Governor Shapiro discloses $20 billion investment in Amazon's artificial intelligence sector, including the establishment of a data center in Bucks County.

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Amazon is planning to invest a whopping $20 billion to expand its cloud computing and AI network across Pennsylvania. This colossal investment, the largest private-sector one in the state's history, was announced by Governor Josh Shapiro on Monday morning.

"This is a grand day, Peeps!" Shapiro told an enthusiastic gathering of politicians, business leaders, and trades workers in Berwick. "We're stepping up the pace, and Pennsylvania's back on the ball field, leading the charge once again."

The tech giant's foolproof plan first includes facilities in Falls Township, Bucks County, and Salem Township, Luzerne County. Other potential sites are still under consideration. The Falls Township location will be constructed at the Keystone Trade Center, a place famous for one of the world's massive steel mills. Salem Township's location will be nestled near the Susquehanna Steam Electric Station nuclear power plant.

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According to the governor's office, the expansion will create at least 1,250 long-term, high-paying jobs, aside from thousands of construction positions.

"These hardworking tradesmen would be building these data centers for years and years," said Shapiro, addressing his audience. "Our schools, our communities, and our law enforcement would all benefit from the abundance of new tax revenue coming in from this investment."

The AI-focused data camps ( spearheaded by Amazon Web Services) will supply the infrastructure needed for generative AI and cloud technologies, services Amazon offers to businesses and governments worldwide. AWS officials claim that the expansion in Pennsylvania is an effort to keep the U.S. on the cutting edge of global AI innovation.

"These facilities will serve as the core for America's AI infrastructure, ensuring that the U.S. stays ahead in global technology innovation," said Kevin Miller, AWS's vice president for global data centers.

As part of the investment, Amazon will partner with educational institutions and workforces in Pennsylvania to increase AI education, training, and career growth opportunities. Specific details about these programs haven't been divulged yet.

Shapiro was joined by Lieutenant Governor Austin Davis, Community and Economic Development Secretary Rick Siger, and PA Sen. Dave McCormick.

McCormick congratulated Shapiro on this massive win for Pennsylvania. "This didn't just happen by chance," McCormick said. "We have remarkable assets: the second-largest energy capabilities in the country, the fourth-largest natural gas reserves worldwide, a truly fabulous skilled workforce... we have everything here! This sets the stage for Pennsylvania's revival, putting us at the very top!"

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Environmentalists and energy specialists have warned about the increased energy requirements for AI advancements and the impact on energy producers. In 2023, domestic data centers consumed over 4% of the nation's total electricity, and that number could reach 9% by 2030[2]. Some have expressed concerns about the energy demands of the Niagara Falls and Salem Township data centers[1].

Plenty of power is needed to operate smooth-running data centers. Last month, Dave Souder, PJM Interconnection's executive director of systems operations, revealed that the demand for electricity—driven by AI and computer requirements—is outpacing supply, potentially causing consumer energy prices to rise[2]. If Amazon's agreement with Talen Energy (Susquehanna's primary owner) is finalized, it could lead to a decrease in the grid's power supply[1].

However, Shapiro views this as a victory for the Commonwealth, showcasing his administration's efforts to boost economic development by making it easier for companies to set up shop in the state.

"The reason we could pull this off is because of Pennsylvania's fast-track permitting system," said Shapiro, "allowing companies to know exactly how quickly they can acquire a permit, in a transparent and open process, giving corporations like Amazon the confidence that their projects will be completed efficiently."

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The expansion of Amazon's cloud computing and AI network, with a significant investment of $20 billion in Pennsylvania, will create numerous jobs and opportunities in finance, business, data-and-cloud-computing, and technology sectors.
With the construction of data centers in falls Township and Salem Township, Amazon aims to provide the infrastructure needed for generative AI and cloud technologies, bolstering Pennsylvania's position as a global leader in technology innovation.

Governor Shapiro discloses $20 billion investment in Amazon's artificial intelligence sector, including the establishment of a data center in Bucks County.