PITTSBURGH – Pennsylvania is poised to become a major hub for data center development, fueled by a unique combination of robust manufacturing, a modernizing energy grid, and growing demand for cloud computing and artificial intelligence. A recent report, “Pennsylvania Builds the Cloud: Manufacturing, Energy, and Data Center Development,” commissioned by the Pittsburgh Technology Council and the Philadelphia Alliance for Capital and Technologies and conducted by Mangum Economics, details the significant economic opportunities ahead for the Commonwealth. The study highlights a projected surge in data center capacity and the substantial job creation and economic output it will generate.
The report underscores a critical intersection of two major trends: the exponential growth of data centers – essential infrastructure for the digital economy – and the ongoing modernization of the American power grid. Pennsylvania, according to the findings, is uniquely positioned to capitalize on both. The state’s existing manufacturing base, particularly its strength in producing components for data centers, gives it a distinct advantage. This isn’t just about building new facilities; it’s about Pennsylvania becoming a key supplier to data center hubs across the region.
Randy Vulakovich, senior principal and chair of the state government relations practice group at Buchanan Ingersoll & Rooney, which sponsored the research, emphasized the significance of the findings. “We saw early on that Pennsylvania will be at the center of opportunities related to data centers and AI infrastructure, and this report confirms that it is a huge economic development and growth opportunity across the commonwealth,” Vulakovich said. Buchanan’s expertise, he added, spans the entire lifecycle of data center projects, from site selection and construction to navigating complex regulatory landscapes.
Manufacturing Powerhouse: Pennsylvania’s Role in the Data Center Supply Chain
The report reveals that Pennsylvania already leads all states within the PJM Interconnection region – which coordinates the flow of electricity in all or parts of 13 states and the District of Columbia – in manufacturing and raw-material exports to data center hubs. In 2024, these exports totaled nearly $14.6 billion. This existing industrial strength isn’t just a historical advantage; it’s a foundation for future growth. The study projects that these exports will support more than 1,900 jobs today and drive over 4,500 additional jobs, generating $1.5 billion in new annual output by 2036.
This manufacturing output isn’t limited to a single sector. It encompasses a wide range of products, from specialized cooling systems and power distribution units to the structural components that form the physical buildings themselves. Pennsylvania’s diverse manufacturing base allows it to serve as a comprehensive supplier to the rapidly expanding data center industry. The report specifically points to the state’s ability to provide the essential materials and components needed for the construction and operation of these facilities.
Exponential Growth: Data Center Capacity and Job Creation
The projected growth in data center capacity within Pennsylvania is nothing short of remarkable. The study forecasts an expansion from 182 megawatts (MW) in 2026 to over 7,196 MW by 2036 – a more than 4,000% increase. This growth rate significantly outpaces every other state within the PJM region, solidifying Pennsylvania’s position as a leading data center market. This expansion will require a substantial workforce. The decade-long buildout is expected to sustain more than 8,500 skilled construction jobs statewide. Beyond construction, Pennsylvania-based data centers are projected to directly create nearly 8,300 permanent operations jobs by 2036.
The economic impact extends far beyond the data center walls. In-state data center activity is anticipated to generate approximately $12 billion in new annual economic output and support nearly 19,400 additional jobs by 2036, spanning manufacturing, energy, services, and the broader economy. This ripple effect demonstrates the far-reaching benefits of investing in data center infrastructure.
The Energy Factor: Powering the Cloud
Reliable and affordable power is paramount for data center operations, and Pennsylvania’s energy landscape is a key differentiator. The report highlights the state’s access to diverse energy sources, including natural gas, nuclear, and increasingly, renewable energy. Continued investment in grid modernization is also crucial. A modern, resilient grid ensures a stable and dependable power supply, essential for the uninterrupted operation of data centers. The combination of low-cost power, grid modernization efforts, and a strong manufacturing base positions Pennsylvania as an ideal location for data center development and a critical link in the supply chain powering AI and cloud growth across the PJM region.
The full executive summary of the report is available for review here.
Buchanan Ingersoll & Rooney is actively assisting clients in navigating the legal and regulatory complexities associated with data center development. The firm’s expertise encompasses real estate, construction, energy regulation, policy, technology, and more, offering comprehensive support throughout the entire project lifecycle. They aim to provide strategic solutions that enable clients to capitalize on the opportunities presented by this rapidly evolving industry.
As Pennsylvania prepares for this wave of data center investment, continued collaboration between the public and private sectors will be essential. Further investments in grid modernization, workforce development, and streamlined permitting processes will be critical to maximizing the economic benefits and ensuring the state remains a leader in the cloud computing era. The next key step will be the ongoing implementation of grid modernization projects across the state, as outlined by the Pennsylvania Public Utility Commission, with updates expected in the fall of 2026.
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