2 PA Towns Show How to Move Forward with Data Center Projects
We are encouraged by recent developments in two Pennsylvania townships, one in northeast PA, the other in southwest PA, with respect to moving forward with data center projects. We get it. People are up in arms, some feeling as though data centers are being “forced” on them by less-than-transparent builders. Noise. Lights. Water usage. All are concerns. However, as we’ve stated many times, reasonable people can work together, sort through the issues, and move these projects along. That’s what we’re seeing in Olyphant, PA, a suburb of Scranton in Lackawanna County, and in South Strabane Township in Washington County. Read More “2 PA Towns Show How to Move Forward with Data Center Projects”
Google has partnered with Voltus to fund a three-year, 100-megawatt (MW) so-called “virtual power plant” in the PJM Interconnection (roughly the Marcellus/Utica region). VPPs are designed to address soaring data center demand. Voltus will “aggregate” distributed energy resources from residential, commercial, and industrial customers. We call foul. So-called VPPs are fake—they don’t actually exist. They simply use existing grid electricity taken from other sources. Creating a VPP just takes a little software and a lot of apathy from citizens to make it work. Google will, in essence, pay other electricity consumers to shift or forgo energy use. Google says it’s faster and more cost-effective to buy electricity from other electricity users rather than build an actual, honest-to-God power plant. 
AI (artificial intelligence) data centers are vital to both the natural gas industry and the national security of the United States. Yet, many Americans (a majority?) have turned against data centers. Sure, sometimes the builders of these facilities have shot themselves in the foot by not being more transparent and attempting to build facilities too close to population centers. Our thesis is that reasonable people can compromise, address issues, and move forward with data centers. But that’s not happening. Why? 
Although there are legitimate concerns over data centers locating in populated communities (noise, water use, etc.), make no mistake: The anti-data center movement is nothing more than the anti-fracking movement in new clothes (see 
Homer City Generation announced the early completion of demolition and excavation work at its Indiana County, Pennsylvania, site, marking a major milestone in transforming the former coal-fired power plant into a gas-fired power plant and AI data center complex. Over nine months, partner Independence Excavating led 130 union workers and 65+ pieces of equipment to recycle over 112,000 tons of scrap material and excavate approximately 3 million cubic yards (comparable to the Great Pyramid’s volume), all while maintaining zero safety incidents. 
Data center developers are turning to behind-the-meter natural gas generation as grid interconnection delays now exceed five years, making traditional utility connections commercially unworkable for AI-scale (hyperscale) facilities. Natural gas turbines and engines provide continuous, dispatchable baseload power that unreliable renewables cannot deliver at the required scale and reliability. However, this shift transforms data centers from energy consumers to energy producers, requiring sophisticated gas supply strategies including managing basis risk, securing firm pipeline transport capacity, evaluating supply reliability during site selection, and structuring contracts that accommodate volume growth. 
Pennsylvania Republican gubernatorial candidate Stacy Garrity (currently the State Treasurer) yesterday called for a “total pause” on Pennsylvania A.I. data center development, arguing communities need time to update zoning, protect neighborhoods and farmland, strengthen noise rules, and secure transparency on water, energy, health, infrastructure, taxpayer, and ratepayer impacts. While we have expressed similar sentiment that common-sense guidelines are needed for data centers regarding water, noise, and energy use, we strongly disagree with a total statewide (and indefinite) “pause” on new projects. It sends the exact WRONG signal to the tech industry — that both Republicans and Democrats in the state are now blocking data centers in the Keystone State. Pausing or blocking data centers jeopardizes $92 billion worth of private investment in the state. 
Ohio Governor Mike DeWine announced on May 27, 2026, that he has directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests. The pause comes while the Ohio General Assembly’s Joint Data Center Committee “studies” the growth of data centers in the state. DeWine noted that data centers previously granted sales and use tax benefits reported a total capital investment of $27.2 billion in 2025. The Tax Credit Authority will stop accepting new exemption proposals after a meeting next Monday, where it will consider one final proposal. DeWine said the move is a suspension of new exemptions, NOT a data center ban. 
The oil and gas industry not only benefits from the AI (data center) sector by supplying natural gas to power plants, it also benefits by *using* AI in its operations. Like just about every other business on the planet, O&G companies are now using (embedding) AI into their business. Here’s a startling statistic: In 2025, O&G companies worldwide spent a cumulative estimated $25 billion on AI, according to Rystad Energy. By 2035, that number will be an estimated $50 billion per year. Amazing! Are you looking for a hot hot hot job? Look at AI in O&G. 
Pennsylvania Governor Josh Shapiro introduced new “Responsible Infrastructure Development (GRID) Standards” for data center developers yesterday. These standards aim to tie tax breaks to sustainability and transparency, addressing concerns about energy affordability, pollution, noise, and overall quality of life. Under Shapiro’s GRID plan, data center developers seeking tax exemptions would need to demonstrate that they meet requirements to protect energy affordability, promote transparency and community engagement, support workforce development, and safeguard the environment. Projects would also be required to incorporate so-called clean energy sources and adhere to strict efficiency and environmental protection measures. 
Sen. Jarrett Coleman (R-Bucks/Lehigh) and Rep. Jamie Walsh (R-Luzerne) have introduced legislation in Pennsylvania to address the rapid expansion of data centers. Their proposed bills aim to repeal a 2021 tax exemption that incentivizes data centers to locate in the state. The bills would also empower municipalities to implement an 18-month moratorium on data center development applications. With all due respect, these two Republicans have lost their way and are out of their minds. 
The Warren, OH, City Council introduced legislation to impose a permanent ban on new data centers, citing concerns about water supply, wastewater infrastructure, utility costs, and the city’s residential character. Sponsored by Democrats, the proposed ordinance argues that data centers place unsustainable demands on city systems, particularly following a costly wastewater plant upgrade. One Council Democrat drew parallels between data centers and past fracking “disappointments” in the region, emphasizing water as the community’s most critical resource.