News Summary

Pennsylvania is emerging as a top region for data centers, thanks to its strong energy resources and significant development initiatives. The state is set to host North America’s largest natural gas-powered data center, driving job creation and enhancing energy infrastructure. With growing energy demands from digital technologies like AI, regulatory efforts are being made to ensure efficient energy consumption by data centers. The state’s commitment to infrastructure enhancements demonstrates its ambition to lead in the evolving data center market.

Pennsylvania Emerges as a Leading Hub for Data Centers Amidst Growing Energy Demands

Pennsylvania is rapidly establishing itself as a key player in the data center market, ranking among the top three emerging regions in Cushman & Wakefield’s 2025 Global Data Center Market Comparison report. This development is largely due to the state’s robust energy availability, which is critical for the increasing energy demands driven by advanced technologies such as artificial intelligence and machine learning.

Power Infrastructure and Development Initiatives

The state’s energy infrastructure, along with proactive utility providers, enhances its appeal to data center developers. One of the most significant projects slated for development is North America’s largest natural gas-powered data center. This $10 billion redevelopment project is transforming a demolished generating station in the Pittsburgh region into a modern data center site that will span over 3,200 acres and be powered primarily by natural gas.

In 2022, the global data center market saw a remarkable expansion, surpassing an operational capacity of 40GW across 97 markets worldwide. This growth reflects the heightened demand for data processing and storage capabilities as businesses become increasingly digital.

Regulatory Considerations and Hearings

The Pennsylvania Public Utility Commission (PUC) is actively assessing the impact of data centers on the state’s energy systems and requiring increased regulatory oversight. A recent hearing, held on April 24, 2025, addressed the growing influence of data centers and other large electricity consumers on the power grid. Key concerns discussed included generation reliability, costs related to infrastructure investments, and establishing fair tariff structures for these facilities.

Stakeholders, including representatives from technology sectors, public utilities, and consumer advocacy organizations, collaborated to examine the opportunities and challenges that arise from accommodating energy-intensive facilities. One proposed model discussed was the “bring your own generation” (BYOG) approach, where data centers would be responsible for providing their own power, potentially subjecting them to utility regulations.

Legislative Efforts Underway

Governor Shapiro’s Lightning Plan, which includes proposed legislation, aims to modernize compliance requirements within Pennsylvania’s energy sector. This plan is designed to facilitate adjustments necessary to accommodate the evolving landscape of energy consumption driven by data centers.

Regional Developments and Job Creation

Northeast Pennsylvania is experiencing significant interest from developers eager to establish data centers, owing to favorable land availability, water resources, and power supply. Notably, NorthPoint Development is preparing to construct a 15-building data center campus in Hazleton, PA. This initiative is expected to create around 900 permanent jobs across various fields, including electrical engineering and information technology.

Energy Demands from Data Centers

Data centers typically require substantial power, ranging from 50MW to 500MW. Consequently, their closeness to energy sources, such as power plants, is essential for operational efficiency. Aligned with this trend, the construction of the Homer City Energy Campus aims to produce 4.5 GW of power by 2027 while utilizing innovative technologies to reduce greenhouse gas emissions by 60%.

Future Projections and Investments

The Federal Energy Regulatory Commission (FERC) is also considering new policies that would support the co-location of data centers at power plants. These policies are anticipated to accommodate the rapid growth in power demands resulting from AI computing. Projections indicate that by 2028, data centers could account for between 6.7% to 12% of the total U.S. electricity usage, illustrating the need for substantial increases in power demand.

PPL Electric Utilities highlights its ongoing investments in infrastructure enhancements to support the impending data center developments. This emphasis on infrastructure improvements underlines a commitment to long-term growth and potential job creation within the state. As Pennsylvania solidifies its position in the data center market, ongoing advancements in energy policy and infrastructure will play a pivotal role in shaping the future landscape of technology-driven energy consumption.

Deeper Dive: News & Info About This Topic

• JD Supra: Pennsylvania PUC Reviews Data Center
• Times Leader: Northeast Pennsylvania is a Hot Spot for Potential Data Centers
• Utility Dive: Homer City Gas-Fired Power Station & Data Center
• Connect CRE: Pennsylvania Among Top Three Emerging Data Center Markets
• PR Newswire: TecFusion’s 1400-Acre Data Center Project in Pennsylvania
• Wikipedia: Data Center
• Google Search: Pennsylvania Data Centers
• Google Scholar: Pennsylvania Data Center
• Encyclopedia Britannica: Data Center
• Google News: Pennsylvania Data Centers