Electricity demand is surging and the U.S. grid is under increasing pressure to deliver reliable, affordable power to support the digital economy, a new study by the National Electrical Manufacturers Association (NEMA) warns. With U.S. demand expected to grow 2% annually and soar 50% by 2050 – driven largely by a 300% increase in data center electricity use – the need for forward-thinking energy infrastructure solutions has never been greater.

Cue Pennsylvania.

America’s second-largest producer of natural gas and the top electricity exporter, the Commonwealth is uniquely positioned to meet this moment. Pennsylvania’s energy abundance, infrastructure and location near major population and tech hubs give it a significant competitive edge, and one that investors, tech and energy developers are already tapping into.

Surging Interest in the Keystone State

Electric utilities across the country are feeling the pressure. Nearly 50% of U.S. utilities are receiving power requests from data center operators that exceed their current generation capacity, according to a Reuters survey. In Pennsylvania, several utilities are facing significant new data center requests that exceed their current capacity. The PA Public Utility Commission recently announced efforts to gather information to better understand – and plan for – this expansion of data center demand across the state.

What’s setting Pennsylvania apart is its ability to meet these growing needs close to the source. Pennsylvania offers data centers immediate access to in-state natural gas production, which reduces logistical barriers, transportation costs, and increases reliability – an irresistible trifecta for developers. News in recent weeks shows Pennsylvania’s natural gas advantages are translating into real-world projects across the state, such as:

Northeastern Pennsylvania

“Our region is hot right now…We have the land, the water and, most importantly, we have the power.” – John Augustine, president & CEO, Penn’s Northeast

  • Hazelton, Luzerne County: NorthPoint Development is looking to build a 15-building data center campus in Hazel Township, bringing nearly 900 jobs.
  • Berwick, Columbia County: Amazon Web Services (AWS) is developing a hyperscale data center that will require industry-leading infrastructure and technology, underscoring an investment in Pennsylvania’s economy as a whole.
  • Archbald, Lackawanna County: “Project Gravity” developers applied for nearly 1 million square feet of data centers, and a separate developer proposed a $2.1 billion artificial intelligence data center campus on nearly 400 mountainside acres in the Borough.

Southwestern Pennsylvania

“With vast Marcellus inventory, Range is well-positioned to meet the environmental and reliability standards and decades-long supply requirements of a data center client.” – Alan Engberg, Range Resource’s Vice President for Marketing & Midstream

  • Homer City, Indiana County: North America’s largest natural gas power plant will be built on the former Homer City power plant grounds and turned into a data center campus. According to project developers, The site has the ability to draw about 1 gigawatt of power from the grid in the near term, with more power becoming available for data centers and the grid as the plant is built.
  • Robinson Township, Washington County: MSC members Range Resources and Liberty Energy announced the development of a natural gas generation facility to meet the data center sector and other high-energy use facilities. The companies see the project as serving as a catalyst for attracting high-energy users who are seeking long-term energy agreements from natural gas.
  • Upper Burrell, Westmoreland County: The project will transform the shuttered office and industrial site into a state-of-the-art data center campus, with plans for 3 GW of capacity to be deployed over six years. The Upper Burrell facility will feature on-site power generation using natural gas, enabling dual utility and microgrid capabilities. TECfusions is also in discussions to export excess power to support the local grid, further benefiting the community.

“Marcellus Shale is the foundation for this future. Pipelines and new power plants will drive innovation and environmental sustainability,” said Luke Bernstein, president & CEO, Pennsylvania Chamber of Business & Industry.

Policies Key to Unlocking More Growth

Pennsylvania’s rise as a data center hub is no accident. It’s the result of energy abundance, geographic advantage, and industry innovation. But smart policies must follow these competitive advantages in order to fully seize this opportunity. Regulatory certainty, permitting predictability and support for infrastructure modernization will allow Pennsylvania to keep pace with soaring energy demands and attract even more high-tech investment.

As the NEMA report makes clear, meeting America’s energy future requires both innovation and collaboration. With public-private partnerships, forward-thinking energy policy and continued investment in grid resilience, Pennsylvania can lead the way.

The Commonwealth is no longer just a major energy producer – it’s quickly becoming the backbone of the digital economy.