Keystone State's investment summit sees big plans for digital infrastructure revealed.
Data center and energy firms have pledged to invest $90 billion in the US state of Pennsylvania to help build out its digital infrastructure following a summit attended by President Donald Trump.
The first Pennsylvania Energy and Innovation Summit was held in Pittsburgh on Tuesday, with Trump and state senator Dave McCormick hosting executives and investors from the US and beyond.
Senator McCormick said: “As the nation’s second-largest energy producer and a global nuclear power leader, Pennsylvania is uniquely positioned to deliver the abundant, affordable energy that growing AI and advanced manufacturing sectors demand.
“We have the skilled workforce to build and operate this critical infrastructure, world-class universities driving innovation, and strategic proximity to over half the country’s population. I am proud to partner with President Trump and the business leaders here today to drive a new era of industrial growth that helps make America energy dominant while creating jobs and opportunities for working families across Pennsylvania.”
DCD reported yesterday on AI cloud provider CoreWeave’s plan for a $6 billion data center in Lancaster, and a 1.5GW scheme that could be developed in Lackawanna County. Google and Brookfield also announced a deal that will see the former gain access to 3GW of clean hydro power from Pennsylvania. Now, other firms have joined the PA party.
Blackstone makes $25bn Pennsylvania pledge
Investment manager Blackstone said it will make a $25 billion investment in data center and energy infrastructure development in Northeast Pennsylvania along with a new joint venture with PPL Corporation for power generation. This investment is expected to create 6,000 construction jobs along with 3,000 new permanent jobs.
Blackstone said it had secured multiple sites in Northeastern Pennsylvania to develop and operate data centers, which will be run by its QTS subsidiary. The company intends to issue a request for information to invite other communities to bid for developments.
The company hopes to work with local, county, and commonwealth officials to utilize Pennsylvania’s new fast-track project management systems to ensure that “all permitting requirements are accomplished at the speed required to meet national priorities in the development and use of AI.” The legislation, Senate Bill 939, has been put forward to coincide with the summit and will now be considered by state lawmakers.
Meanwhile, its partnership with PPL will look to develop new natural gas power plants to meet demand from data centers. Natural gas, a polluting fossil fuel, albeit one with a smaller carbon footprint than coal or oil, is becoming increasingly popular in the US as data center companies seek new ways to quickly source large amounts of power.
Jon Gray, Blackstone’s president and chief operating officer, said: “We’re thrilled to be investing behind two of our highest conviction themes – digital infrastructure and energy – in a part of the country that is ideally situated to support and expand America’s leading position in the AI revolution. We look forward to working with our partners in government, local communities, and with the people of Pennsylvania to meaningfully invest in the growth of the commonwealth’s digital and energy infrastructure.”
A Pennsylvania PowerHouse
Pennsylvania Data Center Partners and PowerHouse Data Centers used the summit to announce plans for a $15 billion joint venture to build three hyperscale data center campuses in central Pennsylvania. The new AI data hub, Pennsylvania Digital I (PAX) will be built in Carlisle and will eventually deliver 1.35GW of capacity, growing to up to 1.8GW, the companies.
The development will comprise three data center campuses, each featuring six buildings and a dedicated 450MW substation. PAX will have access to 17 metropolitan fiber networks, including direct peering with Ashburn, Virginia.
No timescale has been announced for construction, but given that the project will only receive its first 300MW of power by Q2 2027, reaching 1.35GW may take a while.
Doug Fleit, CEO and co-founder of PowerHouse Data Centers, said: "Pennsylvania is important as a growing AI data center market for the Nation and our Pennsylvania Digital I (PAX) project is in the very heart of the state with its access to not only Ashburn, but all of the most important markets in the Eastern United States.
“This campus is built for speed, engineered for growth, and located where the next wave of infrastructure will take shape for our customers.”
Owned and operated by American Real Estate Partners (AREP), PowerHouse has 86 data centers underway or in planning, representing over 24 million sq ft and 6 GW of capacity.
PA Data Centers is a new venture promoting data center developments in the state. It is headed by experienced real estate executive Igal J. Feibush, and PAX appears to be its first project.
Energizing Pennsylvania
To help meet the needs of these developments, myriad power companies are pledging to upgrade their infrastructure across Pennsylvania.
Frontier Group revealed plans to transform the former Bruce Mansfield coal power plant into a natural gas power station in Shippingport, Pennsylvania, at a cost of $3.4 billion. This project is expected to create 15,000 construction jobs and over 300 permanent jobs.
Capital Power announced $3 billion over 10 years to upgrade and expand a gas facility in Shamokin Dam, PA. More than 30 full-time jobs are expected to be created as a result of this investment.
Enbridge will invest $1 billion to expand its gas pipelines into Pennsylvania with projects to be announced over the next six to 18 months, while Equinor will boost natural gas production at its Pennsylvania facilities and explore opportunities to link gas to flexible power generation for data centers. It said this will cost $1.6 billion.
When it comes to nuclear power, a key pillar of the Pennsylvania energy mix, Constellation Energy is spending $2.4 billion to uprate the Limerick nuclear plant, a move that will see 340MW of additional energy available for Pennsylvania. Westinghouse Electric Company is working to have 10 new, large nuclear power plant reactors under construction by 2030, generating what is currently estimated to be $6 billion in economic impact and 15,000 new jobs in southwest Pennsylvania.
First Energy will invest $15 billion to expand power distribution, strengthen grid infrastructure, and operate the enhanced grid, supporting 56 of the 67 Pennsylvania counties. In addition to its partnership with Blackstone, PPL will invest $6.8 billion through 2028 to expand grid capacity and modernize transmission across multiple Pennsylvania counties to support the growing power demand of data centers.
