Amazon invests $20 billion in Pennsylvania data centers amid scrutiny

In early June 2025, Amazon announced a significant investment of $20 billion to establish two data center complexes in Pennsylvania. One of the centers will be positioned adjacent to the Susquehanna nuclear power plant in northeastern Pennsylvania, while the other will be situated in Fairless Hills at the former U.S. Steel mill site known as the Keystone Trade Center. This move represents the largest corporate investment in the state's history, reflecting the growing demand for cloud computing and artificial intelligence infrastructure. The decision to place a data center next to a nuclear power plant highlights the need for reliable power sources to support energy-intensive operations. Amazon's Vice President of Global Data Centers, Kevin Miller, indicated that the company is responding to the increasing demand for data centers driven by the rise of artificial intelligence. The investment aligns with Amazon's broader strategy to enhance its capabilities in cloud computing, particularly in light of competition from other technology giants. The new facilities are intended to support the rapid growth in power requirements for servers and data processing systems that are essential for artificial intelligence applications. In the context of energy management, the planned data center by the Susquehanna nuclear power plant has drawn federal scrutiny due to a controversial arrangement termed a 'behind the meter' connection, which would allow Amazon to draw power directly from the power plant. This specific arrangement has raised concerns among regulators regarding equity for other power consumers and the long-term impacts of diverting energy to high-paying clients. The Federal Energy Regulatory Commission has yet to provide clarity on the regulatory implications of such deals, contributing to uncertainty surrounding Amazon's plans. Amazon's investment also holds broader implications for the local economy, as it is expected to generate numerous jobs and foster workforce development initiatives in the communities surrounding the facilities. Local leaders, including Governor Josh Shapiro, have welcomed the investment, emphasizing its potential to benefit the region significantly. In comparison to other states, recent investments by Amazon in data centers also include approximately $10 billion each in states like Mississippi, Indiana, Ohio, and North Carolina, reflecting a strategic effort to expand its infrastructure capabilities amidst growing competition in the tech industry.