FAQ’s

Separating Fact from Fiction

Fiction

Data centers will raise energy costs for residents.

Fact

  • Data centers co-invest in grid modernization, adding transmission capacity and reducing congestion costs that otherwise drive-up rates.
  • Many projects include on-site generation and battery storage, improving reliability for all customers.

Bottom Line

These projects strengthen grid reliability and keep energy affordable for all consumers, without burdening ratepayers.

Fiction

They don’t create enough jobs to justify the investment.

Fact

  • Each direct data center job supports six additional jobs in industries including construction, maintenance, and
    local services. 
  • Examples include: Amazon (1,250+ high-paying technical roles plus thousands of related jobs); Blackstone/QTS (3,000 permanent and 6,000 construction jobs); and CoreWeave: (600 construction
    and 175 operational jobs).

Bottom Line

Data centers deliver high-skill careers and create jobs across the economy in the trades, logistics, and professional services.

Fiction

Data centers strain the grid and cause outages.

Fact

  • Developers work with utilities and PJM to plan capacity upgrades years in advance of development.
  • Many projects include demand-response agreements and energy storage systems to reduce peak demand.

Bottom Line

Data centers are partners in grid reliability, not competitors for power.

Fiction

Data centers waste water and harm the environment.

Fact

  • Closed-loop data center cooling systems use no more ongoing water than common closed-loop systems
    already found in hospitals, office buildings, power plants, and manufacturing facilities — and in many cases, comparable to or less than a golf course or restaurant. Hybrid systems draw water amounts in line with traditional agricultural irrigation.

Bottom Line

Data centers are leaders in energy efficiency and water conservation.

Fiction

Local communities won’t see benefits.

Fact

  • Data centers expand local tax bases, funding schools, fire/EMS, and infrastructure without raising residential taxes.
    • Pennsylvania Data Center Partners’ $15 billion investment into Cumberland County will generate over $65 million in direct tax revenue – doubling Middlesex Township’s operating budget, covering a quarter of the school district’s annual budget, and providing a 12 percent increase to the county’s overall tax base.
    • CoreWeave’s data center project in Lancaster County has already generated approximately $7.8 million in Phase 1 building permit fees for the city. Additionally, the data center owners have agreed to pay a combined $20 million toward local grant programs to support economic development and sustainability.

Bottom Line

Data centers add millions to local community budgets, allowing for increased investments in education and other critical public services.

Join Us

The Pennsylvania Energy & Innovation Institute is the leading platform for ideas, data, and innovation to intersect and generate a vibrant energy future for our Commonwealth.

To learn more and get involved, contact Amy Brinton at abrinton@pachamber.org.