Amazon Announces $20 Billion Investment in Pennsylvania Data Centers, Including Facility at Nuclear Power Plant
Amazon commits $20 billion to build two new data centers in Pennsylvania, including a pioneering direct-power deal with a nuclear plant that's under federal review.
Amazon has announced a sweeping investment plan for Pennsylvania, pledging $20 billion to construct two major data center complexes within the state. This significant expansion marks one of the company’s largest single-state technology infrastructure commitments yet, as Amazon seeks to solidify its cloud computing and artificial intelligence capabilities amid surging industry demands.
One of the highly anticipated facilities will be built in close proximity to the Susquehanna nuclear power plant in Berwick, a partnership that has already generated substantial attention due to its unique energy arrangement. In this deal, Amazon is set to receive direct electricity from the plant through a “behind the meter” connection, effectively bypassing the traditional regional transmission grid. The agreement includes access to up to 960 megawatts—roughly 40% of the power output of one of the nation’s largest nuclear power plants and an amount sufficient to serve over half a million homes.
The second facility will rise just north of Philadelphia, further expanding Amazon's digital footprint across Pennsylvania. Kevin Miller, vice president of global data centers at Amazon Web Services, emphasized the importance of these projects in bolstering infrastructure for cloud-based services and AI innovation. “The scale of these investments reflects our commitment to supporting the next generation of technology solutions,” Miller noted.
This ambitious push adds Pennsylvania to a growing list of states benefiting from Amazon’s multi-billion-dollar data center investments. In just the first half of 2024, the tech giant has also committed approximately $10 billion each to similar initiatives in Mississippi, Indiana, Ohio, and North Carolina. The motivation behind these investments stems from exponential demand for rapid data processing and storage required by evolving artificial intelligence applications and the backbone of cloud computing services.
However, Amazon’s unconventional arrangement with the Susquehanna nuclear plant is currently under review by the Federal Energy Regulatory Commission. Regulators are examining whether direct power deals with high-volume customers—who typically pay premiums for their energy needs—could adversely impact the broader grid or create unfair advantages by exempting them from traditional grid fees. The outcome of this inquiry is poised to set a precedent, as it is the first case of its kind to reach the agency’s desk.
Concerns have been raised about whether such arrangements might reduce available power for other consumers or undermine the financial stability of the regional grid system. As data centers continue to draw increasing amounts of electricity to fuel servers, storage units, and cooling systems around the clock, energy policy experts are watching closely to see how regulators strike a balance between innovation and fairness within critical infrastructure sectors.
Pennsylvania officials have welcomed the impending jobs and economic boost expected from the construction and operation of the new data centers. Yet, the long-term implications for the state’s power grid and ratepayers may hinge on regulatory decisions still to come.
