Pennsylvania is experiencing rapid growth in data center development as companies expand computing infrastructure needed to support artificial intelligence (AI) and cloud technologies. A new report released today (Feb 3) finds that rising electricity demand from data centers could significantly reshape the state's energy system, potentially affecting electricity costs, power generation resources, and local air quality.
The report, prepared by Clean Energy Group with contributions from Physicians for Social Responsibility Pennsylvania and Clean Air Council, examines projected energy demand from data centers and evaluates how continued growth could influence Pennsylvania's electricity grid and infrastructure planning.
Pennsylvania has become an attractive location for data center development due to its available land, strong energy resources, and proximity to major population centers. However, the report finds that increased demand from large-scale computing facilities may require substantial new electricity generation and transmission investments.
"Massive investment in data centers to fuel the AI boom is straining the capacity of the electric grid," said Seth Mullendore, President and Executive Director of Clean Energy Group. "These power-hungry facilities are leading to the delayed retirement of aging coal and gas plants and the speculative buildout of expensive and inefficient new gas plants."
"AI data centers in 2026 have not yet produced the promised technological revolution," said Alex Bomstein, Clean Air Council Executive Director. "What they have produced, even before being built, is sky-high electric bills and a rush to build new and polluting fossil fuel power plants."
Among its findings, the report notes that projected data center expansion could increase reliance on fossil fuel power generation if additional clean energy resources are not developed alongside new facilities. The analysis also highlights potential community and environmental impacts related to siting decisions and increased electricity consumption.
"Many Pennsylvania communities - especially those already overburdened by pollution - are experiencing poor air quality and rising energy costs that directly impact health," said Tonyehn Verkitus, Executive Director of Physicians for Social Responsibility Pennsylvania. "Acknowledging how data centers further exacerbate these issues is critical to ensuring new development does not further harm vulnerable residents."
The report outlines a range of policy and planning considerations for state and local officials, utilities, and community stakeholders, including strategies to manage electricity demand growth and support cleaner energy development.
Clean Energy Group will host a public webinar discussing the report's findings on Wednesday, February 25 at 1pm ET.
The full report is available at: cleanegroup.org/padatacenters
About Clean Energy Group
Clean Energy Group, a national nonprofit organization, provides innovative technical, economic, and policy solutions to accelerate the equitable deployment of clean energy technologies. Learn more at www.cleanegroup.org.
CONTACT:
Samantha Donalds
Communications Manager
Clean Energy Group
Ph: 508-654-5813
Email: sam@cleanegroup.org
Clean Energy Group
www.cleanegroup.org
