Amazon Announces $20 Billion Investment in Pennsylvania Data Centers
HARRISBURG, Pa. (AP) — Amazon has announced a $20 billion investment 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 built alongside the Susquehanna nuclear power plant in northeastern Pennsylvania, and the other 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 its power directly from the plant, while the Fairless Hills facility will connect to the electricity grid. Kevin Miller, vice president of global data centers at Amazon Web Services, confirmed that the company is moving forward with both projects. The investment is expected to create a significant number of construction jobs and generate substantial tax revenue for local governments.
At a news conference held in Berwick, near the nuclear power plant, Governor Shapiro emphasized the significance of this investment, stating, “For too long, we’ve watched as talents across Pennsylvania got hollowed out and left behind. No more. Now is our time to rebuild those communities and invest in them.” Shapiro also highlighted the benefits of the project, including the construction work for trades members, tech jobs for local college graduates, and millions of dollars in property taxes for schools and local governments.
The deal includes various incentives from the state. Pennsylvania will provide possibly tens of millions of dollars in incentives, including $10 million for training classes and facilities to meet the skills demand for the data centers. Amazon will also qualify for the state’s sales tax exemption on data center equipment purchases, a common incentive offered by most states to attract such investments.
This announcement is part of Amazon’s broader infrastructure expansion to meet the growing demand for artificial intelligence products and cloud computing services. Since the start of 2024, Amazon has committed approximately $10 billion each to data center projects in Mississippi, Indiana, Ohio, and North Carolina. The rapid growth in cloud computing and AI has fueled the demand for energy-intensive data centers, which require significant power to operate servers, storage, and cooling systems.
The arrangement between Amazon and Talen Energy, the majority owner of the Susquehanna nuclear power plant, has drawn scrutiny. Talen Energy sold its data center and adjacent land to Amazon for $650 million last year, with plans to provide 960 megawatts of electricity to Amazon. However, the “behind the meter” power supply arrangement has been held up by the Federal Energy Regulatory Commission (FERC) due to concerns over diverting power to higher-paying customers and the impact on grid fees.
This development is part of a larger trend in Pennsylvania, where Microsoft has agreed to restart a reactor at the shuttered Three Mile Island nuclear power plant to supply energy to its data centers across four states. Additionally, the owners of the state’s former largest coal-fired power plant plan to convert it into a $10 billion natural gas-powered data center campus.
The investment in Pennsylvania highlights the growing intersection between Big Tech’s data center needs and the energy sector, with significant implications for local economies and energy infrastructure.
