Gov. Josh Shapiro today recommitted to data center development in Pennsylvania with a multimillion-dollar state funding commitment for industrial projects across the commonwealth.

“We are producing more energy today than ever before,” Shapiro said at a Wednesday press conference in Mayfield, Lackawanna County.

“Any of these deals, you’ve got to work with the local community.”

Gov. Josh Shapiro

Mayfield is home to one of the state’s glut of abandoned coal mines. The land is now set to be redeveloped into a logistics center, announced Shapiro and Department of Community and Economic Development Secretary Rick Siger, flanked by local county officials. 

The project is part of $39 million in new funding across 11 new projects, the first awardees under the administration’s Pennsylvania Strategic Investments to Enhance Sites (SITES) Program. Established in 2024, PA SITES aims to provide up to $400 million in loans and grants for construction that leads to economic development.     

In his remarks, the governor emphasized continued investment in energy production, even as power-intensive data centers become an increasingly controversial topic. 

“We are a net energy exporter,” Shapiro said, citing projects like recommissioning the Three Mile Island nuclear plant, which is expected to help power Microsoft’s AI endeavors. 

Energy use and data center development have been a hot topic in Pennsylvania all year. Leaders tout more construction jobs, though the complexes are known to hire few permanent staffers.

Pennsylvania’s commitment to building data centers has drawn private sector attention, alongside faster permitting processes, centered on expediting industrial development. 

Amazon plans to invest at least $20 billion in cloud computing and AI infrastructure — including data centers — across the commonwealth. At a much-watched “AI and Energy Summit” in July, several Big Tech and energy companies joined to announce a $90 billion pledge for various Pennsylvania data center and energy generation projects.

2025 PA SITES investments

  • Allegheny County: $6 million
    • Phase two development of the former Pressed Steel Car Company McKees Rocks Works Plant
  • Berks County: $250,000
    • Real estate planning on a city-owned 50-acre vacant property
  • Bucks County: $150,000
    • To explore the possibility of developing a new lab and office building on a 2.85-acre lot
  • Crawford County: $8.5 million
    • Demolish a vacant, 120,000-square-foot building
  • Erie County: $121,740
    • Planning development of a 160-acre site in the McKean Business Park
  • Lackawanna County: $6 million
    • Redevelop a 230-acre former coal mine property
  • Lebanon County: $2 million
    • Utility extension and transportation improvements for the Myerstown Light Industrial Site
  • Luzerne County: $8 million
    • Construct the 15-building CrossRoads East Business Park on a former coal mining site
  • Philadelphia: $250,000
    • Site planning analysis of the Lower Schuylkill Innovation Campus
  • Washington County: $7.7 million
    • Phases two and three of the Fort Cherry Development District
  • York County: $457,184
    • Transportation upgrades to support new developments at Penn Township’s Industrial Park

“Any of these deals, you’ve got to work with the local community,” Shapiro said. “It’s critically important that we continue to do that, listen to the local government, incorporate their concerns, and then lean in together.”

Data centers are also known for their massive energy needs, which Shapiro says won’t be a problem for Pennsylvania. 

In September, Shapiro said “environmentally sustainable” sources like nuclear and natural gas would power the plants. (While natural gas is often cited as a cleaner alternative to coal, it is still a fossil fuel that releases greenhouse gases.)

Local communities have rallied against the developments, citing environmental concerns and higher electric bills, after seeing communities across the country struggle with similar challenges.

“I promised you all I’d be an all-of-the-above energy governor,” Shapiro said, “That’s exactly what I’ve delivered on, and through producing more energy, we’ve got more economic opportunity.”