The site of Pennsylvania’s largest coal-fired power plant, demolished last month, is set to be transformed into the largest natural-gas powered data center campus in the country, officials announced on Tuesday.

The $10 billion project by Homer City Redevelopment, HCR, and its partner Kiewit Power Constructors Co. is the largest capital investment in Pennsylvania’s history and is designed to support the surging demands of artificial intelligence and high-performance computing.

Located on 3,200 acres, 50 miles east of Pittsburgh, and within 300 miles of major metropolitan areas in the region, the campus will supply power to thousands of homes on the local grid while also supporting multiple large data center customers.

William Wexler, President and CEO of HCR, stated, “This project will honor Homer City’s place in the proud history of Pennsylvania energy generation, while accelerating the state and local community’s ability to meet the needs of a rapidly shifting energy landscape.”

He added, “Alongside our best-in-class partners, we have been working tirelessly to ensure that Homer City’s transformation can happen as quickly and seamlessly as possible.”

According to the company’s website, barring issues such as regulatory processes, labor availability and weather influences, they expect to begin construction this year and be producing power by 2027.

Energy production at the new Homer City Energy Campus will rely on natural gas produced in the Marcellus Shale region of the U.S.

The project aims to address the nation’s growing energy shortage – a crisis that will only intensify as demand surges in the global race for dominance in AI and high-performance computing, or HPC, technology.

According to PJM, the largest grid operator in the country, the Mid-Atlantic region in particular faces a looming energy capacity deficiency, with more than one fifth of the PJM system in the area expected to retire or reach the end of its useful life by the end of the decade.

Beyond energy needs, the project is expected to drive economic growth.

Wexler said they are fully committed to maximizing the unprecedented level of economic opportunity the project represents – not just for Indiana County, but for all of Pennsylvania and the Mid-Atlantic region of the country.

Dave Flickinger, Kiewit Power Constructors Co. Executive Vice President, stated, “We’ve been pleased by how quickly all parties have worked to make this project shovel-ready, all while holding firm to the highest standards of safety and quality – principles we live by at Kiewit.”

“We look forward to continuing our tradition of collaboration and moving with purpose as we enter the next phase on the ground,” he added.

Senator Joe Pittman, R-Indiana, issued a statement calling the news “historic and exciting.”

“This $10 billion capital investment will bring 10,000 construction jobs and 1,000 permanent jobs that will be housed at the Homer City Generating Station property.”

“Our region has a long and storied history when it comes to the production of electricity that has powered not only this commonwealth, but the entire nation. Over the last several decades we have no doubt seen production of electricity in our region undergo a significant transition, which has had a substantial impact upon our local communities, labor employees and their families.”

“This development is great news not just for Indiana County, but quite frankly for our entire region and our commonwealth. I am very proud to represent the community that is going to host such a tremendous economic engine for generations to come.”