Why Data Center Developers Are Choosing Pennsylvania

Justine Belyus, Executive Director of Business Marketing for the Pennsylvania Department of Community & Economic Development, explains why Pennsylvania is ready to power the next generation of digital infrastructure.
Sept. 24, 2025
3 min read

When it comes to building digital infrastructure, companies need speed to market, certainty in development, and the ability to scale seamlessly. Increasingly, they’re finding all three in Pennsylvania. With its prime Northeast location, reliable and abundant energy resources, and a deep pipeline of skilled workers, the Commonwealth is quickly emerging as one of the nation’s most competitive destinations for data center development.

That reputation is already attracting global players. In June, Amazon Web Services announced a $20 billion investment to develop state-of-the-art data center campuses across the Commonwealth. Not only is it the largest private investment in Pennsylvania’s history—it’s a signal to the entire industry that Pennsylvania is ready to compete.

The Commonwealth offers a unique blend of competitive advantages that position it as a national data center powerhouse.

  • Location: Situated in the center of the Northeast corridor, companies operating here gain proximity to major economic centers along the East Coast—from New York City to Washington, D.C.—while avoiding many of the land or cost challenges of larger metro areas. It’s a strategic advantage that puts data centers closer to end users while making large-scale development possible.
  • Energy: As one of the top energy-producing states in the U.S., Pennsylvania offers competitive rates and a reliable grid. The Commonwealth also offers a growing mix of renewable options. In fact, former hydro and gas facilities are being revitalized to support AI energy demands, ensuring capacity for long-term growth.
  • A Business-Friendly Climate: From Keystone Opportunity Zones to sales and use tax exemptions on equipment, the Commonwealth offers a robust suite of incentives for companies who want to invest. By 2031, the Commonwealth’s corporate net income tax will drop to 4.99%—the lowest among neighboring states with a corporate income tax. And for companies looking to move quickly, the PA Permit Fast Track Program provides a single point of access to permits, resources, and approvals—accelerating complex, high-impact projects while keeping timelines on track.
  • Sites & Infrastructure: Pennsylvania offers a number of shovel-ready sites, along with an extensive logistics network of highways, rail, international airports, and ports. This infrastructure makes large-scale builds possible and keeps ongoing operations efficient, while lowering the barriers for expansion.
  • Talent Pipeline: With nearly 300 higher education institutions—including Carnegie Mellon and the University of Pennsylvania—the state produces world-class graduates in computer science, engineering, and IT. Workforce development programs ensure data centers can recruit and retain skilled professionals at every level.

As the demands of technology and innovation continue to change, companies are rethinking where and how they build. Pennsylvania’s location, energy resources, incentives, and people make it a destination where data centers can scale confidently. AWS’s landmark commitment underscores what industry leaders are already seeing: Pennsylvania is ready to power the next generation of digital infrastructure.

Visit PAGetsItDone.com to learn more about the ways Pennsylvania can help with your next data center project.

About the Author

Justine Belyus

Justine Belyus is Executive Director of Business Marketing for the Pennsylvania Department of Community & Economic Development.

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