Blackstone Commits $25 Billion to Pennsylvania Data Centers, Gas Plants

Blackstone Group President and Chief Operating Officer Jon Gray said the private-equity firm will invest about $25 billion to build data-center capacity and companion natural-gas generation plants across Pennsylvania. The plan, announced during the Energy and Innovation Summit in Pittsburgh on Tuesday, aims to locate energy-hungry data facilities directly alongside new power stations, reducing grid-connection bottlenecks and accelerating project timelines. Gray told the audience that Blackstone has already identified multiple sites and expects to formalize a partnership with a Pennsylvania utility to deliver several gas-fired plants. The first development phase includes a data-center complex at York II Energy Center, a project that could be online as early as 2027 and create roughly 2,500 construction jobs, according to information released by the White House. Demand for artificial-intelligence computing has driven a resurgence in U.S. electricity consumption, and developers face lengthy waits for transmission hookups. Gray said co-locating data centers with on-site generation is “the special sauce,” allowing Blackstone to bring capacity to market sooner while leveraging the state’s abundant natural-gas resources.