ARCHBALD – As the development of new data centers accelerates throughout Pennsylvania, Sen. Rosemary Brown (R-40) and Sen. Dave Argall (R-29) hosted a public hearing of the Senate Majority Policy Committee to review the potential impacts for nearby communities and the economy.
The hearing gathered economic development organizations, utilities, environmental commissions, municipal associations and other stakeholder groups for a discussion on the benefits and drawbacks of establishing data centers in Pennsylvania.
“I have heard from many residents who felt they lacked clear information about data centers and their potential impact on our community. Today’s hearing addressed that need directly,” said Brown. “I appreciate Sen. Argall and the Majority Policy Committee for joining us in the 40th Senatorial District today. I requested this hearing to ensure that reliable, factual information was accessible to our community.”
“We all have many questions about the rapid increase of data centers, as we saw today when more than 300 people attended our public hearing and hundreds more watched online,” said Argall. “Why are so many new centers needed? Why locate in Pennsylvania? How could this affect my neighborhood? Our goal today was to answer as many of these questions as we possibly could.”
Energy and Water Resources
One panel focused on two of the widely cited concerns with operating data centers – the demands on local electrical grids and watersheds.
- Christine M. Martin, president of PPL Electric Utilities, shared that summer peak energy demand will double in five to six years because of the growth of data centers.
“In practical terms, we are doubling the energy demand that took more than 100 years to reach,” said Martin. She noted infrastructure improvements and legislative changes to maximize the efficiency of the transmission grid are key to ensuring reliable electricity for all. She also stated that PPL customers may see decreased transmission costs because of new large-load customers.
- Andrew D. Dehoff, P.E., executive director for the Susquehanna River Basin Commission, discussed potential challenges to the water supply. He shared how the commission offered incentives to four power plants to explore dry cooling technology to reduce water demands.
Economic Development
Another panel featured employers and economic development organizations.
- Neal Lesher, director of government affairs for the Pennsylvania Chamber of Business and Industry, commented on why Pennsylvania is well-positioned to host new data centers.
“With our unmatched energy resources, reliable water supply, industrial and digital infrastructure, workforce potential and strategic geographic location, we have all the ingredients to become a national, and even global, leader in data center investment and AI-driven innovation,” said Lesher.
- John L. Augustine III, president and CEO of Penn’s Northeast, expanded on why northeast Pennsylvania could host data centers – “location, location, location.”
“Recently, a proposed 750,000-square-foot data center in York County is expected to amount to a $500 million project and bring with it more than $6 million to the local economy. Tax revenue for Fairview Township would increase from $396 to $396,000 for the property; revenue for the fire department would increase from $52 to $52,000; revenue for York County would increase from $1,560 to $1,565,070, and revenue for the West Shore School District would increase from $4,054 to $4,066,415,” said Augustine.
- Merle Madrid, senior manager of public policy for Amazon Web Services (AWS), discussed AWS’ plans to invest $20 billion and create at least 1,250 new jobs in Pennsylvania.
To support their plans, AWS is investing in energy capacity and workforce development programs. Amazon made a commitment to be water positive, which means returning more water than they use to the communities where they operate.
Local Impact
The final two panels focused on the potential positive and negative impacts data centers could have on nearby communities.
- Esch McCombie, Esq., the co-chair of McNees Wallace & Nurick’s Real Estate Group:
“Data centers represent a unique proposition from a local land use perspective. They are low-traffic, high-value assets that generate substantial tax revenue for school districts, municipalities, and counties without the strain of increased commuter traffic, truck traffic, or new student enrollments,” said McCombie. He noted that many of the concerns with these centers can be addressed through strategic planning and engineering.
- Kristopher Gaszi, assistant director and counsel for the Pennsylvania Local Government Commission:
“Some communities are also seeking to directly engage developers for Community Benefit Agreements. These contract documents are often utilized to mitigate impacts from other forms of industrial development like energy generation facilities and are now being explored for data center projects,” said Gaszi.
- John Yudichak, president of Luzerne County Community College, provided an update on the Pennsylvania Commission for Community Colleges’ work to prepare for the workforce needs that come with new data centers.
“To meet the demands of data center development in Pennsylvania, community colleges are collaborating and combining resources like never before to build a new and historic Technology and Trades Workforce Consortium,” said Yudichak.
CONTACT: Mackenzie Mueller (Brown)
Jim Brugger (Argall)