Will Pennsylvania Become the AI State?
This month, titans of the energy, financial, and artificial intelligence (AI) industries gathered in Pittsburgh to attend the inaugural Pennsylvania Energy and Innovation Summit hosted by Pennsylvania’s U.S. Sen. Dave McCormick at the campus of Carnegie Mellon University (CMU) – one of the “birth places” of AI. In attendance was U.S. Secretary of Treasury Scott Bessent, Pennsylvania Gov.Josh Shapiro, and President Donald J. Trump.
The purpose of the summit, as described by U.S. Sen. McCormick himself, is to “bring together top leaders in government, energy, labor, AI technologies, and more to ensure Pennsylvania plays a key role in America’s new era of energy dominance.” During the summit, President Trump announced that $92 billion will be invested in the Commonwealth for AI research, development, and application as well as investments into Pennsylvanian energy sources to sustain the new AI infrastructure. The investments come from 20 private sector AI, financial, and energy businesses, including: Blackrock, Blackstone Group, Exxon, Google, Amazon (who invested $20 billion), and others, as well as state and federal government resources. In short, these giant corporations intend to create AI data centers and expand upon or construct new power generation plants.
One of these new AI data centers will be converting an old steel mill located in Aliquippa in Beaver County, which was once a bustling hub in the steel industry. The steel mill, which is 89 acres, will be transformed into a massive data processing center. Some of the other proposed or forthcoming AI data center locations include Lancaster, Luzerne, and Bucks counties, among others.
What does an AI data center encompass? In any given data center, you will expect to find tons of computers, high-capacity servers, high-capacity storge systems, sophisticated cooling and ventilation systems, robust security systems for both physical and cyber security, and much more. AI data centers are used for a variety of functions, including training, development, implementation, and management of AI models. These data centers are essentially the nervous systems for AI. Because of these components, AI data centers require a tremendous amount of energy to operate.
According to the Department of Energy, the load growth of data centers has tripled since 2014 and will triple once again in 2028. In 2023, data centers consumed roughly 4.4% of U.S. electricity and are expected to consume up to 12% by 2028. The current energy consumption equates to 176 Terawatt-hours (TWh). In simpler terms, one large data center consumes the same amount of energy as 400,000 electric cars. Research has estimated that asking an AI a question consumes 10 times more energy than using a search engine like Google. Because of this tremendous strain on the power grid, Pennsylvania will need to tap into its full energy potential to meet the energy needs of these new data centers. If we don’t ramp up energy production, consumers could witness a steep increase in the price of energy bills due to the significant demand for energy that this new AI infrastructure will create.
To combat energy demand, investors are looking to expand upon Pennsylvania’s energy infrastructure. Google, for instance, is investing in hydropower and has announced that it will expand nuclear energy capabilities. Blackstone and PPL Corp. announced that they will expand or build additional natural gas plants.
AI and the energy sector have a symbiotic relationship. Vast amounts of energy are required to fuel the AI industry, and in turn, AI can be implemented to optimize energy usage, ensuring efficiency. AI can optimize energy usage by forecasting future usage by analyzing historical data and making educated predictions on when to ramp up or slow down energy production. Utilizing advanced sensors, AI can predict when components will require maintenance ahead of schedule – minimizing system downtime. There are wide-ranging tools at AI’s disposal to enhance the power grid.
With the newly required AI and energy infrastructure comes an abundance of new, permanent careers. McCormick stated that the new investments will generate “tens of thousands of jobs.” However, there is always the fear that AI can render certain career fields obsolete, thus potentially leaving many without jobs. While this fear is certainly a possibility, the extent to which job fields will be affected is yet to be seen.
One thing is certain: Pennsylvania has been suffering from an emigration problem predominantly due to a lack of jobs. A large portion of the lack of jobs can be attributed to the adverse effects of the “Rust Belt,” as Pennsylvania was once known as a staple in the steel, and energy (coal) industries. Many Pennsylvanian youths seek employment opportunities in other states due to this lack of career potential. For example, a December 2023 survey conducted by the Commonwealth Foundation discovered that up to 52% of Pennsylvanians under the age of 30, or someone they know, has contemplated leaving the state due to certain circumstances including a lack of job opportunities. This investment into AI will create an untold amount of permanent job opportunities throughout the Commonwealth. These opportunities will serve as a great retention tool for Pennsylvanian youth, members of Pennsylvania’s labor force, and might even entice employment hopefuls from other states to migrate to the Commonwealth.
