Essential Utilities Invests $26M in Data Center, Water Treatment Complex

Per an agreement with International Electric Power III (IEP), Essential Utilities will invest $26 million in a 1,400-acre data center facility in Greene County, PA. The company’s subsidiary, Aqua, will also design, build, and operate an 18 million gallon-per-day water treatment plant connected to the power plant and data center. The Greene County project may come online in Q1 2029, with Essential Utilities and IEP already securing manufacturing slots for gas turbines. The turbines will be delivered in 2028, and IEP is now seeking investors for the project’s next stage.

Essential Utilities’ treatment plant uses raw water from the nearby Monongahela River, supporting both power plant and data center cooling requirements. In addition to leveraging its expertise in water infrastructure, the company’s subsidiary, Peoples, will execute gas consulting and energy management services for the project.

“This is an exciting partnership that provides us the opportunity to leverage our expertise both in water and natural gas and highlights our capabilities as we work with hyperscalers to facilitate the growth of data centers to power the new age of AI in Pennsylvania,” said Chris Franklin, Essential Utilities Chairman and CEO. “This project aligns with the Energy and Innovation Summit recently hosted, in Pittsburgh, by U.S. Senator Dave McCormick to encourage investment in energy and AI. Pennsylvania has the right business climate for projects like this, which is why we are confident in its success.”

The data center project will be powered by 944 MW of behind-the-meter, natural gas combined-cycle combustion turbines, supported by battery storage and backup interconnection with the local electric grid. IEP identified the Greene County site as suitable for data center and on-site generation, with sufficient access to water and dark fiber.

“Pennsylvania’s abundant natural resources, workforce, and strong federal, state, and local official support drew us to Greene County, and Essential’s investment allows us to take the next step toward making this project a reality for Pennsylvania,” said IEP CEO Peter Dailey. “Essential’s expertise in water, wastewater, and natural gas makes them an ideal partner to ensure we have the power and water needed to bring this data center to life.”

Data Centers in Pennsylvania

In early April 2025, Homer City Redevelopment and Kiewit Power Constructors agreed to transform the previously coal-based Homer City Generating Station into a large-scale, natural gas-powered data center complex, leveraging seven GE Vernova 7HA.02 gas turbines to be delivered in 2026. The 3,200-acre Homer City Energy Campus will support increasing AI and high-performance computing demand in the PJM and NYISO power grids.

Once completed, the Homer City Energy Campus will generate up to 4.5 GW of low-carbon power to supply AI-based hyperscale data centers. GE Vernova’s hydrogen-capable turbines will reduce greenhouse gas emissions by 60-65% per MW/hour compared to the Homer City coal plant. The campus will also transmit power to thousands of homes on the local grid.

Most of the critical infrastructure is currently established, such as transmission lines to PJM and NYISO, substations, and access to water. The new campus will also use natural gas extracted from Pennsylvania’s Marcellus Shale. Site construction will begin in 2025, with power generation slated for 2027.