(For an enhanced PMA Bulletin viewing experience, click HERE!) By Carl A. Marrara and Brian Kennedy More than a century ago, George Westinghouse built what became known as an “Empire of Lights” across Western Pennsylvania. He did not just produce electricity. He built the infrastructure, factories, and industrial backbone that powered a nation. Today, leveraging that Westinghouse empire, Pennsylvania is once again building the physical systems that underpin the global economy, this time for AI, cloud computing, and the massive data centers they require. The "cloud" is not abstract. It does not float, and it certainly is not weightless. Every AI interaction, every streamed movie, and every saved document is sustained by a very physical network of steel, concrete, fiber, transformers, and cooling systems. Increasingly, the place where that digital world meets physical reality is Pennsylvania. Our Manufacturing Edge At the recent PA Data Center and Energy Innovation Summit, the Pittsburgh Technology Council and its partners released new research that highlighted a generational economic opportunity. This is not because Pennsylvania is trying to reinvent itself. It is because, for once, the future economy is aligning almost perfectly with what Pennsylvania already does well. While other states focus on attracting the data centers themselves, Pennsylvania is already manufacturing the component parts they need to function. In 2024, the Commonwealth exported more than $29 billion in data center related goods and services across the PJM region. Even before our own data center build out fully materializes, we are deeply embedded in the supply chain. These exports support thousands of Pennsylvania jobs today and are projected to generate an additional 4,500 jobs and $1.5 billion in annual output by 2036. Investment Follows Infrastructure The shift is already visible in our local communities. Major announcements are stacking up for new manufacturing facilities and expanded energy infrastructure: - Mitsubishi Electric Power: A $86 million switchgear factory in Beaver County.
- EOS Energy: A $353 million battery factory in Warrendale and HQ in Pittsburgh.
- GE Vernova: A $100 million investment in its Charleroi factory in Washington County.
- Westinghouse Electric: An $80 billion nuclear reactor agreement. Butler County-based HQ.
- Hitachi Energy: A $70 million factory expansion project in Westmoreland County.
- COHERENT: A $2 billion agreement with NVIDIA. Coherent HQ is in Armstrong County.
- Beaver Valley Nuclear Plant: A 20 percent expanded output to power Meta operations.
These are not just headline numbers. They represent family sustaining jobs in the trades and advanced manufacturing. Regardless of where a data center is eventually built, Pennsylvania wins by making the hardware that makes AI possible. The Power Advantage As one summit speaker put it: data centers are electricity problems disguised as real estate projects. Pennsylvania happens to excel at power. We are the largest exporter of electricity in the United States, sending out more than 85 million megawatt hours annually. With over 90 percent of our generation coming from natural gas and nuclear, we offer the reliability and price certainty that data centers require. Some pundits warn of a power Armageddon as more data centers come online, predicting skyrocketing electricity prices. But the reality shows otherwise. Pennsylvania has 182 MW of data center capacity, compared to Virginia’s nearly 14,000 MW. By all arguments, Virginia should have the most expensive commercial and residential rates in the PJM region, but it does not. Virginia has the lowest rates (25 percent lower than Pennsylvania’s). When you buy enough of something, efficiency creates lower unit pricing. Pennsylvania is well positioned to benefit the same way. Three Industries, One Keystone Most states specialize in one facet of this industry. Some host servers in data centers; others produce energy, while some manufacture key components for the grid and the industry. Pennsylvania is the only state positioned to do all three: host, power, and supply the manufactured components. Over the next decade, our data center capacity is expected to surge past 7,000 MW, a 4,000 percent growth rate. This build out alone will sustain more than 8,500 skilled construction jobs for over a decade. By 2036, the sector is expected to support nearly 19,400 total jobs across the Commonwealth, generating $12 billion in annual economic output. A Self-Reinforcing Cycle Data centers increase demand for power; power generation drives investment in the grid; and manufacturing supplies both. Each cog reinforces the others. Capturing this moment depends on the decisions we make now regarding permitting, workforce development, and energy policy. For years, the "future economy" was discussed in terms of software and digital transformation. It is now clear that the next phase is inherently physical. The "cloud" depends on power plants, transmission lines, and skilled labor. From the Empire of Lights established by Westinghouse to the factories of today, Pennsylvania is not just chasing the future. We are building the backbone of it. This is a Pennsylvania moment. ________________ Carl A. Marrara is the Executive Director of the Pennsylvania Manufacturers’ Association (PMA). Brian Kennedy is the Senior Vice President of Operations and Government Affairs for the Pittsburgh Technology Council. | 