Data Centers and the Heritage of Energy Innovation in Pennsylvania

Summer heat hits later here in the Keystone State than it does elsewhere.  As our air conditioners started to hum on the Wednesday after Memorial Day, The Electric Power Research Institute (EPRI) released a report projecting that artificial intelligence (AI) may lead to data centers consuming 9% of the world’s electricity by 2029. 

Cooling our homes and offices is a far less complex form of thermal management than cooling the tremendous heat thrown off by AI chips in data centers.  But if anyone is up for that IT cooling challenge, it is Pennsylvanians.  

Given Pennsylvania’s long history of energy innovation, there is no surprise that power-intensive data center projects are being planned left and right in our state, most recently via a presidential announcement in Pittsburgh. 

Let’s take a look at some of the Commonwealth’s energy milestones.

First American Coal Mine:  Hard coal was being scavenged in Virginia in the early 1700s but the first time the more useful bituminous coal was mined  before our country was established, in 1761 near Pittsburgh.  The area is known as Coal Hill to this day.  

First American Steam-Powered Railroad:  In 1829 Honesdale, north of Philadelphia, became the home of the first American railroad.  While that steam locomotive was of British origin, Pennsylvania was shortly thereafter a home to railway innovation. 

First American Oil Well: As Pennsylvania natives know, the first US commercial oil well was established in 1859 in Titusville.  As a result, many consider it to be the birthplace of the commercial oil industry..  

Clean Coal Technology and Transition to Natural Gas: Pennsylvania has been a leader in the development and adoption of clean coal technology, though the economics of natural gas have resulted in a drastic reduction in the state’s reliance on coal.  Advances in fracking and the Marcellus Shale formation have provided our state with cheap and abundant natural gas. Pennsylvania’s energy production was nearly 50% coal-based in 2010, which was reduced to 25% in 2016.  By 2024 it was at 5%, with  natural gas filling the void with just shy of 60% of our power generation mix. 

Nuclear Power for Data Centers?  Pennsylvania was also at the forefront with nuclear power, with the nation’s first commercial nuclear plant, the Shippingport Atomic Power Station, which opened in 1957.  Given the massive energy needs of artificial intelligence nuclear energy has gotten a long, hard look and Microsoft, Google, and Amazon have all announced major investments, including in plants in Pennsylvania.  However, it’s unclear what portion of AI power requirements can be fueled by nuclear power, that power source’s history of budget and cost overruns for new plants.

Usable Data Center Power Today and into the future: While it’s hard to predict what data center power supply and demand will look like 10 years from now, there is world-class data center inventory available locally today.  Reading, PA has a Tier 3 data center featuring several megawatts of available power (with a roadmap to expand to 10MW) with a proven track record of powering and cooling high density deployments.  Whether you’re seeking a data center home for a hyperscaler, have requirements for a large enterprise, or are a local outfit that needs a single rack, Direct LTx may be the colocation data center you’ve been looking for.   Email strategy@directltx.com to take a look.