Community News • Community Pages • September 29, 2026

Why Are Data Centers Coming to Pennsylvania?

Introduction

Artificial intelligence is becoming part of everyday life, often without people noticing it.

Facial recognition unlocks phones. Streaming services recommend music and movies. Email systems filter spam. GPS applications predict traffic. Generative AI creates text, images, code, and other content.

All of those services depend on physical infrastructure. AI applications require computer chips, servers, networking equipment, cooling systems, fiber connections, and enormous amounts of electricity.

That helps explain why data-center development is accelerating and why Pennsylvania has become an attractive location.

Pennsylvania offers abundant energy, existing transmission infrastructure, accessible water, former industrial properties, skilled workers, research universities, and proximity to major East Coast markets. At the same time, residents and local governments are asking serious questions about electricity costs, water use, noise, farmland, jobs, and the long-term effect on their communities.

I recently attended the Pennsylvania Association of REALTORS® webinar “Data Centers in Pennsylvania: Why Here? Why Now?”, presented by Tom Beresnyak of Penn State Extension. The presentation was designed to support fact-based community conversations without advocating for or against data-center development. [extension.psu.edu], [parealtors.org], [agsci.psu.edu]

Why Are Data Centers Coming to Pennsylvania?

Pennsylvania is attracting data centers because it has the energy resources, infrastructure, industrial properties, water access, skilled workforce, and geographic location needed to support them.

Data centers operate continuously and require dependable electricity. Pennsylvania is one of the country’s largest electricity-producing states, with natural gas and nuclear power supplying much of its generation. The state also exports large amounts of electricity to surrounding markets. [eia.gov], [ifo.state.pa.us], [ifo.state.pa.us]

Former power plants and industrial sites may already offer:

  • Transmission access
  • Substations
  • Industrial zoning
  • Water infrastructure
  • Large parcels
  • Fiber connectivity
  • Proximity to major population centers

Those advantages can reduce some of the time and cost required to prepare a completely undeveloped location.

Why Does AI Require More Data Centers?

Worldwide data creation has grown rapidly because of smartphones, streaming, cloud computing, connected devices, remote work, online gaming, and artificial intelligence.

AI applications are only the visible top layer. Below them are:

  1. Software and language models
  2. Semiconductors and computer hardware
  3. Servers, networking equipment, and storage
  4. Electricity and cooling infrastructure

The more people and businesses use AI, the more computing capacity is needed to train models, process requests, store information, and deliver results.

This demand is not limited to future versions of artificial intelligence. Today’s “narrow AI” systems already perform specific tasks such as image recognition, recommendations, navigation, language processing, and content generation.

Data centers provide the physical environment where those systems operate.

Not All Data Centers Are the Same

The term data center can describe facilities with dramatically different sizes and power requirements.

Micro data centers

These may use less than 100 kilowatts and support small, localized applications.

Edge data centers

These are often located closer to users and may support wireless networks, streaming, autonomous systems, or services requiring fast response times.

Enterprise data centers

These are dedicated facilities used by individual businesses or organizations. They may require approximately one to ten megawatts.

Colocation data centers

These facilities lease server and networking capacity to multiple customers. They may use approximately 10 to 100 megawatts.

Hyperscale data centers

These are the largest facilities. They may require 100 to 1,000 megawatts and occupy anywhere from 50,000 to more than one million square feet.

Hyperscale facilities can support cloud computing, AI training, social media, and services offered by companies such as Amazon, Microsoft, Google, and other major technology providers.

The proposed TRON USA AI Campus at the former Titus Generating Station in Cumru Township is much closer to the hyperscale category than to a small server facility. Its proposed first phase would require approximately 200 megawatts.

Pennsylvania’s Biggest Advantage Is Energy

Data centers cannot operate without reliable electricity.

In 2024, Pennsylvania ranked third nationally in total electricity generation, with natural gas serving as its primary generation source. Pennsylvania also remained a major exporter of electricity into the regional grid. [eia.gov], [ifo.state.pa.us]

Pennsylvania’s advantages include:

  • Major natural-gas production
  • Considerable underground natural-gas storage
  • Nuclear generation
  • Existing power plants
  • Regional transmission connections
  • Substations and energy infrastructure
  • Access to the Appalachian natural-gas basin

Power reliability also matters.

A power source’s capacity factor measures how much electricity it produces compared with how much it could produce if it ran at full output continuously. Data centers operate around the clock, so developers value power sources that can produce consistently.

Nuclear plants generally have very high capacity factors. Natural-gas plants can also provide controllable generation when electricity is needed. Wind and solar contribute to Pennsylvania’s energy mix, but their output changes with weather and time of day.

This does not mean one energy source is automatically best. It means data centers require a combination of generation, transmission, backup capacity, storage, and grid management sufficient to provide stable service.

Why Are Former Power Plants Being Considered?

Many proposed Pennsylvania data-center projects are connected to former or existing energy sites.

These properties may already have the infrastructure that power-intensive facilities need.

Titus Generating Station

The former Titus Generating Station in Cumru Township is the proposed location for the TRON USA AI Campus. The roughly 196-acre property previously operated as a coal-fired generation facility before being decommissioned in 2014. Developers have cited its transmission access, electrical infrastructure, water access, fiber connectivity, and location near Philadelphia and New York as advantages.

Homer City

The former Homer City coal plant in Indiana County is being redeveloped into a large natural-gas-powered energy and data-center campus. The proposed development could produce up to 4.5 gigawatts of power and uses infrastructure remaining from the former plant, including transmission connections, substations, and water access. [homercityr…opment.com], [pa.gov], [visitindia…untypa.org]

Amazon in Pennsylvania

Amazon announced plans to invest at least $20 billion in Pennsylvania data-center infrastructure. The first identified campuses are in Salem Township near the Susquehanna nuclear plant and at the former U.S. Steel property in Falls Township. Amazon projects at least 1,250 permanent skilled positions, along with construction and supply-chain work. [apnews.com], [aboutamazon.com]

Crane Clean Energy Center

Constellation is pursuing the restart of the former Three Mile Island Unit 1, now known as the Crane Clean Energy Center, under a long-term power agreement with Microsoft. Unit 1 is separate from the reactor involved in the 1979 accident, and regulatory work is still required before a restart. [siliconcanals.com], [sustainabi…itymag.com]

These projects illustrate the same broader pattern: AI infrastructure is following access to large amounts of dependable energy.

How Much Water Do Data Centers Use?

There is no single answer because water use depends heavily on the cooling system and location.

Servers produce considerable heat. That heat must be removed continuously to prevent equipment damage and maintain performance.

Wet or evaporative cooling

Wet cooling uses water evaporation to remove heat. It may use less electricity than dry cooling but can consume substantial water.

Dry cooling

Dry cooling transfers heat into the surrounding air. It can use very little on-site water but typically requires more electricity, particularly during hot weather.

Hybrid or adiabatic cooling

A hybrid system combines parts of wet and dry cooling. Water may be used during certain conditions, while air cooling is used at other times.

The Susquehanna River Basin Commission explains that data-center water demand can range from very low to millions of gallons per day depending on cooling design, climate, company, and site. The commission requires approval when withdrawals or consumptive use exceed its regulatory thresholds. [srbc.gov]

As one Pennsylvania example, Amazon received approval for up to 129,000 gallons per day of consumptive use at its Salem Township campus. That amount represents an approved limit for a specific project, not a standard that applies to every data center. [altoonamirror.com], [srbc.gov]

For Berks County, the important questions are not simply, “Do data centers use water?” The better questions are:

  • What cooling system is proposed?
  • What is the expected average and peak water use?
  • Where will the water come from?
  • Will water be returned after use?
  • Will nearby residents or businesses be affected?
  • What monitoring and conservation requirements will apply?

Why Is Cooling Such a Major Issue?

Cooling may account for roughly 40% of a data center’s electricity consumption. Another large share operates the servers, while the remainder supports power systems, storage, and communications.

That makes cooling efficiency important for both cost and environmental impact.

Modern operators evaluate data centers using measures such as:

  • Power Usage Effectiveness, or PUE
  • Carbon Usage Effectiveness, or CUE
  • Water Usage Effectiveness, or WUE

These measurements help compare how much energy and water support the computing equipment versus how much is consumed by cooling and other building systems.

Penn State researchers are developing AI-powered software that could reduce data-center cooling energy use by approximately 25%. The system evaluates climate, power prices, and operating conditions to make cooling recommendations. A commercial deployment has been planned at a Harrisburg data center. [psu.edu], [news.engr.psu.edu]

Other technologies under consideration across the industry include liquid cooling, immersion cooling, improved air handling, and systems using mine water or other local resources.

What Economic Benefits Could Data Centers Bring?

Data centers can represent substantial private investment.

Potential economic benefits include:

  • Construction employment
  • Demand for electricians, pipefitters, HVAC technicians, engineers, and equipment operators
  • Permanent technical and maintenance jobs
  • Property and commercial tax revenue
  • Demand for industrial land
  • Utility and fiber improvements
  • Contracts for local vendors
  • Related technology and energy investment
  • Workforce training

Construction employment can be significant because a large facility may take years to build and require major electrical, mechanical, utility, and site work.

However, permanent employment is typically much smaller than the construction workforce.

The PAR presentation used an illustrative facility of approximately 250,000 square feet and nearly $1 billion in capital investment. The example could require about 1,500 workers during an 18-month construction period but employ only around 50 people directly after completion.

Actual numbers vary by project. Residents should distinguish among:

  • Temporary construction positions
  • Permanent on-site employment
  • Indirect supply-chain jobs
  • Broader economic activity
  • Developer projections that have not yet been independently confirmed

Amazon’s announced Pennsylvania investment is expected to create at least 1,250 permanent skilled jobs across multiple campuses, along with thousands of construction and supply-chain positions. [aboutamazon.com], [penncapital-star.com]

Why Are Communities Concerned?

Public concern is understandable because data centers can create development at a scale many municipalities have never regulated before.

Common concerns include:

  • Electricity demand
  • Higher utility costs
  • Water consumption
  • Mechanical noise
  • Backup generator testing
  • Air emissions
  • Transmission lines and substations
  • Visual effects
  • Construction traffic
  • Tax incentives
  • Farmland conversion
  • Limited permanent employment
  • Environmental risks
  • Decommissioning if the facility closes

The presentation cited public opinion showing more opposition than support for data-center development. Opposition does not necessarily mean residents reject technology. It may reflect uncertainty, limited information, or concern that costs and benefits will not be distributed fairly.

Penn State’s research and extension network was created partly because municipalities and agencies are confronting proposals without always having access to independent, science-based guidance. [agsci.psu.edu]

Why Are More Projects Moving Into Rural Areas?

Most existing data centers are located in urban or suburban markets. However, a growing share of proposed facilities is moving into rural counties.

Rural areas may offer:

  • Larger parcels
  • Lower land costs
  • Fewer immediate neighbors
  • Former mines or industrial properties
  • Transmission corridors
  • Access to natural gas
  • Water resources
  • Room for substations and additional generation

The tradeoff is that rural development can affect farmland, important soils, open space, views, and community character.

This is especially relevant in Berks County, where agriculture remains an important part of the economy and identity.

A former power plant or industrial site may present different land-use issues than converting productive farmland. That does not make every brownfield or industrial proposal appropriate, but prior land use should be considered when comparing possible locations.

How Can Communities Protect Their Interests?

Communities are not limited to choosing between unconditional approval and total opposition.

Local governments can establish standards addressing:

  • Allowed zoning districts
  • Setbacks
  • Building height
  • Noise limits
  • Landscaping and visual screening
  • Water use
  • Utility capacity
  • Environmental review
  • Emergency access
  • Generator testing
  • Hazardous materials
  • Public reporting
  • Decommissioning guarantees

Cumru Township adopted a Data Center Overlay District around the former Titus property. The ordinance limits where data centers may be located and establishes requirements addressing water, energy, noise, environmental effects, infrastructure, monitoring, and decommissioning.

Communities can also negotiate community benefit agreements.

These agreements may require developers to provide:

  • Payments to municipalities or community programs
  • Road or utility improvements
  • Workforce-development funding
  • Local hiring commitments
  • Environmental monitoring
  • Noise and water restrictions
  • Emergency-response resources
  • Other legally enforceable benefits

The quality of a community benefit agreement depends on its terms, transparency, enforceability, and the ability to monitor compliance.

Who Pays for the Electricity Infrastructure?

This may be the most important question for ordinary Pennsylvania residents.

A large data center may require:

  • New substations
  • Transmission upgrades
  • Distribution equipment
  • New generation
  • Grid-interconnection studies
  • Backup power
  • Long-term utility commitments

The central principle increasingly being discussed is cost causation:

The customer creating the infrastructure cost should pay for it.

Pennsylvania’s August 18, 2026 executive order requires developers seeking the preferred state permit-review path to make legally binding commitments addressing local approval, consumer electricity costs, community engagement, workforce investment, and environmental protection. It also removed data-center projects from the state’s fast-track permitting program. [pa.gov], [pa.gov]

The federal Ratepayer Protection Pledge similarly calls for data-center companies to build, bring, or buy the new electricity they need and pay for required delivery infrastructure rather than shifting costs to households and existing businesses. [whitehouse.gov], [whitehouse.gov]

Residents should still examine the actual utility agreement associated with each project. A general policy or voluntary pledge does not replace enforceable project-specific protections.

What Does This Mean for Berks County?

Berks County is already part of Pennsylvania’s data-center discussion.

The proposed TRON USA AI Campus would redevelop the former Titus Generating Station in Cumru Township. The first announced phase calls for a 200-megawatt AI data center on approximately 196 acres.

The location has several characteristics highlighted throughout the PAR presentation:

  • Former power-generation use
  • Industrial infrastructure
  • Transmission access
  • Water availability
  • Fiber connectivity
  • Proximity to Philadelphia and New York
  • Sufficient land for a large campus

That may make Titus more practical than placing a similar facility on productive farmland or beside a residential subdivision.

It does not answer every question.

Berks County residents should continue examining:

  • Full buildout and power demand
  • Cooling technology
  • Average and peak water use
  • Substation and transmission plans
  • Mechanical and generator noise
  • Construction and permanent employment
  • Taxes and incentives
  • Environmental review
  • Public costs
  • Emergency-response needs
  • Decommissioning requirements

Residents can follow proposed projects and environmental permits through Pennsylvania’s Data Center Permit Tracker. The tracker shows confirmed and unconfirmed projects and identifies environmental permits associated with each proposal. [gis.dep.pa.gov], [statescoop.com]

My Takeaway

Pennsylvania has legitimate reasons to attract data centers.

The state has energy resources, existing transmission infrastructure, industrial properties, water access, research universities, workforce programs, and a strategic location near major East Coast markets.

Communities also have legitimate reasons to demand safeguards.

Data centers can create investment, construction activity, tax revenue, and technology infrastructure. They can also create major electricity demands, water questions, noise, visual effects, and long-term infrastructure obligations.

The important question is not simply whether Pennsylvania should support or oppose data centers.

The better question is:

Is each project located, powered, cooled, regulated, and financed in a way that creates benefits while protecting the surrounding community?

That answer will depend on the actual details of each proposal.

Frequently Asked Questions

Why are data centers coming to Pennsylvania?

Pennsylvania has abundant energy, natural gas and nuclear generation, transmission infrastructure, former industrial sites, available water, research universities, and proximity to major East Coast markets. These features make the state attractive for AI and cloud-computing infrastructure. [extension.psu.edu], [eia.gov]

How much electricity does a data center use?

The amount varies substantially. A small micro facility may use less than 100 kilowatts, while a hyperscale AI campus may require 100 to 1,000 megawatts. The proposed first phase of the Titus campus is approximately 200 megawatts.

Do data centers use large amounts of water?

Some do, but water use depends heavily on cooling technology. Wet cooling consumes more water, dry cooling uses very little water but more electricity, and hybrid systems balance the two. Each project should be evaluated using its specific design and permit requests. [srbc.gov]

Do data centers create permanent jobs?

They create construction, technical, utility, supply-chain, maintenance, engineering, and security work. Construction employment may be substantial, but the permanent on-site workforce is generally much smaller than the number employed during construction.

What does Pennsylvania’s data-center growth mean for Berks County?

Berks County may receive investment, construction work, tax revenue, and industrial redevelopment through the proposed Titus campus. Residents should also monitor electricity infrastructure, water use, noise, environmental protections, job commitments, tax incentives, and decommissioning requirements.

Following Data-Center Development in Pennsylvania

Pennsylvania’s data-center industry is changing quickly. Project counts, technology, regulations, and energy policies may continue evolving.

I will continue following the proposed Titus campus and other developments that may affect Berks County residents, property owners, businesses, and real estate.

If you are considering buying, selling, or investing in Berks County, I would be happy to help you understand the local real estate market and identify public information relevant to a specific property.

Contact Ben Perfetto, REALTOR® with Coldwell Banker Realty, to discuss your real estate goals.