Data center developers tout economic benefits. How much could they affect Lehigh Valley economy?
Data center developers and supporters in Pennsylvania's Lehigh Valley highlight the economic benefits and job creation from data center projects, including significant construction and indirect employment, despite requiring fewer permanent staff. Local economic development officials view data centers as foundational infrastructure rather than high-value job creators, leading to less dedicated recruitment. Residents, mindful of past warehouse developments, are actively pushing back against five proposed hyperscale projects, while utilities like PPL and First Energy are investing billions to expand grid capacity to meet growing power demands.
In Pennsylvania's Lehigh Valley, data center developers are actively countering public opposition by emphasizing the economic advantages of their projects. While data centers create fewer permanent jobs once operational compared to other industries, proponents like Dan Diorio from the Data Center Coalition point to significant construction employment, which can last a decade or more, and a substantial number of indirect jobs. Utilities such as PPL Corp. and First Energy are responding to this growth by committing billions to expand and modernize the power grid, with PPL alone planning $6.8 billion in investments through 2028 and identifying 31.8 gigawatts in advanced-stage data center pipeline demand.
However, the Lehigh Valley Economic Development Corp. (LVEDC) views data centers primarily as essential infrastructure, similar to power plants, rather than high-value developments that generate numerous direct jobs. Consequently, the LVEDC does not prioritize recruiting data center projects over other industries like manufacturing that promise more substantial employment. The region is currently reviewing five hyperscale data center projects that have faced resident pushback, with a sixth project in Upper Macungie recently abandoned.
The debate extends to state-level politics, with U.S. Sen. Dave McCormick and Gov. Josh Shapiro advocating for Pennsylvania as a tech hub, citing its natural gas reserves as an energy advantage for data centers. Lehigh University economics professor Alberto Lamadrid suggests that while direct job creation is modest, data centers can boost local industry efficiency and overall productivity through AI advancements. He also advises proactive municipal regulation and smart tariff structures to manage growth, drawing parallels to the state's past experience with the Marcellus Shale boom, rather than implementing outright bans like New York's data center moratorium.