Pennsylvania is rapidly emerging as a major center for gas-powered data centers, based on newly released analysis from research firm BloombergNEF, writes Chrissy Suttles for AXIOS.
Pennsylvania’s data center capacity is being boosted by policy incentives, billions in investments, and abundant natural gas reserves, as developers compete to secure new power sources to meet rising AI-driven computing demand.
Power demand from U.S. data centers is expected to climb to 106 gigawatts by 2035. To put this in perspective, one gigawatt can supply electricity to between 750,000 and 1 million homes.
Between March 2024 and March 2025, Pennsylvania expanded its data center capacity by approximately 2.4 gigawatts.
In addition, a $10 billion project aims to transform the Homer City Generating Station into a 4.5-gigawatt gas plant within the next two years, alongside a new three-gigawatt facility in Upper Burrell being developed by TECfusion, scheduled to open in the coming months.
This surge in proposed data centers is raising concerns among residents over increasing energy costs, strain on the power grid, greater reliance on natural gas, consumer protections, and effects on housing prices.
Meanwhile, state leaders argue that AI will stimulate economic growth and strengthen Pennsylvania’s position as a technology leader.
Read more about how Pennsylvania is increasing the number of data centers across the state in AXIOS.
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