Amazon Makes Major Investment in Pennsylvania Data Centers
HARRISBURG, Pa. — Amazon announced on Monday that it will invest a whopping $20 billion in two new data center complexes in Pennsylvania. One of these facilities will be located next to the Susquehanna nuclear power plant, which has recently come under federal scrutiny for its energy supply arrangement with the tech giant.
Kevin Miller, who oversees global data centers for Amazon Web Services, revealed that the other data center will be situated just north of Philadelphia. The Susquehanna facility aims to tap into the significant power generated by the nuclear plant, while the Fairless Hills site will be developed on a logistics campus that used to house a U.S. Steel mill.
Pennsylvania Governor Josh Shapiro hailed this announcement as the largest capital investment in the state’s history, a clear sign of the state’s growing importance in the tech sector. Amazon’s latest commitment adds to the billions already flowing into Pennsylvania from Big Tech companies focused on data infrastructure.
Since the start of 2024, Amazon has pledged around $10 billion each for similar projects in Mississippi, Indiana, Ohio, and North Carolina. This investment spree is part of a strategic effort to bolster infrastructure in response to the rapidly increasing demand for artificial intelligence products.
The surge in cloud computing and AI technologies has made data centers critical for operations that require vast amounts of power for servers and cooling systems. The Susquehanna nuclear power plant’s majority owner, Talen Energy, had previously sold its data center to Amazon for $650 million, enabling the tech company to access a significant portion of the plant’s output—enough to power over half a million homes.
However, the arrangement known as a "behind the meter" connection, which allows Amazon to receive power directly from the plant, has come under examination by the Federal Energy Regulatory Commission (FERC). The regulatory challenges raise important questions about fairness and energy distribution, especially regarding high-volume users like Amazon.
For Big Tech, establishing direct power links with energy sources can significantly accelerate project timelines compared to connecting through the overloaded electricity grid. While FERC has yet to make a decision on this particular case, other companies like Microsoft are also moving forward with similar energy agreements, showcasing the competitive landscape in the tech industry.
In a related development, plans are underway to convert what was once Pennsylvania’s largest coal-fired power plant into a $10 billion natural gas-powered data center campus, signaling a shift toward more tech-friendly energy solutions in the region.
