(The Center Square) – The Senate Majority Policy Committee convened at Valley View High School in Archbald to hear over three hours of testimony on the future of data centers in the state.
Major players like Amazon, representatives of the state’s energy and water resource providers, local municipal leaders, and building trade representatives all met to offer their perspective on the growing industry.
“Why do we need data centers, and why is it so pressing?” asked Sen. Rosemary Brown, R-Scotrun, summarizing a question by many encountering the onslaught of pro-data press from federal, state, and local government.
John Augustine, president and CEO of Penn’s Northeast, referred to the advent of data centers and expansion of artificial intelligence as the “fourth industrial revolution” and encouraged the senators to embrace the promise of the new technology to bring economic boosts to the state.
Many among the group worked to allay the fears legislators are hearing time and again from their constituents, who they say feel largely left out of the decision making process when it comes to approving new construction in their communities. Water use, power demand, and noise pollution are among the concerns. Advocates are also working against perceptions that tax abatements and small operating teams diminish the job and local revenue benefits advertised.
Merle Madrid, senior manager for Amazon Web Services Public Policy, said that his organization works to make sure any new projects take into consideration the unique needs of the surrounding area.
As to the jobs, Madrid said that the new centers in Bucks and Luzerne Counties are expected to generate 1,250 high-skilled jobs and represents an investment in community and education for workers.
At a recent press conference, Gov. Josh Shapiro said that the centers being developed in Pennsylvania differ from those in spaces like northern Virginia which may employ just 50 or 60 employees at a given time.
Tony Seiwell, International Representative of Laborers’ International Union of America, said that his and other unions welcomed the work the centers would bring to the state so long as the projects stick to prevailing wage standards and work with laborers from within the state rather than drawing on outside support.
As to the water and power draw of the centers, stewards are often themselves left in the dark with data protected by nondisclosure agreements and precise numbers out of reach. Deals with local suppliers can create a degree of separation between operators and the primary managers of a larger resource, like the Delaware River Basin Commission, or DRBC.
“To date, the DRBC has not received any applications for data center projects, because the existing data centers in the basin purchase water from public water supply systems rather than operate their own withdrawal Page 2 systems,” said DRBC Executive Director Kristen Bowman Kavanagh. “As a consequence, water systems that sell water to data centers must consider whether their supplies are capable of continuing uninterrupted during low-flow conditions. DRBC and other water resource managers need to consider whether water for data centers should take priority over the needs of other domestic, commercial, industrial, and agricultural uses during periods of shortage.”
Amazon has a pledge to be water positive by 2030, using AI technology to identify and repair leaks before they deplete existing water supplies and using advanced methods to keep servers cool.
Sen. Kristin Philips-Hill, R-Jacobus, asked what the state could do to “make sure we’re not exporting the value” created by the centers, just as the state has become a net exporter of energy which some claim disproportionately serves other members of the PJM power grid who themselves produce less energy.
“In eastern and central Pennsylvania, our service territory is on the verge of remarkable growth—we anticipate summer peak energy demand of 7.5 GW will double in just the next five to six years,” said PPL president Christine M. Martin. “In practical terms, we are doubling the energy demand that took more than 100 years to reach.”
“PPL Electric is prepared and capable of connecting this new load and more as a result of significant investments in the reliability and resiliency of its transmission and distribution system to better serve its customers,” said Martin.
Meanwhile, local leaders say that there is no single approach to data centers. A municipality considering a proposal to add one to their community should carefully consider each facet of the construction and operation process.
“Like any land use, we should not rush their development for the sake of a headline or news hit,” said Holly Fishel, policy and research director at the Pennsylvania State Association of Township Supervisors. “These projects will have long-lasting impacts on the communities that host them, which is why it is critical to preserve local decision making and avoid one size fits all state defined schemes.”
