PITTSBURGH — Pennsylvania’s enthusiasm for large-scale data center projects, initially seen as a potential economic revival for the Rust Belt, has encountered increasing scrutiny amid environmental and community concerns.
Last year, then-President Donald Trump highlighted commitments from technology giants including Google, Amazon, and Anthropic to invest over $90 billion in data centers and related infrastructure in the Pittsburgh area and broader Pennsylvania. The initiative aimed to position the region as a hub for artificial intelligence development and technology innovation, promising substantial economic growth and job creation in an area still grappling with the long-term effects of the steel industry’s collapse.
At the time, Governor Josh Shapiro, a Democrat, supported the push by expediting approvals and offering incentives for data center development. More than 120 data centers were planned across the state. However, the political and public response has since shifted, with data center expansion becoming a contentious issue in this year’s midterm elections.
Two weeks ago, Governor Shapiro imposed new restrictions on data center approvals, describing developers as “predatory” and signing an executive order establishing what he called the nation’s strictest regulations for these facilities. The new measures halt expedited approvals and require local community consent before projects can proceed. Officials cited residents' concerns over the rapid pace and scale of construction, as well as environmental impacts.
Experts point to significant challenges associated with these facilities, particularly their energy and water consumption as well as emissions output. Costa Samaras, director of the Scott Institute for Energy Innovation at Carnegie Mellon University, described the current data center expansion as a largely unregulated “free-for-all.” Environmental groups warn that seven of the proposed power plants in Pennsylvania—a number of which are being converted from coal to natural gas to supply the data centers—could emit around 68 million tons of carbon dioxide or equivalent greenhouse gases annually. This figure roughly equals the emissions from 15 million gasoline-powered vehicles.
Despite environmental concerns, many labor unions and business representatives in western Pennsylvania are optimistic about the economic benefits. Projects underway include a conversion of the Homer City coal-fired power plant to a large gas plant supporting a hyperscale data center, as well as a $10 billion development involving retrofitting another coal plant to burn natural gas. Amazon alone has committed $20 billion toward multiple data centers in the state, including sites adjacent to a nuclear plant and on a former U.S. Steel property.
Rob Bair, president of the Pennsylvania Building and Construction Trades Council, emphasized that the ongoing construction boom could provide lasting employment opportunities if managed properly. A March study commissioned by several Pennsylvania business coalitions projects that data centers could contribute $12 billion to the state’s annual economic output and create more than 19,000 new jobs by 2036.
The data center boom is already linked with a resurgence in technology manufacturing in the region, marked by investments such as an $86 million Mitsubishi electronics factory, a $70 million Hitachi transformer facility, and a $166 million GE Vernova gas turbine manufacturing plant.
Western Pennsylvania’s shift from its historic industrial base, which once centered on coal mining and steel production, to a technology-driven economy reflects broader economic transformations. The region’s decades-long decline following the steel industry's collapse in the 1980s was partially offset by the fracking boom in the early 2000s, which increased natural gas-related activities but also contributed to rising emissions.
As the region navigates the balance between economic revitalization and environmental sustainability, Pennsylvania’s approach to data center development remains at a critical crossroads.