Amazon announced on Monday plans to invest $20 billion in two new data center complexes in Pennsylvania. One of these is being built adjacent to the Susquehanna nuclear power plant in northeastern Pennsylvania, a site that has attracted federal attention due to its unique power arrangement. The second complex will be located just north of Philadelphia, in Fairless Hills, on the former site of a U.S. Steel mill now known as the Keystone Trade Center.
Kevin Miller, vice president of global data centers at Amazon Web Services (AWS), confirmed the plans and noted the significant scale of the projects.
Power Arrangements and Federal Scrutiny
The data center near the Susquehanna nuclear plant intends to source its electricity directly from the facility, while the Fairless Hills data center will draw power from the general electricity grid. The Susquehanna plant, operated by Talen Energy, sold adjacent land and a data center to Amazon for $650 million last year, enabling Amazon to tap into nearly 40% of the plant’s output—enough electricity to power over half a million homes.
This “behind the meter” connection between Amazon and Talen Energy is currently under review by the Federal Energy Regulatory Commission (FERC), marking the first case of its kind. FERC has raised concerns about whether such arrangements might divert power from other customers and whether exempting large users from certain grid fees is fair.
Economic Impact and Local Response
Pennsylvania Governor Josh Shapiro described Amazon’s investment as the largest private sector investment in the state’s history. Shapiro emphasized the project’s potential to create construction jobs, stimulate local vendor spending, and generate substantial tax revenues for schools and municipalities. His administration is also collaborating with Amazon on additional data center projects within Pennsylvania.
While critics often point out that data centers do not create many permanent jobs, supporters highlight the surge in construction employment and economic activity during building phases, as well as the steady tax benefits.
The state plans to offer tens of millions of dollars in incentives and will invest $10 million to support workforce training through schools, community colleges, and unions to meet the centers’ labor demands. Amazon will also benefit from Pennsylvania’s sales tax exemption on data center equipment.
Big Tech’s Growing Footprint in Pennsylvania and Beyond
This announcement adds to billions of dollars already committed by major tech companies expanding their data center footprints. Since the beginning of 2024, Amazon has announced roughly $10 billion investments in data center projects across Mississippi, Indiana, Ohio, and North Carolina.
The surge in cloud computing and AI services has driven demand for large, energy-intensive data centers capable of supporting servers, storage, networking, and cooling infrastructure.
Separately, Microsoft has secured a 20-year agreement to power data centers in four states using energy from a planned restart of a reactor at the shuttered Three Mile Island nuclear plant in Pennsylvania.
In addition, the former site of Pennsylvania’s largest coal-fired power plant is being transformed into a $10 billion natural gas-powered data center campus, reflecting a shift toward modern energy solutions to fuel tech infrastructure.
Author’s Opinion
Amazon’s massive investment in Pennsylvania’s data center landscape reflects the critical role of data infrastructure in today’s digital economy. While direct power sourcing from nuclear plants promises cleaner energy, it raises complex regulatory and fairness questions. The balance between fostering technological growth, ensuring equitable grid access, and delivering local economic benefits will shape how these projects are perceived and succeed. Workforce development and community engagement will be essential to turning this massive capital influx into lasting prosperity.
Featured image credit: Wikimedia Commons
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