PPL Corp. said Nov. 6 that Invitium Energy, its generation joint venture with Blackstone Infrastructure, has agreed all key commercial terms with data center developer QTS to supply about 2 gigawatts of generating capacity for QTS's data center project in Salem Township, Pennsylvania. The announcement came in PPL's third-quarter 2026 earnings release. In the same release, the Allentown-based utility holding company raised its 2027-2030 base capital plan to $25 billion.

The QTS arrangement is not yet a contract. PPL's release describes the term sheet as nonbinding and subject to customary conditions precedent. The release presents it as a commercial milestone for Invitium.

What the Term Sheet Covers

According to PPL's release, filed with the Securities and Exchange Commission as Exhibit 99.1 to a Form 8-K, Invitium "has agreed to terms for approximately 2 gigawatts (GW) of generation capacity to supply power to QTS's Salem Township data center project in Pennsylvania." The release gives the agreement a 20-year initial term with provisions for multiple five-year renewals. PPL also said Invitium has signed a cost reimbursement agreement with QTS.

Utility Dive reported, citing PPL's earnings presentation, that the proposed generation portfolio consists of two combined-cycle natural gas plants complemented with fuel cells and battery storage, and that the structure provides fixed monthly payments with annual escalation. The release says the term sheet advances a letter of intent under which Invitium would be the generation solution provider for QTS data centers in portions of Pennsylvania.

"Invitium Energy has agreed to terms with QTS for approximately 2 GW of generation capacity to serve the QTS data center project in Salem Township, Pennsylvania," PPL President and CEO Vincent Sorgi said in the release, calling it "a significant milestone for Invitium Energy."

Invitium is PPL's joint venture with Blackstone Infrastructure, according to the 8-K exhibit. PPL said the venture supports $6 billion to $9 billion of potential future generation project investment for PPL through 2032, a figure that represents PPL's 51% ownership share and is based on executed reservation agreements for 5 GW of combined-cycle gas turbines. Separately, PPL said economic development activity in Pennsylvania and Kentucky could present $12 billion to $16 billion of potential generation investment opportunity through 2032, a range that includes regulated generation investment as well as Invitium.

None of that is in the new base plan. PPL said the updated capital plan is supported by investments in its regulated utility businesses and does not include potential capital investments or earnings contributions associated with Invitium.

A $25 Billion Base Plan, Driven by Kentucky

The base plan is regulated-utility spending only. PPL said it now expects $25 billion of capital investment from 2027 through 2030, with average annual rate base growth of 10%. The company also raised its long-term earnings-per-share growth target to 7% to 9% through at least 2030.

The release says the plan is $2 billion higher than the prior 2026-2029 plan, primarily because of an additional natural gas combined-cycle unit in Kentucky. Utility Dive reported that the proposed plant would have 645 MW of capacity and be expected to reach commercial operation in the second quarter of 2032 if approved by regulators, citing PPL's earnings presentation. The outlet also reported that PPL's Kentucky spending is set to rise from $2.3 billion in 2026 to $3.6 billion in 2027.

For the quarter, PPL reported GAAP earnings of $0.49 per share ($367 million) and ongoing earnings of $0.54 per share, compared with $0.48 a year earlier, according to the release.

The Load Pipeline in Two States

PPL's numbers show how large the expected data center demand is in both of its service territories.

In Pennsylvania, PPL said PPL Electric Utilities' data center pipeline grew for the 11th consecutive quarter to approximately 35.3 GW in advanced stages of planning. That total includes 11.4 GW under signed electric service agreements and 8.5 GW under construction, according to the 8-K exhibit. Utility Dive reported, quoting Sorgi, that the Pennsylvania figure was up 3.5 GW from the second quarter.

In Kentucky, PPL said the economic development pipeline in the Louisville Gas and Electric and Kentucky Utilities service territories grew to approximately 14.7 GW through 2032, including 12.8 GW associated with data center opportunities.

A pipeline is not the same as load on the grid. PPL's own breakdown separates projects in advanced planning from those with signed service agreements and those under construction. The Salem Township generation would serve one specific QTS project, and the sources reviewed do not tie it to any particular share of the broader pipeline.

Why the Structure Matters to Ratepayers and Officials

For residents and local officials in Salem Township and nearby communities, the release confirms who intends to supply the generation for the QTS project and roughly what kind of plants it would be. The sources reviewed do not give site locations for the plants, a construction schedule, or permitting details. None of the sources reviewed by DataCenterFeed describe a filed air permit, a local land-use application, or an in-service date for the Salem Township generation.

The financial structure also sits apart from PPL's regulated plan. PPL left Invitium out of the $25 billion plan. Per PPL's presentation as reported by Utility Dive, the QTS structure is built on fixed monthly payments. The sources reviewed do not say how, or whether, the arrangement would interact with PJM Interconnection's capacity market or with PPL Electric Utilities' customer rates.

What Happens Next

The QTS term sheet is nonbinding and subject to customary conditions precedent, according to PPL's release. The sources reviewed do not give a date for definitive agreements.

In Kentucky, Utility Dive reported that Sorgi said on PPL's Nov. 6 earnings call that the next certificate of public convenience and necessity (CPCN) filing is anticipated in the first quarter of 2027 and will occur once a data center electric service agreement is signed. The proposed 645-MW combined-cycle plant is expected to begin commercial operation in the second quarter of 2032 if regulators approve it, according to the same report.

Sources