Billions coming to Pennsylvania for natural gas and data center development

This article originally appeared in The River Reporter of Narrowsburg, N.Y., and is reprinted with permission.

Billions of dollars will be invested in natural gas and data center infrastructure throughout Pennsylvania as part of a push to make the commonwealth a hub for the development of artificial intelligence, with investments to include $25 billion for natural gas power generation in Northeast Pennsylvania.

Participants at the Pennsylvania Energy and Innovation Summit, held in Pittsburgh on July 15, announced around $90 billion worth of investment projects in total.

PPL, an Allentown-based utility that serves 3.6 million customers, joined with investment firm Blackstone Infrastructure to announce $25 billion for the data center and infrastructure development coming to Northeast Pennsylvania.

Generative AI systems, such as Chat GPT or Google Gemini, require power-hungry data centers to run their back-end computations. Pennsylvania is viewed as the ideal site for these data centers because of its ready access to the natural gas that can reliably meet their need for power.

According to a joint press release from the two companies, PPL estimates that 60 gigawatts of potential data center projects are being developed within its territory, with 13 GW in advanced planning stages.

“If all 13 GW come online, PPL estimates a 6 GW generation shortfall in PPL Electric Utilities service territory in the next five to six years,” the press release said.

To meet this demand, PPL and Blackstone plan to build, own and operate new power stations supplied by natural gas. These stations would power data centers under long-term energy services agreements.

“The joint venture is actively engaged with landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels to enable this new generation buildout,” release said.

Fracking ban could pose hurdle

Paula Chirhart, Blackstone managing director of public affairs, told The River Reporter that the company does not have any specifics to share at this time about where exactly the new power stations might be located.

However, the fracking ban currently in place throughout the Delaware River Valley could pose a barrier to siting these projects in Wayne or Pike Counties.

According to PPL and Blackstone, the new power stations will sit atop the natural gas basins exploited through fracking — the process of extracting natural gas or oil through creating fractures in the rock — and “can quickly connect to significant, available gas pipeline capacity.”

The Delaware River Basin Commission, an interstate body charged with protecting the Delaware River, placed a moratorium on fracking within the river valley in 2010, and banned it permanently in 2021.

The resolution that banned fracking cited “scientific and technical literature… conclusions of other government agencies” and “more than a decade of experience with high volume hydraulic fracturing in regions outside the Delaware River Basin” to decide that allowing fracking would “pose significant, immediate and long-term risks to the development, conservation, utilization, management and preservation of the water resources” of the Delaware River.

The Trump administration and local NEPA figures have attempted to challenge this ban on fracking.

Billions of dollars in investments

The full slate of investment projects announced totaled over $90 billion, with the possibility to create tens of thousands of jobs and position Pennsylvania as a leading hub for energy, artificial intelligence and innovation, according to a statement from U.S. Senator Dave McCormick, a Republican.

“As the nation’s second-largest energy producer and a global nuclear power leader, Pennsylvania is uniquely positioned to deliver the abundant, affordable energy that growing AI and advanced manufacturing sectors demand,” McCormick said.

Congressman Rob Bresnahan Jr., a Republican who represents Pennsylvania’s Eighth Congressional District, applauded the combined PPL and Blackstone investment.

“This confirms that leaders across the country know what I have known my whole life: Northeastern PA has the potential for greatness,” Bresnahan said. “Our region is full of untapped power, and is more than ready for new growth, investments and opportunities.”

Shapiro’s attendance draws fire

Gov. Josh Shapiro of Pennsylvania, a Democrat, appeared at the event alongside Republican President Donald Trump and McCormick.

A press release issued the same day from his office did not directly reference the new investment but highlighted his leadership in securing private investment in Pennsylvania and in ensuring the commonwealth’s AI readiness.

An open letter signed by 41 environmental advocates and private citizens slammed Shapiro’s decision to attend, claiming that it sent entirely the wrong message.

“It was clear when Trump took office that the people would need to rely on the states to take the climate action and provide the environmental protection that would no longer come from the federal government,” the letter reads.

“As the Democratic governor of the second-largest national gas producing state in the country, you are uniquely positioned to speed the transition away from dirty 20th century sources of energy,” the letter said. “Instead, you have chosen to speed only the permitting of fossil fuel and nuclear projects that will condemn future generations, including those of your own family, to climate chaos they may not be able to endure.”