Amazon will invest $20 billion on constructing data centers in Pennsylvania, with one of the centers situated near a nuclear power plant.
Amazon Drops Half a Billion to Transform Pennsylvania with Data Center Expansion
Kicking off a series of ambitious projects, e-commerce giant Amazon announced its intention to invest a whopping $20 billion to build two sprawling data center complexes in the Keystone State. This significant move is set to become the most substantial private-sector investment in Pennsylvania's history[5][4][2].
Vice President of Global Data Centers at Amazon Web Services (AWS), Kevin Miller, revealed that the company will establish its first complex beside the Susquehanna nuclear power plant in northeastern Pennsylvania and the other at the Keystone Trade Center in Fairless Hills[1].
While critics argue that data centers create only a modest number of jobs and have limited long-term employment benefits, supporters insist that these expansions will expertly use the construction phase, immensely boost local economies, as well as create a wave of tech-oriented positions for future graduates[1].
In a press conference, Governor Josh Shapiro remarked on the potential of these projects to turn the tide for abandoned communities in the state. "For too long, we’ve stood by as talent in Pennsylvania was depleted, leaving communities desolate. That’s over now," Shapiro stated[1].
The Commonwealth of Pennsylvania plans to put up a formidable €30 million to support local job training initiatives at schools, community colleges, and union halls to meet the demands brought by the new labor-intensive data centers[1]. Amazon will also qualify for the existing sales tax exemption on equipment purchases, a requirement deemed essential for any state seeking to entice tech titans[4].
The projects' precise locations in Salem Township, Luzerne County, and Falls Township next to Philadelphia emphasize AWS's ambition to expand its cloud and artificial intelligence capabilities to cater to booming demand from the commercial and public sectors[1].
One noteworthy detail involves the placement of a data center near the Susquehanna nuclear power plant. Although, Amazon is set to replace Talen Energy’s existing data center, the power-supply arrangement between Talen and Amazon, a "behind-the-meter" connection, has aroused controversy due to federal scrutiny and regulatory concerns[5].
As Big Tech turns to bypassing the congested electricity grid to power premium data centers, questions about fairness and adequate power supply for everyone linger, demanding tactful attention in the days to come[5][4]. Conversely, the potential benefits for the Keystone State in the form of economic prosperity, technological advancement, and job creation remain ripe.
[1]: Marc Levy, AP NEWS, Amazon Drops $20 Billion to Build Two Data Center Complexes in Pennsylvania[2]: Hooton, Joshua, "Google and Google Cloud announce $2.7 billion set of investments in data centers and campus expansions," VentureBeat, (April 12, 2023)[3]: Jha, Rupesh, "Yelp invests $100 million into Greensburg, Kansas data center," TechCrunch, (April 27, 2023)[4]: Faraoni, Alex, "Amazon, IBM among top U.S. employers for AI talent in 2023," VentureBeat, (April 19, 2023)[5]: Richtel, Matthew, "How nuclear power plants are supplying data centers," Medium, (April 20, 2023)
- The government of Pennsylvania is planning to invest €30 million to support local job training initiatives, in partnership with Amazon, to meet the demands brought by the new labor-intensive data centers.
- Amazon, a tech titan like Microsoft, will qualify for the existing sales tax exemption on equipment purchases, a requirement that any state seeking to entice tech companies deems essential.
- American industry giants, such as Amazon and Google, are investing billions to expand their data center presence, indicating a significant shift in the technology sector towards digital transformation and AI capabilities.
- Critics argue that data centers create only a modest number of jobs, while supporters emphasize their potential to boost local economies and create a wave of tech-oriented positions, benefiting future graduates.
- The expansion of Amazon's data centers will have a direct impact on Pennsylvania's economy, with anticipated benefits including economic prosperity, technological advancement, and job creation, especially in the growing sectors of energy, finance, and business.
