Pennsylvania has secured the largest capital investment in its history, a $20 billion project from Amazon to build data centers and expand technology infrastructure across the state.
Governor Josh Shapiro announced the investment at a June press conference, highlighting the creation of more than 1,200 jobs. However, concerns have surfaced about the long-term employment impact and environmental effects of the centers.
Initial construction will take place in Luzerne and Bucks counties. While hundreds of jobs will be required during the building phase, studies indicate a 250,000-square-foot data center typically supports about 50 full-time employees once operational.
At the press conference, nearby protests highlighted local opposition. When asked about these concerns, Shapiro stated that local governments will handle zoning decisions and efforts will be made to address residents’ concerns.
Nationally, employment in data centers has grown by 60% between 2016 and 2023, according to the U.S. Census Bureau. Shapiro emphasized that students in areas like Berwick stand to benefit from job creation, but critics argue the lasting economic impact may be minimal.
The growing energy demand of data centers has also raised environmental concerns. Virginia, which shares the PJM energy grid with Pennsylvania, is expected to double its energy consumption over the next decade, largely due to data center expansion.
In Pennsylvania, Amazon’s Luzerne County data center will draw power from the Salem Nuclear Power Plant. Similarly, Microsoft has partnered with efforts to restart the Three Mile Island plant for AI-related energy needs.
Quentin Good, a policy analyst with Frontier Group, noted that data center development often leads utilities to reconsider closing fossil fuel plants or even building new ones. He added that infrastructure upgrades needed to connect centers to the grid are costly and likely to be passed on to ratepayers through higher energy bills.
Amazon has committed to reaching net-zero carbon emissions by 2040. However, Good said that clean energy sources are not becoming available quickly enough to meet current demand, and nuclear alternatives like small modular reactors are not yet viable at scale. Additionally, concerns remain over the storage of nuclear waste, which is still held on-site at facilities like Salem.
Good noted that while some protests stem from environmental concerns, most local opposition centers around noise, aesthetics, and quality of life impacts, particularly in residential areas.
