Demand for Data Centers Increasing in Pennsylvania

The rapid increase in the number of data center across the country stemming from the rise of artificial intelligence and the use of cloud computing is also being seen in Pennsylvania.

“Big Data Centers, Big Problems,” a recent report by PennEnvironment, notes that between 2021 and 2024, the number of data centers in the U.S. roughly doubled from 2,667 to 5,381, and these numbers are projected to continue upward. Pennsylvania now has 73 such centers, with more in the planning stages.

At their most basic level, data centers are large, specialized buildings that contain a large number of computer systems, servers, networking equipment, and storage infrastructure critical for companies to operate using cloud networking. These centers operate around-the-clock and consume a large amount of power, which varies depending on their size. Smaller centers can consume anywhere from 1 to 5 megawatts (MW) of power while large centers average 20 to more than 100 MW, according to Data Center Knowledge. For reference, 100 MW could provide power to an estimated 17,000 homes.

Data centers in Pennsylvania presently account for around 3.2% of the state’s total energy usage, but a number of new projects have been announced that will require even more electricity. Given the demand challenges facing the PJM regional electric grid, a number of these projects plan to co-locate with a power generation source, or build their own power plants.

TECfusions, a global data center operator, recently announced a new data center project in Upper Burrell, Westmoreland County, proposed to have 3 gigawatts (GW) of electric capacity through on-site natural gas generation. A typical nuclear power plant generates 1 GW of electricity, so the scale of this project is massive. TECfusion said in a release that excess power may be directed to the regional electric grid.

Microsoft also recently reached signed a 20-year agreement to buy power from a Three Mile Island nuclear reactor near Harrisburg that will be restarted. The electricity will be used to power Microsoft’s data centers. In addition, Amazon recently purchased a Talen Energy nuclear-powered data center campus in northeast Pennsylvania.

PJM Interconnection, the regional electric grid operator, is moving forward with $5.9 billion in projects to improve reliability and support the large data centers, to the grid according to Data Center Dynamics. However, more work is needed to make sure the grid has enough baseload energy to avoid blackouts during extreme weather events or peak demand periods.

The amount of projected increase in electric demand from data centers varies widely and is highly uncertain. A report from the Electric Power Research Institute predicts data center electricity demand could grow by as little as 29% or as much as 166% from 2023 levels by 2030. Artificial intelligence is in its nascent stages, and as AI technology develops, more computing power will likely be needed, but the energy efficiency of these systems is also likely to improve.

While the amount of future electric generation is still unclear, it is certain that demand will increase over the next decade, and steps must be taken to meet the challenge. The CEPM will hold a webinar on the increase in data centers at 11 a.m. April 9. Click here to learn more and register.