The data center boom is coming to Pittsburgh — and natural gas is fueling it.

Why it matters: Artificial intelligence is driving an explosion in data center demand nationwide, and Pennsylvania's vast natural gas reserves are attracting developers searching for energy sources powerful enough to run these facilities.

Catch up quick: Since January, Southwestern Pennsylvania has attracted three massive data center proposals — TECfusions in Lower Burrell, Fort Cherry Development District in Washington County, and a facility at the former Homer City Generating Station — and all are planned to be powered by natural gas.

What they're saying: Jim Welty, president of the Robinson-based Marcellus Shale Coalition, expects continued growth in the natural gas industry and sees it as a "major" opportunity to position the region as a global leader in AI.

• "We have one of the largest natural gas deposits in the world, so it just makes sense to build this here," he told Axios.

Context: Pennsylvania produced 7.4 trillion cubic feet of natural gas in 2024, the second-most of any state, trailing only Texas, according to the U.S. Energy Information Administration.

• There are over 220,000 drilled and proposed fracking wells in Pennsylvania as of November 2024, according to FracTracker Alliance.

The other side: Any natural gas expansion will worsen climate change, said David Masur, director of statewide environmentalist group Penn Environment, citing natural gas infrastructure's propensity to leak powerful greenhouse gases like methane.

• "As a society we have to make some big decisions. It is going to be hard because data centers use a lot of energy," he said.

Friction point: Moving natural gas via pipelines or other methods to the new power plants, as well as the potential to frack new wells to produce more gas, could renew some of the same fights Pennsylvania saw a decade ago, said Masur.

• Other Pennsylvania environmental groups and residents have long pushed for expanded fracking setbacks from homes and schools, pointing to studies linking nearby drilling to serious health problems like cancer.

Welty didn't say if he believed new wells would be needed, but urged policymakers to "get out of our own way" to streamline natural gas infrastructure.

The big picture

Pittsburgh is vying to stake its claim in the expanding Midwest tech corridor by ramping up data center growth.

Why it matters: As data centers proliferate to meet growing AI demands, a surge in digital infrastructure raises serious questions about energy, water and long-term economic impact.

Driving the news: A wave of data center power plant projects is hitting southwestern Pennsylvania, led by a $10 billion campus at the former Homer City coal plant.

State of play: Most states, including Pennsylvania, have some tax incentives to lure data centers, and the projects often receive millions in state grants.

• Access to water, available industrial land and abundant natural gas make places like Pittsburgh appealing to companies, says Jon Davis of The Council of State Governments.

What they're saying: "Data centers are creating significant business ecosystems around them," Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios.

Yes, but: Data center expansions often happen behind closed doors, with local governments signing NDAs with tech firms, limiting public knowledge of energy and water use, says Helena Volzer of the nonprofit Alliance for the Great Lakes.

By the numbers: Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the Department of Energy.

Friction point: Data centers require large investments but create relatively few permanent jobs, per a 2023 Virginia report that found most economic benefits happen during construction and decline afterward.

The other side: A recent report touts the economic benefits of data centers beyond the jobs inside them, including boosting local supply chains, employee spending, and tax revenue.

• Data center jobs in Pennsylvania grew over 48% from 2018 to 2024, reaching 13,452 in early 2024, per the U.S. Census Bureau. The report notes the data center industry supported 154,000 direct, indirect and cross-state jobs in Pennsylvania.

Go deeper

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⚾️ The Pirates made baseball history on Monday when two former #1 overall picks comprised a pitcher-catcher battery during a major league game. Pitcher Paul Skenes, (the #1 pick in 2023) threw to catcher Henry Davis (the top pick in 2021) in the Buccos' 10-3 win. (MLB)

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🪧 ACLU of Pennsylvania is suing the University of Pittsburgh, alleging a pro-Palestine student group's free speech rights were violated when Pitt placed the group on interim suspension in March. (TribLive)

Pennsylvania has 79 data centers, about 42% of which are in the Pittsburgh area, including a small cluster at Nova Place on the North Side, per Data Center Map. There are 23 in Allegheny County.

Why it matters: Companies are increasingly looking to cities with cheaper land and more available energy, like Pittsburgh, says Andy Cvengros of real estate firm JLL.

• Pennsylvania ranks 14th in the U.S. for the number of data centers.

Zoom out: Several major data center hubs are near Pennsylvania, including Northern Virginia. Nearby states host hundreds: Virginia leads with 574, Ohio has 179 (with more than 100 clustered near Columbus) and New York has 139.

• New Jersey and Maryland have 75 and 41, respectively.

The big picture: Data center construction is booming across the U.S., jumping 69% from 2023 to 2024, per real estate firm CBRE.