Pennsylvania Prepares for Data Center Explosion Amid Rising A.I. Demand
Harrisburg, PA – As the surge of artificial intelligence technology accelerates, data centers are becoming the hottest topic heading into 2025. With the demand for computing power skyrocketing, experts are questioning whether Pennsylvania can support this energy-intensive industry.
Frank Gamrat, executive director of the Allegheny Institute for Public Policy, emphasizes the urgency of this challenge. A report from the Electric Power Research Institute (EPRI) highlights that new data centers could require between 100 to 1,000 megawatts of electricity—equivalent to the power consumption of 80,000 to 800,000 homes.
Gamrat points out a potential mismatch in supply and demand: data center construction typically takes one to two years, while building new electricity-generating facilities can take even longer. This delay could lead to rising electricity prices as demand for power increases, compounded by shifts toward electric vehicles and renewable energy sources.
Plans are already emerging to repurpose former fossil fuel sites—the Homer City power plant is set to transform into a vast data center campus, incorporating a natural-gas-powered generation plant that will be the largest in the state. Similarly, the Springdale power plant site is under consideration for a data center.
While Pennsylvania offers advantages like low energy costs and skilled labor, it also faces significant challenges, including aging infrastructure and regulatory scrutiny. Gamrat stresses the importance of streamlining the permitting process to facilitate growth and warns against taxpayer subsidies that could burden the state.
As the demand for data centers continues to climb, Pennsylvania must act swiftly to leverage this opportunity for economic growth and job creation while ensuring a stable energy supply.
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