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CoreWeave Announces $6 Billion Data Center Investment in Lancaster County

CoreWeave's upcoming data center in Lancaster County is set to revolutionize the local economy.

News Summary

CoreWeave, a cloud computing and AI firm, has revealed plans for a $6 billion investment to build a data center in Lancaster County, which would be the largest business investment in the area. The facility is expected to have an initial capacity of 100 megawatts, expandable to 300 megawatts. This project is projected to create 600 construction jobs and 175 long-term positions, but it raises concerns about local resource consumption and the regulatory environment for data centers.

Pennsylvania – CoreWeave, an AI and cloud computing firm, has unveiled ambitious plans for a $6 billion investment to establish a data center in Lancaster County, marking a significant milestone as the largest single business investment in the area’s history. This announcement, made during Senator Dave McCormick’s Pennsylvania Energy and Innovation Summit, has sparked discussions regarding the locality’s approval process for such facilities.

The proposed data center will boast an initial capacity of 100 megawatts (MW), with the potential for expansion up to 300 MW. To put this into perspective, a study indicates that an 18 MW data center has an electricity consumption comparable to a mid-sized automobile assembly plant, or the equivalent energy use of 4,500 homes. With such magnitude, the implications for local resources, including electricity and water, are becoming an area of concern.

Although the exact location of the data center has not been publicly disclosed, planning is underway at two former LSC Communications printing facilities, which are now under the ownership of Machine Investment Group. These sites, located at 216 Greenfield Road and 1375 Harrisburg Pike, collectively encompass over 1.5 million square feet of industrial space across 144 acres.

City leaders in Lancaster are facing limitations regarding their role in the approval process for the data center. Currently, there are no specific ordinances in place that directly regulate such facilities. Since the potential sites are designated in zoning districts that permit data centers, this allows the developers to move forward with their plans as long as they comply with existing regulations. Additionally, while the Lancaster City Council has the authority to craft new rules, these cannot be retroactively enforced on projects where plans have already been filed.

Job Creation and Economic Impact

The CoreWeave data center project is expected to create approximately 600 construction jobs and 175 long-term technical and operational positions. This influx of employment opportunities could provide a substantial economic boost to the region.

Previously, the mayor’s office categorized data centers under “wholesale trade and storage,” which allows for further development under existing suburban manufacturing district classifications. This classification is significant, as it facilitates a smoother operational pathway for projects like the one proposed by CoreWeave.

Regulatory Environment and Community Concerns

Local residents may encounter limitations in their ability to provide feedback during the approval process for the data center. Typically, public input is reserved for land development plans and other state-level permits. Consequently, community members are beginning to express their concerns regarding the extensive consumption of electricity and water associated with data centers, a topic that has raised eyebrows across the country.

CoreWeave plans to work closely with Chirisa Technology Parks and Machine Investment Group to develop the data center effectively. While local government holds some power to enact regulations concerning the size, location, and utility consumption of data centers, previous efforts in neighboring Manor Township have seen moves to limit the size of data centers for regulatory control, indicating that there may be a path to establish parameters that could ease local concerns.

Conclusion

As CoreWeave embarks on this transformative project, the interplay between economic opportunity and local governance is set to shape the conversation in Lancaster County. As the project progresses, the unfolding discussions around energy consumption, local regulations, and community engagement will undoubtedly continue to play a significant role in how the landscape of Lancaster transforms in response to this dramatic investment.