Amazon has announced plans to invest $20 billion in two new data center complexes in Pennsylvania, expanding its cloud computing infrastructure to meet the growing demand for artificial intelligence and cloud services.
The tech giant revealed on Monday that one of the data centers will be built next to the Susquehanna nuclear power plant in northeastern Pennsylvania, tapping directly into its energy supply. The second facility will be located in Fairless Hills, just north of Philadelphia, at the Keystone Trade Center, a site that was once a U.S. Steel mill.
Kevin Miller, vice president of global data centers at Amazon Web Services, stated that the proximity to the nuclear power plant will provide a reliable and clean energy source for the data center. The Fairless Hills site will receive its power through the regular electricity grid.
While some critics argue that data centers bring limited long-term employment opportunities, supporters highlight the substantial construction jobs, significant spending at local businesses, and increased tax revenues for local communities that come with such massive projects.
Pennsylvania is set to offer incentives worth potentially tens of millions of dollars to secure the investment, a common practice as states compete for large-scale tech installations. Amazon will also benefit from the state’s sales tax exemption on data center equipment purchases, aligning with incentives offered by many other states.
This investment adds to a surge of data center developments by tech giants in Pennsylvania. Since the beginning of 2023, Amazon has committed around $10 billion each to data center projects in Mississippi, Indiana, Ohio, and North Carolina. These expansions are part of Amazon’s efforts to bolster its infrastructure and stay competitive in the rapidly evolving tech landscape.
The rise of cloud computing and artificial intelligence has led to increased demand for energy-intensive data centers, which require substantial power to operate servers, storage systems, networking equipment, and cooling systems. Amazon’s strategic investments reflect the company’s commitment to meeting this demand and supporting the growing needs of its global user base.
