding.

The payment structure is conventional for contracted generation. QTS would pay a fixed monthly charge covering return of and on capital plus fixed operating costs, and variable payments for fuel when the plants run.

The generation portfolio pairs two gas combined-cycle plants, due online in 2032 and 2033, with fuel cells and batteries that could start as early as 2029.

What sits outside the $25 billion plan?

The $25 billion capital plan excludes Invitium entirely. PPL puts its share of potential Invitium generation investment at $6 billion to $9 billion through 2032, based on reservations for 5 GW of combined-cycle turbines. Across both states, the company sees $12 billion to $16 billion of potential additional generation investment beyond the current plan.

The quarterly numbers frame the growth case. PPL reported third-quarter ongoing EPS of $0.54, up from $0.48 a year earlier, and guided 2027 ongoing EPS to $2.06-$2.14.

Whether the full pipeline converts into rate base depends on two gates that PPL does not fully control: a Kentucky regulator that has already refused new gas capacity once, and the signing of binding data center service agreements in both states.