PPL Corp. and its joint venture with Blackstone Infrastructure have recently secured a substantial land deal in Lackawanna County, Pennsylvania, signaling a potential expansion in the region's data center infrastructure. The joint venture, which includes the purchase of over 11 square miles of land, has sparked both optimism and concern among local residents and officials.
The land acquisition encompasses areas in Archbald, Carbondale, Carbondale Twp., Fell Twp., and Mayfield, including properties near a critical source of public drinking water. The joint venture plans to explore the feasibility of constructing at least two massive power plants to support potential data centers in the region.
The timing of the land deal, coupled with the joint venture's filing for 2.25 gigawatts of natural gas power plants, has raised eyebrows among local residents. Lackawanna County Commissioner Bill Gaughan, a vocal opponent of data centers, expressed his frustration, stating that the county should not be "offered up as the sacrificial lamb of the AI revolution."
Despite the backlash, PPL Corp. spokesman Ryan Hill emphasized that the venture's current focus is on evaluating the land for power generation suitability. Hill explained that while the company has secured the rights to purchase land, it does not imply development of all acquired land. "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 seen a surge in speculative data center development, with around 90 proposed projects, previously peaking at nearly 100. The rush for data centers and power plants has sparked debate over the balance between economic development and exploitation, with some officials arguing that the pace of development is moving beyond acceptable limits.
PPL Corp.'s venture with Blackstone Infrastructure has also purchased over 500 acres in Luzerne County for $40.4 million, with plans to file for two natural gas power plants with outputs similar to those in Lackawanna County. According to Hill, the power plants would contract with a large customer, rather than selling to the grid, to avoid market volatility while still being connected to the electric grid.
Despite the preliminary nature of the developments, there are concerns about the potential impact on local communities and the environment. The joint venture has not yet entered into agreements with data center developers or submitted any applications to local municipalities, but the timing of the power plant requests and land deals has raised questions about the company's long-term plans.
Local officials and residents are calling for a "real reckoning" regarding the pace and scale of data center development in the region. Gaughan highlighted the importance of finding a balance between economic opportunities and the well-being of the community, stating, "There's a line between economic development and exploitation. They're not even approaching that line anymore—they're just stampeding right across it."
As the situation unfolds, the future of data center development in Lackawanna County remains uncertain, with potential power plants and data centers at the center of a contentious debate over economic progress and environmental impact.
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