Amazon Announces $20 Billion Investment in Pennsylvania Data Centers
HARRISBURG, Pa. — Amazon has revealed plans to invest $20 billion in two massive data center complexes in Pennsylvania, marking what Governor Josh Shapiro called the largest private sector investment in the state’s history. The announcement was made on Monday, with one data center being constructed adjacent to the Susquehanna nuclear power plant in northeastern Pennsylvania, while the other will be located in Fairless Hills at the Keystone Trade Center, a former U.S. Steel mill site.
The data center near the Susquehanna nuclear power plant will draw power directly from the facility, while the Fairless Hills location will connect to the electricity grid. Kevin Miller, vice president of global data centers at Amazon Web Services, confirmed the plans to The Associated Press. Governor Shapiro, speaking at a news conference in Berwick near the nuclear power plant, emphasized that this investment signals a new era for Pennsylvania, helping to rebuild communities and create opportunities.
“For too long, we’ve watched as talents across Pennsylvania got hollowed out and left behind,” Shapiro stated. “No more. Now is our time to rebuild those communities and invest in them. This investment in Pennsylvania starts reversing that trend.”
While critics argue that data centers create relatively few permanent jobs, advocates highlight the significant number of construction jobs required for their development, as well as the substantial spending on local vendors and the generation of tax revenue. Shapiro pointed out that the construction of these data centers will keep tradespeople busy, create tech jobs for local graduates, and result in millions of dollars in property taxes for schools and local governments.
Pennsylvania is offering potentially tens of millions of dollars in incentives to secure the investment. The state will allocate $10 million for training programs at educational institutions to meet the data centers’ skill demands. Amazon will also benefit from Pennsylvania’s sales tax exemption on data center equipment purchases, a common incentive offered by most states.
This announcement is part of Amazon’s broader infrastructure expansion to meet the growing demand for artificial intelligence products, having committed similar investments in Mississippi, Indiana, Ohio, and North Carolina since the start of 2024. The development of data centers, driven by the growth of cloud computing and AI, has increased the demand for energy-intensive facilities.
The arrangement between Amazon and Talen Energy, the majority owner of the Susquehanna nuclear power plant, to supply 960 megawatts of electricity directly to the data center has faced scrutiny from the Federal Energy Regulatory Commission (FERC). This “behind the meter” connection could potentially divert power from other users and raise questions about grid fees.
This investment follows other significant deals in Pennsylvania’s energy sector, including Microsoft’s agreement to restart a reactor at the shuttered Three Mile Island nuclear power plant to supply its data centers, and plans to convert a former coal-fired power plant into a $10 billion natural gas-powered data center campus.
