Lawmakers divided as Amazon's $20 billion plan presents major pros and cons: 'Faster isn't better'

The announcement that Amazon intends to pour $20 billion into developing data centers across Pennsylvania, including a 1 million-square-foot facility in Bucks County, left state lawmakers, environmental advocates, and local communities with questions about managing data center growth.

As WHYY News reported in September, this proposed investment and other data center projects promise jobs, tax revenues, and digital infrastructure — but critics warn it could present serious consequences for electricity consumers, water systems, and the local environment. As Pennsylvania confronts decisions about handling these projects, its experience raises broader questions about how to balance tech industry ambitions with community welfare.

What's happening?

​​In June, Pennsylvania's governor, Josh Shapiro, publicly backed Amazon's plan to build large-scale data centers in Pennsylvania, including initial sites in Falls Township and Salem Township in Luzerne County, pledging that the projects would bring roughly 1,250 permanent jobs.

"Pennsylvania is back on the field, and Pennsylvania is winning again," Gov. Shapiro said in June, according to WHYY News. "Our schools and our police departments, our local communities, will benefit from the millions of dollars in new tax revenue that will be brought in from this investment."

Local governments, however, are concerned about proposals to reduce their control over zoning and permitting. Some state bills aim to shift land-use authority from municipalities to a centralized energy board to fast-track permitting for data centers, according to the news outlet.

Why is managing data center growth important?

At face value, Amazon's $20 billion investment appears to be a win for Pennsylvania, increasing employment, government revenues, and infrastructure. And, while Amazon has made good on some of its past promises, projects like this come with costs that can quickly erode the benefits, especially for smaller communities.

Data centers need a lot of energy, and some build their own supply, but many rely heavily on the state's electric grid, as WHYY News detailed. The U.S. Department of Energy has reported that data center energy consumption tripled from 2014 to 2023, and it is expected to double, or even triple, again by 2028. Without proper management, this raises the possibility of higher electricity bills for residential customers and increased strain on local power grids due to the centers operating around the clock.

Beyond energy, these facilities also demand substantial volumes of water for cooling, posing risks to water supplies, particularly in regions with fragile water systems.

The financial risks extend further. If Amazon and other operators aren't required to shoulder the full cost of new infrastructure and environmental safeguards, the burden could fall directly onto taxpayers and energy consumers.

Safety has also become a large concern amid deaths of data center workers, such as those in an Ohio community.

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What's being done about managing data center growth?

State and local lawmakers in Pennsylvania are actively examining how to regulate and manage the implementation of data centers. In a recent hearing, legislators, environmental groups, municipal representatives, and others testified on what's important to their communities — and concerns about fast-tracking data center projects.

"Faster isn't better if rights are trampled," said Holly Fishel with the Pennsylvania State Association of Township Supervisors, according to WHYY News. Fishel highlighted water usage as a top concern. "Townships must ensure that the developer has documented an adequate water supply that will not leave residents unable to use their homes and businesses if water supplies go dry."

One proposal under discussion: requiring data centers to pay their fair share of grid infrastructure costs and to receive credits for systemic benefits they actually provide. Another is to mandate best practices for water use, cooling efficiency, and noise mitigation.

Still, some say more is needed. Managed well, there are significant upsides to data centers. Yet, if the state isn't careful, the projects could leave everyday Pennsylvanians paying the price for Amazon's growth.

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