Pennsylvania’s natural gas is key to efficiently meeting the digital economy’s energy demands and is a primary reason Governor Josh Shapiro believes “we’re going to win the battle of AI supremacy, and it’s going to be done right here in the Commonwealth of Pennsylvania.”
Data centers are rapidly expanding across the country to power cloud computing and artificial intelligence (AI). They already consume about 4.4% of all U.S. electricity, and demand is projected to rise by as much as 200% in just the next three years. Nearly half of U.S. utilities report power requests from data centers that exceed their current generation capacity, making access to abundant, dependable energy more critical than ever.
“Pennsylvania by itself has become one of the largest energy producers in the country. That’s truly remarkable. U.S. shale gas is foundational to this Administration’s priorities to unlock American growth,” said Secretary Doug Burgum at this year’s SHALE INSIGHT® Conference while discussing how co-locating data centers with natural gas power provides a fast and efficient way to deliver reliable electricity for the AI-driven economy.
Natural gas provides the reliable, around-the-clock power that data centers require, making the Commonwealth an ideal location for developers. Coupled with a skilled workforce and strong infrastructure, the state is uniquely positioned to meet the growing energy demands of AI and data centers.
“Right now I have the people to build the data centers. I have the training programs and I have the skilled workers. And these bring a ton of jobs to these communities,” said Rob Bair, president of the Pennsylvania Building and Construction Trades Council, at a recent Pennsylvania House Energy Committee hearing on legislation to support data center growth
A Competitive Advantage
To maintain Pennsylvania’s momentum in attracting data centers, state policymakers must create a competitive environment that incentivizes new natural gas power generation and the development of downstream applications.
“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 MSC’s Patrick Henderson during his testimony before the Pennsylvania Senate Majority Policy Committee.
Pennsylvania’s abundant and reliable natural gas, which fuels more than 60% of the state’s electricity yet comes from just 14% of annual production, provides the foundation to power AI, advanced manufacturing, and other energy-intensive industries critical to the digital economy. By aligning energy policy with investment incentives and workforce development, Pennsylvania can deliver affordable, reliable power, attract new economic activity, and strengthen its leadership in the global AI race.
“Our abundant resources have positioned the commonwealth to emerge as a digital powerhouse. Data centers require round-the-clock power, and natural gas provides the reliability and flexibility that other intermittent energy sources like wind and solar can’t match,” wrote Jim Welty, president of MSC, in a recent letter to the editor.
Beyond its reliability and economic advantages, natural gas supports cleaner air while providing the consistent, flexible power that AI-driven data centers require. This combination of environmental and operational benefits positions natural gas as a central component of Pennsylvania’s strategy to lead in the digital economy.
Governor Josh Shapiro has emphasized natural gas as a critical part of Pennsylvania’s energy mix for powering the state’s growing data center sector. “We think the ability to convert old coal-fired power plants utilizing natural gas, like in Homer City, creates opportunity for new energy to come online … and it’s something that I think is environmentally sustainable,” Shapiro said at the 2025 AI Horizons Summit. He added that using natural gas to power data centers ensures the Commonwealth can meet growing digital economy demands while maintaining environmental protections.
For generations, Pennsylvania has been at the forefront of energy production, and by leveraging clean, reliable resources like natural gas, the Commonwealth is well positioned to power the next era of growth in the digital economy.
“We have long been a cornerstone of American industrial progress… our energy landscape has seen a dramatic transformation with the rise of natural gas, particularly from Marcellus Shale, reshaping our energy mix and positioning us as the top exporter of electricity, the second-largest natural gas producer, and the third-largest energy producer in the country,” said Amy Brinton of the Pennsylvania Chamber of Business and Industry at the Pennsylvania House Energy Committee hearing.
To secure Pennsylvania’s leadership in the AI-driven digital economy, the Commonwealth must build on its natural gas advantages, modernize permitting, and enact policies that encourage investment. Natural gas provides the reliable, flexible, and environmentally sustainable power that data centers require while supporting affordable electricity and economic growth. With its abundant resources and skilled workforce, Pennsylvania is well positioned to power the next generation of AI infrastructure and lead the nation in this critical technological race.
