Amazon Announces $20B Data Center Expansion in Pennsylvania

Amazon will invest $20 billion in two data center complexes in Pennsylvania, marking the state's largest-ever private sector investment, according to Governor Josh Shapiro.

One facility will be built next to the Susquehanna nuclear power plant in northeastern Pennsylvania, with plans to source electricity directly from the plant. This "behind-the-meter" arrangement has drawn federal scrutiny and is currently under review by the Federal Energy Regulatory Commission (FERC).

The second complex will be located at the Keystone Trade Center in Fairless Hills, near Philadelphia, and will be powered via the conventional grid.

Kevin Miller, vice president of global data centers at Amazon Web Services, confirmed that the projects are part of Amazon's broader infrastructure expansion to meet rising demand for AI and cloud computing services.

The Susquehanna plant's owner, Talen Energy, sold the adjacent land and its existing data center to Amazon for $650 million. Amazon plans to replace the facility with a larger one, capable of eventually drawing 960 megawatts--around 40% of the plant's output.

While critics question the limited long-term job creation of data centers, officials point to the thousands of construction jobs, substantial tax revenue, and local economic stimulus. Pennsylvania will provide incentives, including $10 million in workforce training and a sales tax exemption on equipment.

The move comes as tech giants increasingly pair data centers with nuclear and clean energy sources to meet soaring power demands from AI applications.

Source: apnews.com