Aug. 16, 2024
SALEM TOWNSHIP - This week, the American Petroleum Institute (API) hosted a roundtable hearing in Luzerne County, welcomed by Rep. Mike Cabell (R-Luzerne), U.S. Congressman Dan Meuser (R-9) and other lawmakers, to discuss how Pennsylvania's abundant natural gas and energy resources can enhance the reliability of the electric grid and attract major companies, like Amazon, to build AI data centers across the state.
The hearing took place in Salem Township, where Amazon Web Services (AWS) is planning to develop 15 data centers as part of a multibillion-dollar project. Talen Energy's nuclear power plant will power this development, positioning the township as a key hub for hyperscale data centers. Additionally, the area holds massive potential for an even larger data center campus, which could be powered by natural gas and positioned behind the grid.
"The potential here is incredible," said Cabell, whose district includes Salem Township. He has been actively collaborating with local officials to advance the Amazon proposal.
The discussion was led by George Stark, Coterra Energy director of external affairs, and included insights from local government, industry and labor leaders.
"Pennsylvania's energy resources are key to bringing data centers to our state," said Stark.
Thomas Copus, a Caithness Energy vice president, highlighted the significant impact of their natural gas-fired plant, which already meets the energy demands of over 900,000 homes while contributing approximately $850,000 annually in taxes to state, county and local governments.
Copus also discussed the potential for further expansion, which could dramatically impact the area if the right policy decisions are made. "Imagine if we added six or eight more plants here to power the data centers that could be developed," Copus suggested.
Stark pressed Copus on whether it is possible to build another 6-8 gas-powered plants in Salem, to which Copus affirmed, "It is entirely possible."
As the role of artificial intelligence expands in daily life, the demand for more power plants is expected to rise. Cynthia Niemeyer of API predicted that 20 additional power plants like Caithness's facility in Luzerne County will be needed soon, specifically for data centers.
"Pennsylvania is uniquely positioned to lead in this space," said Rob Jennings, API vice president of natural gas markets. He emphasized that while Virginia has historically been the epicenter for data centers, companies are now seeking new locations with reliable energy sources. Given the challenges of building nuclear plants and the limitations of hydropower, natural gas remains the most viable option.
Meuser underscored Pennsylvania's strategic advantage, noting that the state sits atop the fourth-largest reserve of natural gas in the world. "We have a significant opportunity to play a pivotal role," Meuser added.
"Pennsylvania is abundant with natural energy resources and is the second-largest producer of natural gas in the country," said Sen. Lynda Culver (R-27), who was represented at the hearing by a staff member. "As the Commonwealth faces a growing requirement for energy, we need to look at what is readily available and be able to meet that need. Expanding current energy capacities will enable the Commonwealth to attract new businesses while sustaining current customers and allowing them to grow without constraint."
The Marcellus Shale, one of the largest natural gas fields in the world, positions Pennsylvania to meet the inevitable and incredible energy demands generated by data centers. As the need for reliable and scalable energy grows, Salem Township, with its abundant natural gas resources, is poised to become a critical hub for powering the future of technology.
The hearing also featured contributions from John Olejnik of the International Brotherhood of Electrical Workers, Rep. Aaron Kaufer (R-Luzerne) and local construction leaders.
To view or download a broadcast-quality video of the hearing,
click here.
GROUP PHOTO: Speakers included, from left, George Stark, Coterra Energy director of external affairs; Thomas Copus, Caithness Energy vice president; Cynthia Niemeyer, API; Rep. Mike Cabell; U.S. Congressman Dan Meuser; John Olejnik, International Brotherhood of Electrical Workers; Stephanie Catarino Wissman, API; and Rob Jennings, API.
Representative Mike Cabell
117th Legislative District
Pennsylvania House of Representatives
Media Contact: Andy Briggs
717-260-6474
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