Amazon Invests Billions in Pennsylvania Cloud Expansion \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Amazon will invest $20 billion into two new data center complexes in Pennsylvania, including one built adjacent to a nuclear power plant. Governor Josh Shapiro hailed the project as the largest private sector investment in state history. The deal faces scrutiny over its energy sourcing arrangement.
Quick Looks
- Amazon announces $20B investment in two Pennsylvania data centers.
- One site connects directly to a nuclear power plant in Berwick.
- The second center is in Fairless Hills’ Keystone Trade Center.
- Project is the largest private-sector investment in state history.
- FERC reviewing legality of direct nuclear power deal.
- Pennsylvania offers tax breaks and $10M in workforce training.
- Governor Shapiro touts tech jobs and tax revenue.
- Amazon joins other Big Tech firms expanding infrastructure.
- Rapid AI and cloud growth fuels data center demand.
- Microsoft and others also pursuing nuclear-powered data centers.
Deep Look
In a move set to reshape Pennsylvania’s economic and energy landscape, Amazon Web Services (AWS) announced on Monday that it will invest $20 billion in building two large-scale data center complexes in the state. One will rise alongside the Susquehanna nuclear power plant in Berwick, northeastern Pennsylvania, and the other in Fairless Hills, near Philadelphia, on the grounds of the Keystone Trade Center — a revitalized former U.S. Steel site.
The announcement marks the largest private sector investment in Pennsylvania’s history, according to Governor Josh Shapiro, who praised the development as a major turning point for communities long left behind by industrial decline. At a press conference held in the shadow of the Susquehanna plant, Shapiro emphasized the project’s potential to generate construction employment, tech industry opportunities, and long-term tax revenue for local governments and schools.
“For too long, we’ve watched as talents across Pennsylvania got hollowed out and left behind,” said Shapiro. “This investment starts reversing that trend.”
While data centers are often criticized for offering relatively few permanent jobs, proponents argue that the construction phase provides a huge boost to the trades and local economies, and once operational, data centers generate millions in tax revenue annually.
The complex near the Susquehanna plant is drawing national attention for its direct connection to nuclear power — a strategy that allows AWS to bypass the congested public grid and tap directly into a high-output, zero-emission power source. The “behind-the-meter” arrangement was made possible by Amazon’s $650 million acquisition of a data center from Talen Energy, the plant’s majority owner, in 2023.
The deal aims to deliver 960 megawatts of power, roughly 40% of the plant’s capacity — enough to supply more than 500,000 homes. However, the Federal Energy Regulatory Commission (FERC) has blocked the agreement on procedural grounds, citing concerns about grid equity, pricing fairness, and regulatory precedent. Critics argue that such direct-to-plant deals may allow massive power users to skip grid fees, potentially raising costs or reducing access for others.
The FERC case is now seen as a test of future power procurement models for Big Tech, which increasingly needs massive, uninterrupted energy flows to support the explosive demand for cloud computing and artificial intelligence infrastructure.
These facilities are vital for powering the servers, routers, and cooling systems that keep the digital economy running. Yet, their energy intensity — particularly as AI models require vast processing capabilities — has forced cloud giants like Amazon, Microsoft, and Google to rethink how they source energy, with a growing focus on nuclear partnerships.
Pennsylvania is already becoming a hub for this trend. Microsoft recently signed a 20-year deal to restart the Three Mile Island nuclear reactor to power its data centers across four states. Separately, owners of the retired Homer City coal-fired plant are planning a $10 billion natural gas-powered data center complex on the site.
To secure Amazon’s investment, Pennsylvania is offering millions in incentives, including a $10 million commitment to workforce development. The funding will go toward training programs at public schools, community colleges, and union facilities to build a pipeline of workers skilled in IT, electrical systems, HVAC, and network engineering. Amazon will also benefit from Pennsylvania’s existing sales tax exemption on data center equipment — a common provision in most states seeking to attract cloud infrastructure.
The latest development adds Pennsylvania to a growing list of states securing multi-billion-dollar cloud investments. Since the beginning of 2024, Amazon has committed approximately $10 billion each to similar projects in Indiana, Mississippi, North Carolina, and Ohio, driven largely by its race to scale AWS ahead of rivals in the AI and cloud sectors.
Despite the economic promise, the long-term energy implications remain murky. If FERC ultimately blocks the Susquehanna deal permanently, AWS and others may be forced to rely on more conventional — and slower — utility connections, potentially delaying development timelines. At the same time, approval could encourage a wave of behind-the-meter deals that bypass public grid structures altogether, transforming how energy is distributed in the United States.
For now, Pennsylvania is leaning in, betting that tech’s hunger for computing power — and energy — will bring a new era of economic growth to its industrial corridors. Whether this investment fulfills its job-creation promises or sparks broader power equity debates, it positions the state as a major battleground in the digital infrastructure race of the 2020s.
Amazon Invests Billions
