The benefits of Pennsylvania’s reliable and affordable natural gas is the Commonwealth’s most competitive asset in the race to meet the energy and workforce needs of a growing digital economy, recent events in Lycoming and Lackawanna counties highlighted.
With the latest electricity demand projections for data centers increasing by 100-200% over the next three years, proximity to a reliable and cost-effective energy supply becomes essential for hyperscale data center developers, power producers, and advanced manufacturing systems. Natural gas from Pennsylvania’s vast shale resources offers the reliability and consistency that AI-centered operations require to operate around the clock.
That reality was front and center during a recent PA Senate Majority Policy Committee hearing, where Marcellus Shale Coalition’s Patrick Henderson outlined how natural gas from Pennsylvania can meet this unprecedented growth – so long as a competitive policy and regulatory environment exists.
Here are the facts: Pennsylvania is America’s top electricity provider, and natural gas fuels over 60% of the Commonwealth’s power – but that only comes from 14% of the state’s annual production. This unrealized potential makes Pennsylvania an ideal location for developers to choose our state to build electricity-driven data centers.
“While we have seen some recent positive announcements related to power generation and data centers, to fully maximize these opportunities we need to remove the threat of punitive power generation taxes, streamline permitting processes, have state agencies stand behind and defend their permit decisions and address the endless litigation cycle that seeks to simply run out the clock on project developers,” said Henderson during his testimony.
In Williamsport, industry leaders recently came together with the MSC, Pennsylvania College of Technology and the Williamsport-Lycoming Chamber of Commerce to host a luncheon focused on the intersection of AI, energy and economic opportunity in northeast PA. More than 100 leaders in business, education, labor and economic development gathered to explore how the region can attract and sustain investment in data centers and related AI infrastructure.
“The new economy will be driven by artificial intelligence and Pennsylvania’s natural gas industry stands ready to help ensure America wins the global AI race,” said MSC President Jim Welty. “There’s no more readily available, cleaner and more American resource than natural gas, and it’s natural gas that’s going to be at the forefront of the AI revolution.”
Welty also announced the launch of the MSC’s Power Generation, AI and Data Center Committee. This new committee will provide a platform for MSC members to collaborate on emerging opportunities tied to AI and data centers while addressing challenges related to grid reliability, permitting, and infrastructure investment.
The bottom line is clear: Pennsylvania natural gas must be at the center of this digital revolution, and our industry can deliver on the demand for more energy, while keeping prices affordable for Pennsylvania consumers. By aligning energy development, education and public policy, the Commonwealth can turn historic levels of private investment into long-term growth, reliable and affordable power and good-paying jobs. We have a generational opportunity to reshape the future, and Pennsylvania can lead the way.
