Amazon investing $20 billion in AI data centers in Pennsylvania
In a bold move that underscores the escalating arms race for data infrastructure among tech giants, Amazon announced Monday that it will invest $20 billion into two massive data center complexes in Pennsylvania. One of the centers will be built adjacent to the Susquehanna nuclear power plant in the northeastern part of the state, while the other will rise in Fairless Hills at the Keystone Trade Center—on land once occupied by a U.S. Steel mill.
According to Kevin Miller, vice president of global data centers at Amazon Web Services (AWS), this investment reflects Amazon’s urgent push to build out its cloud and artificial intelligence (AI) capabilities. With cloud computing and AI applications placing increasing demands on power-hungry infrastructure, data centers like these form the backbone of the tech economy.
Largest Capital Investment in Pennsylvania History
Governor Josh Shapiro hailed the move as the largest capital investment ever made in Pennsylvania. Amazon's project joins a wave of data center developments sweeping across the United States, including similar $10 billion commitments by the company in Mississippi, Indiana, Ohio, and North Carolina in 2024 alone.
The Nuclear Connection – A Faster Route to Power
What sets the Susquehanna site apart is Amazon’s strategic alignment with nuclear power. Amazon acquired a data center from Talen Energy—majority owner of the Susquehanna nuclear power plant—for $650 million. The goal: to eventually draw up to 960 megawatts of power, nearly 40% of the plant’s output, through a direct “behind-the-meter” connection. That’s enough electricity to power over 500,000 homes.
This arrangement allows Amazon to bypass the congested public electricity grid and secure a long-term, stable energy supply, significantly speeding up data center deployment. But it’s also drawing scrutiny.
Regulatory Hurdles and National Implications
The deal between Amazon and Talen is currently under review by the Federal Energy Regulatory Commission (FERC). The core issue: whether it's fair for large energy consumers like Amazon to tap directly into power generation sources without paying grid access fees—fees that fund maintenance and upgrades for the broader electrical system.
While FERC has so far blocked the arrangement on procedural grounds, the case could set a critical precedent for how future data centers procure power. Questions remain about whether such deals might siphon affordable energy away from the grid and prioritize high-paying corporate customers over public access.
A State Turning to Tech and Energy Hybrids
Pennsylvania is fast becoming a proving ground for energy-intensive tech infrastructure. Microsoft recently inked a deal to help restart the defunct Three Mile Island nuclear reactor to supply energy to its data centers in four states. And the former site of the state’s largest coal-fired power plant is being reimagined as a $10 billion natural gas-powered data center campus.
These developments suggest that the future of tech and energy may be increasingly interwoven—especially in states like Pennsylvania that have both energy capacity and industrial real estate.
The Bigger Picture
Amazon’s investment is more than just a data center buildout; it’s a statement on the future of AI and cloud services. As the demand for computing power accelerates, so too does the race to secure reliable, scalable, and independent energy sources. Pennsylvania’s mix of legacy industrial sites, nuclear power, and infrastructure ambitions make it a key player in that race.
Yet, with regulatory battles brewing and local energy equity on the line, the balance between innovation and fairness will be closely watched. Amazon may have staked a claim to the future of data infrastructure, but how that future unfolds remains uncertain.
