Could PA Embrace Its Potential as America’s AI Capital?

Pennsylvania could be the national leader in artificial intelligence and data centers. Over the years, we missed our opportunity with coal, oil, and so far, natural gas (even though the state has more in this capacity than Saudi Arabia). Despite this energy, plus much more, US News rates Pennsylvania as only the 38th “best economy” and 40th for “best states overall.”

Every piece of the puzzle is in our grasp: energy, technology, universities, geography.

In July, U.S. Sen. Dave McCormick brought President Trump, several of his cabinet members, along with leaders in technology, energy, finance, education and the building trades to Pittsburgh for a “Pennsylvania Energy and Innovation” summit. The goal: unleash greater Pittsburgh’s potential as a national AI hub, with Pennsylvania leading the nation. This month, I again joined leaders who came back to Pittsburgh to discuss next steps.

After McCormick’s July summit, $93 billion in investments were pledged. It’s an impressive start, but only the tip of an economic pyramid that could be built if there’s a thoughtful plan to capitalize on our assets, look to the future, and dare to be bold and become a top 5 economy.

I’m hopeful though skeptical. I’ve seen this show before.

I’ve lived in Pennsylvania my whole life and have been involved in public policy and government for decades. Every time Charlie Brown (i.e., “opportunity”) runs to kick the ball, Lucy (i.e., “Harrisburg politicians”) pulls the ball away – or loses interest due to short-sighted or even punitive regulations against new economies. Unlike Texas, North Carolina, Tennessee, Florida, and even “friggin Ohio” – as Gov. Shapiro lamentably calls our natural gas neighbor – Pennsylvania does not create plans with bipartisan, business, and education leaders.

Pennsylvania was once the center of national government and thought leadership. It became the keystone state with rail and waterways for trade. It was the leader in timber and the birthplace of oil. It fueled industrial growth with coal and is now leading in gas. Three times, providence has given us the chance to use energy to grow not only an energy industry, but also manufacturing, science, chemicals, and innovative technologies.

Yet, despite being the “keystone state” with land, air, and water access to trade with most of America, Canada, South America, and Europe; despite having more than 350 colleges and trade schools – including Carnegie Mellon, Drexel, Penn, Pitt, and Penn State; despite having the fifth-largest population; and despite being many times over blessed with natural resources … Pennsylvania’s population is stagnant. Due to misguided policies, we export college graduates and our children.

Is there hope?

To be a national AI leader, a region needs energy to produce and create access twice as much as they have today. Moreover, it needs an established technology base and a pipeline of technology innovators; universities to supply employees; building trades to construct the massive, insulated buildings that are more like a corporate center in one building; land to build on; and zoning laws that will both protect local communities yet not strangle innovation. Pennsylvania also needs the ability to recruit investors.

Greater Pittsburgh – and Pennsylvania – has it all.

There could be multiple 12-figure investments, tens of thousands of jobs in construction and support industries, and in operation of the facilities. The growth of the AI industry would be a call to investment and innovation in related fields and spin-offs. Our children and grandchildren would work in industries that do not yet exist today.

But this involves planning, coordination, and a commitment to get it done for energy, permitting, zoning, water, and job training.

Why am I skeptical? I saw this potential before with natural gas. It also needed support, coordination, and leadership. But too many wanted to either punish them with taxes, over-regulate them, or do everything they could to keep the gas in the ground.

Together, activists, short-sighted politicians and NIMBYism created a narrative that we’re still recovering from: “All the workers are from Texas; companies aren’t paying their ‘fair share’; and they’re going to use our water and pollute our land.” That misguided mantra kept us from national leadership and reaching full potential.

I hear similar fears today with AI: “They’re going to use-up our energy – and that will raise our utility bills. AI makes people lose their jobs. And we don’t want these enormous buildings in our community.”

Here are the realities. Many of the major AI facilities want to construct their own power source on site – be it mini-nuclear, hydro-power in locations near rivers, or using natural gas. In fact, many could produce “extra” power that, in turn, could help lower our bills. AI jobs are going to happen. If Pennsylvania takes leadership, we can shape the jobs created and who might be able to transition to other roles. If Ohio, Texas, or data-center focused Virginia (using Pennsylvania gas) drive the new economy, we will be forced to react, without construction jobs or jobs in a new economy. Lastly, we must find a way to balance local input without letting it become NIMBYism on steroids.

We need leadership now. There needs to be a Texas-style bipartisan, multi-participant plan – a “Manhattan Project” for AI in Pennsylvania. McCormick can provide invaluable help with leadership, federal resources, and regulations, but ultimately, he needs partners in Pittsburgh, Philadelphia, and Harrisburg.

We have every asset. We have a head start on at least 45 states – maybe more. Yet, I’ve seen this movie before.

I’m hopeful, but skeptical. Hopefully, I’m proven wrong.