Gov. Shapiro announces $20B Amazon AI investment, including development of data center in Bucks County

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Amazon will invest “at least” $20 billion to develop a network of cloud computing and artificial intelligence campuses across Pennsylvania, marking the single largest private-sector investment in the state’s history, Gov. Josh Shapiro announced Monday morning.

“It’s a good day,” he told an assembled crowd of elected officials, business leaders and trades workers in Berwick. “We are moving at the speed of business. Pennsylvania is back on the field, and Pennsylvania is winning again.”

The tech giant’s plan begins with facilities in Falls Township in Bucks County and Salem Township in Luzerne County, with other locations across the commonwealth still under consideration. The Falls Township location will be built at the Keystone Trade Center, previously the site of one of the world’s largest steel mills. The Salem Township location will be situated by the Susquehanna Steam Electric Station nuclear power plant.

According to the governor’s office, the project will create at least 1,250 permanent, high-paying jobs in addition to thousands of construction roles.

“These trades members are going to be working for years and years and years to build out these data centers,” he said, addressing those in the audience. “Our schools and our police departments, our local communities, will benefit from the millions of dollars in new tax revenue that will be brought in from this investment.”

The data campuses, spearheaded by Amazon Web Services, will provide infrastructure for generative AI and cloud technologies, services the company provides to both private enterprise and government sectors worldwide. Amazon officials say the expansion in Pennsylvania is intended to keep the U.S. at the cutting edge of global AI innovation.

“These facilities are really going to serve as the backbone for America’s AI infrastructure, helping make sure that the United States continues to remain at the forefront of global technology innovation,” said Kevin MIller, AWS’s vice president for global data centers.

As part of the investment, Amazon will also partner with state and local institutions to expand AI education, workforce training and career pipeline programs, although details of those initiatives have not yet been released.

Shapiro was joined by Lieutenant Gov. Austin Davis, Community and Economic Development Secretary Rick Siger and U.S. Sen. Dave McCormick.

McCormick congratulated Shapiro for the “huge victory for Pennsylvania.”

“It didn’t happen accidentally,” McCormick said. “Pennsylvania’s blessed. We have amazing assets. We have the second-largest energy capability in the country, the fourth-largest natural gas reserves in the world. We have the absolute best skilled workforce, hardest-working workforce … in the country. We have it right here. A huge asset, these incredible universities. We have all the ingredients for Pennsylvania’s rebirth, all the ingredients to put Pennsylvania at the very top.”

Environmentalists and energy experts have warned that the expansion of AI and the data processing it requires has dramatically increased demands on energy producers. According to the Electric Power Research Institute, domestic data centers consumed more than 4% of the country’s total electricity in 2023, and that could rise to 9% by 2030.

That strain has been felt in the Delaware Valley. In an interview with WHYY News last month, Dave Souder, PJM Interconnection’s executive director of systems operations, blamed such centers for the demand on electricity needs that is outpacing supply, threatening to drive up consumer prices.

“We’re seeing a lot of electrification and or data center loads, with all the AI and computer requirements,” Souder said. “We’re seeing less capacity. We’re seeing generators retire before we have enough replacement generation come online.”

Amazon struck a deal with Talen Energy, Susquehanna’s majority owner, to power the new center — hence the location — but the U.S. Federal Energy Regulatory Commission has put the agreement on hold. If it were to go through, it would mean redirecting power away from the grid, decreasing supply even as other sources decrease.

However, Shapiro framed the deal as a win for the commonwealth and the result of his administration’s efforts to expand economic development by making it easier for companies to set up shop in the state.

“A big reason we were able to get this done is because of Pennsylvania’s new fast-track permitting system, allowing those to understand how quickly they can get a permit, and it’s all done in a transparent and open process, giving confidence to companies like Amazon that their project will get built on time,” he said.