Northeast Pennsylvania is a hot spot for potential data centers

WILKES-BARRE — John Augustine, president/CEO at Penn’s Northeast, says Northeast Pennsylvania has become one of the most sought-after landing spots for data centers.

The question is, why?

“We are seeing a tremendous amount of interest in data centers coming to NEPA,” Augustine said. “They will bring good-paying jobs, lots of opportunities and add to the tax base. It’s a win, win, win situation.”

Augustine said several companies have contacted his office about building a data center in the region, but they can’t be revealed for confidentiality reasons.

One developer, NorthPoint Development, recently gained approval for a 15-building data center campus in Hazleton.

Two others are planned around the Invenergy natural gas plant in Jessup, and others have been checking out undisclosed locations in the region.

“Much of land that would be developed is mine-scarred land,” Augustine said. Data centers would offer good, family-sustaining jobs and improve the landscape of NEPA.”

Augustine noted that data centers require power to operate. He said PPL stands ready to meet the challenge and the region’s bountiful supply of natural gas in the Marcellus shale would also be key in attracting developers.

Augustine also noted that Amazon Web Services is under construction in Salem Township.

“Our region is hot right now,” Augustine said. We are under a microscope, so to speak. We have the land, the water and, most importantly, we have the power.”

Augustine said we could see one to three new data center projects announced this year.

In February, the Times Leader reported that NorthPoint Development is seeking a Luzerne County real estate tax break for a 15-building data center on a 1,280-acre site in Hazle Township.

Called “Hazelnut,” the property slated for a data center is near the Humboldt Industrial Park’s north zone close to Interstate 81.

The public water system will only be used for restrooms and other standard business uses.

Due to the climate in this area, NorthPoint expects an air-cooled system will suffice most of the time to minimize reliance on water for cooling. Because the public water system won’t be tapped for cooling, the developer is in discussions about accessing some “gray water” from the wastewater treatment plant on the opposite side of I-81 in West Hazleton.

NorthPoint said investments made at the new data center will help reinforce and strengthen the electric system for all utility customers, creating fewer power outages and disruptions.

If there are blackouts, diesel-powered generators would provide back-up power to the data center.

The project is expected to create approximately 900 permanent jobs, including electrical engineering and information technology positions that should provide family-sustaining wages.

What is a data center? What are hyper data centers?

Augustine said there are different types and sizes of data centers. The one in Berwick for Amazon Web Services is a hyper-scale center.

A data center essentially is a large, specialized facility that houses a vast network of computer servers, storage devices, and networking equipment, acting as the digital heart of modern businesses by storing, processing, and distributing massive amounts of data, powering everything from online banking to streaming services, and essentially making the internet function as we know it today.

So why the need and explosive growth for data centers?

Artificial Intelligence is the fastest growing technology — ever. Also there has been a tremendous increase in the use of “the cloud.”

What is needed for a data center?

“Power and lots of it!” Augustine said. “Data centers can use anywhere from 50MW to 500MW.

Land — smaller data centers can be on a few acres, where hyper centers require 200-1,000 acres

Water — many data centers currently use a lot of water to cool the computer servers housed within. However, technology is changing to offer different options, like air cooling.

Where will potential data centers go?

Because of the need for large amounts of power and land — Augustine says many data centers need to sit close to infrastructure like a power plant and high transmission power lines.

A recent Associated Press story said tech giants are increasingly looking to strike deals with power plant owners to plug in directly, avoiding a potentially longer and more expensive process of hooking into a fraying electric grid that serves everyone else.

The AP story said:

“The arrangement between the plant’s owners and Amazon Web Services — called a ‘behind the meter’ connection — is the first such to come before the Federal Energy Regulatory Commission. For now, FERC has rejected a deal that could eventually send 960 megawatts — about 40% of the plant’s capacity — to the data center. That’s enough to power more than a half-million homes.

“It’s not clear when FERC, which blocked the deal on a procedural ground, will take up the matter again or how the change in presidential administrations might affect things.

“For AWS, the deal with Susquehanna satisfies its need for reliable power that meets its internal requirements for sources that don’t emit planet-warming greenhouse gases, like coal, oil or gas-fueled plants.

“A favorable ruling from FERC could open the door to many more huge data centers and other massive power users like hydrogen plants and bitcoin miners, analysts say.

“In the meantime, the agency is hearing arguments for and against the Susquehanna-AWS deal.”

Key points about data centers

The first data centers emerged in the 1940s with the development of early computers like the ENIAC, where large rooms were needed to house and operate these machines.

As computers became smaller and more powerful, data centers evolved to accommodate more servers and complex networking systems, with the “dot-com boom” of the late 1990s significantly accelerating their growth.

Critical components

• Servers: The core of a data center, responsible for processing and storing data.

• Storage systems: High-capacity storage devices to house large volumes of data.

• Networking infrastructure: Complex network systems to efficiently route data between servers and users.

• Cooling systems: Essential for maintaining optimal temperatures to prevent overheating of equipment.

• Power supply: Reliable power sources with backup generators to ensure uninterrupted operation.

Different Types of Data Centers

• On-premise: Owned and operated by a single organization within their own facility.

• Colocation: Companies rent space in a shared data center to house their servers.

• Cloud data center: Large-scale data centers operated by cloud computing providers, offering services to multiple customers.

Challenges and Considerations

• Energy Consumption: Data centers are significant energy consumers, driving focus on energy efficiency strategies.

• Security: Protecting data from unauthorized access and cyber threats is paramount.

• Scalability: The ability to adapt to changing data storage and processing needs.

In summary, data centers are the backbone of the digital world, providing the infrastructure needed to store and process massive amounts of data, powering the services and applications we use daily, with continuous advancements in technology shaping their design and capabilities to meet the growing demands of the digital age.

PPL statement

Dana Burns, Director of Communications at PPL Electric Utilities, issued the following statement.

“As part of our commitment to building a stronger, smarter and more reliable electric system, PPL Electric Utilities continually invests in enhancing our infrastructure to meet the growing needs of our customers. We recognize that a resilient power grid is essential in supporting new businesses, fostering economic growth and ensuring our communities thrive.

“Data centers are part of the infrastructure of the 21st century. Our daily use of laptops, cell phones and the internet rely on data centers. Data center build-out in Pennsylvania positions the state to remain at the cutting edge of technology and productivity.

“We have had significant interest from data center developers, in part due to the reliability and capacity of our transmission system, as well as our response times. We have more than 9GW of data center projects in advanced stages and see substantial long-term growth opportunities throughout our service territory.

“Infrastructure upgrades related to these projects will bring strong reliability benefits to the region along with future reduced transmission service costs for all customers.

Data centers are powerful engines for local economic growth, creating new jobs, boosting tax revenues, and fostering infrastructure improvements that benefit the broader community. Communities that attract data centers set the stage for long-term success, creating a sustainable business and tech ecosystem that will support future generations.

As the data center industry grows in Pennsylvania, we will continue to provide the high-quality, reliable service our customers rely on, while supporting sustainable growth and innovation across the region. We remain dedicated to providing the infrastructure that powers progress and drives success for both our current and future customers.”

Rep. Bresnahan, Chamber President comment

U.S. rep. Rob Bresnahan, R-Dallas Township, said data centers have the power to be significant investments in our community, providing both immediate and long-term economic benefits as well as skilled construction jobs.

“I am pleased to hear that companies are looking to Northeastern Pennsylvania for their data centers, which can serve as catalysts for economic growth and technological innovation for our region as we work towards fostering a 22nd century workforce,” Bresnahan said. “The second fastest growing industry in Northeastern Pennsylvania is energized land, which will help power these data centers. I look forward to these investments and encourage companies to look to Northeastern Pennsylvania as a home for economic and technological advancements.”

Luke Bernstein, President/CEO of the Pennsylvania Chamber of Business and Industry, said Pennsylvania is at the epicenter of the AI and Data Center revolution.

“The Commonwealth is well situated from a location perspective,” Bernstein said. “We have the ability to harness our natural resources to create electricity and fuel this economic opportunity, while ensuring our national security interests and benefiting the local communities. Marcellus Shale is the foundation for this future. Pipelines and new power plants will drive innovation and environmental sustainability.

The PA Chamber will discuss this opportunity with local leaders at Lackawanna College on May 2.

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