Pa. data center development powering through rising concerns
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Illustration: Allie Carl/Axios
A tide is forming against data centers, but Pennsylvania is holding it back — for now.
Why it matters: Data centers are attracting more pushback from locals, electric grid monitors and politicians, but it doesn't appear to be slowing them down much in the Keystone State.
The big picture: Fueled by incentives, investment and abundant natural gas, Pennsylvania is accelerating its data center buildout as developers rush to meet rising AI energy demand. State leaders like Gov. Josh Shapiro and U.S. Sen. Dave McCormick expect AI to propel growth, jobs and the state's tech ambitions.
Driving the news: Springdale Council on Tuesday reluctantly approved Allegheny DC Property Co.'s application to convert the former coal-fired Cheswick power plant into a 565,000-square-foot data center complex, noting a denial could invite legal action since the plan met zoning regulations.
- Residents pushed back, concerned the project could drive noise and pollution.
- "Some of my neighbors argue the coal plant was worse, but I don't think we know enough about the combined impacts of these big data centers," Springdale resident Todd Baker told Axios. "People also deserve better than 'it could be worse.'"
- The property's owners said the project would bring more than $2 million a year in new tax revenue and pledged to beat industrial noise-control standards.
Zoom in: There are over two dozen data centers proposed in the state, according to the Pennsylvania Data Center Proposal Tracker.
- One proposed in Homer City, just an hour from Pittsburgh, is the third-largest proposal in the nation, according to the Washington Post.
- It will generate enough energy to power 5.7 million homes, will be powered by an onsite natural gas power plant and is expected to open in 2027.
Friction point: An independent monitor of the PJM power grid — which serves 65 million customers across Pennsylvania and the Mid-Atlantic — said last month the grid can't handle more large data centers and urged federal regulators to block them.
- U.S. Sen. Bernie Sanders (I-Vermont) has proposed a national moratorium on new data centers, citing their impact on rising electricity rates and increasing greenhouse gas emissions.
By the numbers: There are over 100 data centers in Pennsylvania, according to Data Center Map, up from 79 in April.
- The Pittsburgh region has the most (36) of any in the state, followed by Philadelphia (34) and Scranton (9).
Yes, but: Several communities across the state have blocked or preempted data center proposals, like in Cumberland and Luzerne counties.
The bottom line: Growing resistance to data centers — and a possible fracking rebirth — could mirror the tensions that defined Pennsylvania's last natural-gas drilling boom.