The quiet town of Homer City, Pennsylvania, once powered by the state’s largest coal plant, now stands at a crossroads, eyeing a future driven by artificial intelligence. A new gas-fired power station, slated for completion in 2027, is poised to replace the old coal giant, primarily serving vast data centers—a direct link to the burgeoning demands of AI infrastructure.
This transition marks a significant shift for the southwestern Pennsylvania community, where residents like 89-year-old conservationist John Dudash have witnessed decades of industrial change. The former Homer City coal plant, a titan of its era, employed hundreds and generated two gigawatts of power, but also left a legacy of significant air pollution.
The proposed gas plant promises over double the energy output, reaching 4.5 gigawatts. However, its primary role will be to feed the energy-intensive operations of planned data centers on the same site, rather than directly supplying the regional grid. This strategic pivot highlights the evolving energy landscape and AI’s growing demand for power.
From coal’s shadow to AI’s digital frontier
For generations, Homer City was synonymous with coal. The immense Homer City Generating Station, a landmark with some of the country’s tallest smokestacks, was a cornerstone of the local economy. Its closure nearly three years ago, after years of financial struggle, left a void, as reported by Fast Company in January 2026.
The shift from coal to natural gas, and specifically to powering data centers for AI, represents a complex economic and environmental calculus. While the new plant offers a potential economic reboot for this Pennsylvania coal town, it also introduces new challenges related to energy consumption and emissions.
According to the U.S. Energy Information Administration (EIA), natural gas has become a dominant fuel for electricity generation, replacing coal in many regions due to its relative abundance and lower carbon emissions compared to coal, though still a fossil fuel. The scale here, however, is unprecedented for the town.
The new gas plant is projected to emit 17.5 million tons of greenhouse gases annually, equivalent to millions of cars on the road. This raises significant environmental concerns, echoing the historical pollution from the coal plant, which John Dudash suspects may have contributed to his late wife’s lung issues.
AI’s growing energy appetite and local impacts
The burgeoning field of artificial intelligence requires immense computational power, which translates directly into substantial energy consumption. Data centers, the physical infrastructure of AI, are becoming major electricity users globally. This trend is driving demand for new power generation, even in unexpected places like Homer City.
A 2023 study by the International Energy Agency (IEA) highlighted that global data center electricity consumption could double by 2026, reaching unprecedented levels. This surge is largely attributed to the rapid expansion of AI applications, from large language models to complex simulations, necessitating dedicated energy sources.
While the promise of new jobs and economic revitalization is attractive for a community like Homer City, the environmental trade-offs remain a point of contention. Local residents, accustomed to the industrial landscape, now grapple with the implications of a new energy behemoth designed for the digital age.
The development underscores a broader national conversation about balancing economic opportunity with environmental stewardship. As AI continues its rapid ascent, the infrastructure supporting it will increasingly shape local economies and landscapes, demanding careful consideration from policymakers and communities alike.
Homer City’s journey from a coal-dependent past to an AI-powered future encapsulates the complex decisions facing industrial towns worldwide. The reboot, while offering economic revitalization, necessitates a vigilant approach to its environmental footprint. The coming years will reveal if this Pennsylvania coal town can truly thrive in the shadow of its new digital infrastructure, or if the costs outweigh the benefits.
