Last week, the Pennsylvania Senate Majority Policy Committee heard testimony on the economic potential and community concerns tied to data center development, with PA Chamber Director of Government Affairs Neal Lesher calling the growth of artificial intelligence and data infrastructure “a generational change” that the Commonwealth is uniquely positioned to lead.
“Pennsylvania is at a pivotal crossroads,” Lesher testified at the hearing. “With our unmatched energy resources, reliable water supply, industrial and digital infrastructure, workforce potential, and strategic geographic location, we have all the ingredients to become a national, and even global, leader in data center investment and AI-driven innovation.”
The committee, chaired by Sens. Dave Argall (R-Schuylkill) and Rosemary Brown (R-Monroe), brought together state and local officials, utilities, labor leaders, and technology companies for over three hours of testimony. Speakers addressed the economic benefits of attracting large-scale facilities as well as potential challenges in energy demand, water use, and community impacts.
Lesher told lawmakers that data centers require “robust, scalable systems” to meet power, water, land, and workforce needs, and pointed to Pennsylvania’s abundant energy assets and water supply as key advantages. He said ensuring long-term growth will require investing in transmission systems, adding reliable baseload generation, streamlining permitting, and expanding workforce training.
From a fiscal perspective, Lesher said data centers can provide significant, stable tax revenue with relatively low demand on public services, citing an example from Loudoun County, Virginia, where such facilities accounted for 38 percent of the county’s tax revenue last year while only taking up three percent of the land.
Other testifiers included Amazon Web Services Public Policy Senior Manager Merle Madrid, who said AWS plans to invest $20 billion in Pennsylvania data center projects, creating at least 1,250 high-skilled jobs in Bucks and Luzerne counties. PPL Electric Utilities President Christine Martin told the committee that summer peak energy demand in the region is expected to double in the next five to six years, partly due to data center growth, but said PPL is prepared to meet the increased load.
Lesher urged lawmakers to take proactive steps to ensure Pennsylvania is prepared for data center growth. “We will need to make bold policy choices, form collaborative partnerships, and a shared commitment to economic growth that is both sustainable and forward-looking.”
You can read Lesher’s full written testimony here.