PPL Projects Up to $12 Billion in Generation Investment From Data-Center Boom
The utility operator reaffirmed 2026 ongoing earnings guidance of $1.90 to $1.98 a share while disclosing a new $10 billion to $12 billion generation investment opportunity tied to surging data-center demand.
PPL Corp. (PPL), the electric and gas utility operator, reported second-quarter 2026 ongoing earnings per share of $0.33, up 3% from a year earlier, as the company unveiled a multibillion-dollar generation investment pipeline driven by accelerating data-center development across its Pennsylvania and Kentucky service territories.
The quarter's defining disclosure was a new estimate of $10 billion to $12 billion in total generation investment upside through 2032, fueled by economic development in both states. In Pennsylvania, the data-center pipeline in advanced stages of planning grew to 31.8 gigawatts, with more than 11 GW under signed electric service agreements and over 6.5 GW under construction. Kentucky's economic development pipeline reached 13.7 GW, of which 11.6 GW is tied to data centers, with 1.3 GW under signed agreements.
Operating revenues for the quarter totaled $2.11 billion, up 4.2% from $2.03 billion a year ago, while year-to-date revenues rose 7.9% to $4.89 billion. Reported GAAP earnings per share climbed 20% to $0.30, reflecting a sharp narrowing of special-item charges to $17 million from $57 million a year earlier, primarily as IT transformation and integration costs declined.
Across PPL's regulated segments, results were mixed. Kentucky Regulated ongoing earnings per share held flat at $0.18, as higher retail rates effective Jan. 1 were offset by increased operating costs, depreciation, and interest expense. Pennsylvania Regulated ongoing EPS slipped $0.01 to $0.18 on higher depreciation and interest expense, partially offset by stronger transmission revenue. Rhode Island Regulated ongoing EPS rose $0.02 to $0.03, benefiting from lower operating costs and higher rider revenue. Total retail electricity deliveries fell 1.6% year over year, with declines in both Pennsylvania and Kentucky.
Beyond the regulated utility, PPL's joint venture with Blackstone, Invitium Energy, secured land sites for 8 GW to 14 GW of new generation capacity, and PJM accepted more than 5 GW of interconnection requests. The 5 GW of turbine capacity represents $12.5 billion to $15.0 billion of potential investment through 2032, and PPL expects Invitium to have one or more commercial agreements by year-end. Battery and shorter-lead-time technologies could begin contributing earnings in 2029 to 2030, potentially lifting EPS growth above the company's 6% to 8% target range.
In Kentucky, additional generation beyond the 2.3 GW already approved represents $3.5 billion to $4.0 billion of incremental investment between 2027 and 2032, and an additional certificate of public convenience and necessity filing by the end of 2026 has become more likely. Regulated utility plant, net, grew to $33.57 billion at June 30 from $32.65 billion at year-end 2025, while construction work in progress rose to $4.15 billion from $3.44 billion, underscoring the pace of capital deployment.
PPL reaffirmed its 2026 ongoing EPS guidance of $1.90 to $1.98 and its long-term annual EPS growth target of 6% to 8% through at least 2029, adding that compound growth is expected near the top end of that range. Long-term debt increased to $19.79 billion at midyear from $17.99 billion at December 2025, reflecting financing of the expanding capital program.