Amazon pledges $20B for new data centers in Pennsylvania

(The Center Square) - The week begins with a historic first, the largest capital investment in Pennsylvania history. Amazon’s commitment of $20 billion for data centers promises to change the state’s landscape for years to come.

The first of the two centers will be built in Luzerne County and Bucks County where the projects promised to deliver at least 1,250 jobs.

“Amazon's multi-billion-dollar investment in Pennsylvania reinforces our dedication to advancing AI innovation while creating lasting economic opportunities in the state,” said David Zapolsky, Amazon's chief global affairs and legal officer. “We look forward to helping drive the next generation of technology innovation, while delivering meaningful benefits for Pennsylvania residents.”

Speaking from the Jackson Mansion in Berwick on Monday, Gov. Josh Shapiro said the deal comes after 20 months of negotiations between Amazon, the state, and local leaders.

The governor drew a picture of Pennsylvania as a leader in artificial intelligence, citing work done at Carnegie Mellon, Penn State, the University of Pennsylvania and other schools. He also pointed to the state’s role in national security, providing resources and manufacturing weapons.

“Right now there is a battle for supremacy when it comes to AI, one that will be won by either the United States or China,” said Shapiro. “I’m comforted by the fact that, thanks to Amazon, the future of AI is going to run right here through the commonwealth of Pennsylvania because I sure as hell think those technologies should be developed by the hands of a Pennsylvania worker here in the United States of America, not in communist China.”

The tech giant has committed to partnering with educational institutions to train data center employees at community colleges, as well as promoting STEM within the state for K-12 students. They’ve also initiated a $250,000 community grant fund for STEM, health, and other projects in the state.

The announcement draws attention to concerns that have been raised across the state about energy prices and environmental impact.

The Luzerne County facility will be located in Salem Township alongside the Susquehanna Steam Electric Station, a nuclear power plant. Recently, Microsoft committed its own capital to bring Three Mile Island back online to power its AI operation. Shapiro used the topic to highlight the state’s diverse energy portfolio, referring to his “all of the above” energy policy.

“Pennsylvania is a national energy leader. We are the second largest energy producer in the entire country, and we have the unique distinction of being a net energy exporter,” said Shapiro. “That means we can produce enough power to support the energy intensive super computers and server farms at Amazon’s data centers, affordable energy to this mansion, while still delivering reliable affordable energy to small businesses that line our main streets, to our families and right into their living rooms.”

Yet, the recent discussion amongst the state’s leaders has shown less certainty around the future of energy and its costs in the state.

“Pennsylvania stands at a critical crossroads,” said Sen. Gene Yaw (R-) at a recent joint hearing of the Senate Environmental Resources and Energy Committee and the Consumer Protection and Professional Licensure Committee. “Our electric grid is being tested by the pressures of generation retirements and unprecedented demand growth, particularly from data centers. We must ensure we have the policy tools and infrastructure in place to meet this challenge head-on.”

Data centers’ massive energy consumption strains consumers’ wallets and compounds the environmental burdens of the current energy grid. Despite strong support for green energy sources and Amazon’s long-term goal of becoming a zero-carbon company, new infrastructure hasn’t been built fast enough to keep up with Pennsylvania's increasing demand. As a result, the state remains reliant on natural gas and other fossil fuels.