Amazon plans to invest $20 billion to build two data centers in Bucks and Luzerne counties, including one next to a nuclear power plant.
The online retail giant announced Monday the data centers will help expand the company’s artificial intelligence infrastructure. One data center will be next to the Susquehanna nuclear plant, owned by Talen Energy, in Luzerne County. The Bucks County location is at the old US Steel Fairless Works location.
The project represents the largest economic development project in Pennsylvania history.
“We’re creating opportunity for our workers, generating new revenue for our local communities, and ensuring the future of AI runs right through Pennsylvania,” said Gov. Josh Shapiro (D-Pa.).
U.S. Sen. Dave McCormick (R-Pa.), who has championed the development of the state’s energy sector, said the data centers make Pennsylvania “a perfect base to power America’s innovative technological future.” He cited the state’s energy resources, skilled workforce, and elite universities.
Amazon Web Services (AWS), one of the world’s most widely used cloud platforms, will operate both data centers.
AWS announced plans to buy the Luzerne County data center from Talen last year. The deal included a controversial interconnection service agreement (ISA) to expand power sales from 300 MW to 480 MW in a direct connection to the Amazon facilities. Critics say the deal threatens grid reliability
The Federal Energy Regulatory Commission (FERC) rejected the power agreement last December, and an appeal two months ago. Talen said it expected those rulings and is taking its case to the U.S. Fifth Circuit Court of Appeals. It’s not known when that appeal could be taken up.
Despite the regulatory setback, Amazon officials said they’re committed to Pennsylvania.
“By expanding our cloud computing infrastructure, we’re investing in Pennsylvania’s future through new jobs, workforce development programs, and community initiatives,” said David Zapolsky, Amazon’s Chief Global Affairs and Legal Officer.
AWS’s deal with Luzerne and Bucks counties is part of a growing trend: Big Tech companies have increasingly turned to nuclear energy to help power massive data centers. Microsoft agreed to buy power from the Three Mile Island nuclear power plant in Pennsylvania for a data center.
Amazon says it has contributed more than $26 billion to Pennsylvania’s economy since 2010. That includes 23 fulfillment and sorting centers.
“The company’s data center campuses will drive enormous positive tax impacts for our commonwealth, counties, and municipalities,” said state Department of Community and Economic Development Secretary Rick Siger. “Every state wants to win a project like this one.”
More importantly, the projects will create 1,250 high-skilled, high-tech jobs for AWS. That figure does not include the more than 27,000 Amazon jobs already created in Pennsylvania since 2010, along with the 37,100 indirect jobs.
Amazon has promised to partner with Pennsylvania schools and universities to create training programs for those who want to work in data center construction and operations.
That includes a program for cloud computing support careers where people learn how to keep data centers operational. There’s also a certificate program that connects workers with employers after participants learn how to weld fiber optic cables together.
“We look forward to helping drive the next generation of technology innovation, while delivering meaningful benefits for Pennsylvania residents,” noted Zapolsky.
The Pennsylvania Chamber of Business and Industry praised the agreement.
“Amazon’s $20 billion investment proves what’s possible when we focus on making Pennsylvania more competitive by modernizing our permitting and regulatory processes and creating a tax environment where businesses want to invest, grow, and hire talented people,” said president and CEO Luke Bernstein.
There’s no word when the facilities will open.
