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Pennsylvania’s Power Play: How Pennsylvania is becoming the epicenter of America’s AI infrastructure revolution 

Jul 21, 2025

By: Dr. Nick Stapp   

When industry leaders, government officials, and investors gathered in Pittsburgh on July 15, for the Pennsylvania Energy and Innovation Summit hosted by U.S. Senator Dave McCormick with special guest, President Donald Trump, the announcements came in rapid succession: billions in AI investments, new data center projects unveiled, and ambitious energy partnerships inked. The summit crystallized what industry observers have been watching unfold, Pennsylvania’s emergence as an AI infrastructure leader. 

Pennsylvania’s rise as one of America’s innovation leaders mirrors the state’s transformation during the railroad boom of the 1880s-1920s. Just as railroads connected markets and transformed commerce, today’s digital infrastructure revolution has found its natural home in the Commonwealth. Geography, politics, and industrial legacy converge to create ideal conditions for data center expansion. 

Major players have taken notice. Pennsylvania has captured a disproportionate share of private sector investment through Amazon’s $20 billion commitment announced in June 2025. Google pledged $25 billion in data center and AI infrastructure over the next two years in states across the biggest electric grid in the U.S., including $3 billion to modernize two hydropower plants in Pennsylvania. Two massive projects anchor this transformation for which One+ consulted: Homer City Redevelopment Energy Campus ($10B invested for site preparation and power generation and a $15B partnership with EQT for the purchase of natural gas) and PA Data Center Partners + PowerHouse Data Centers’ $15B data center campus, PA Digital I (PAX) Carlisle Development. Additionally, AI hyperscaler CoreWeave plans to invest up to $6B in developing a data center in Lancaster, Pennsylvania. 

This is no accident. Pennsylvania’s nuclear plants, abundant natural gas plays, water infrastructure, strategic highway positioning, and post-industrial sites create a perfect storm for digital dominance. The Commonwealth’s advantages run deeper than infrastructure. Unlike Virginia’s congested Northern corridor, Pennsylvania offers space to scale while maintaining competitive costs. The state draws on world-class higher education institutions excelling in energy and AI research, a skilled workforce within the building trades, and ability to navigate community concerns more effectively than many competitors.  

The state’s embrace of this transformation reflects hard-won lessons from industrial decline. Pennsylvania is learning to balance growth with community needs. This is evident in projects like the Homer City Redevelopment Energy Campus’s transformation of a former coal plant site into an AI computing powerhouse and pledge to hire local labor, and Amazon’s commitment to be “water positive” in Pennsylvania communities by 2030. The Commonwealth’s energy-intensive AI infrastructure represents not just technological progress but economic renewal on an unprecedented scale. 

Modern AI chips consume significantly more power than traditional processors, creating unprecedented demands on the electrical grid. While electricity rates face pressure, Pennsylvania’s diversified energy mix, from abundant Marcellus Shale natural gas, nuclear power, hydropower, and renewables along with a pragmatic regulatory experience position it to manage the transition more smoothly than states dependent on single power sources. Several other announcements were made last week to support power generation for data centers – two included clients, National Fuel Gas and PPL Corporation. 

The long-term prize is substantial: becoming a major hub of AI infrastructure. Pennsylvania’s digital infrastructure investments may fundamentally reshape the state’s economic geography. The Commonwealth that once powered America’s industrial age is positioning itself to play a vital role in its digital future. 

 

Categories: Perspectives
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