Luzerne Times

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. The event aimed 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 potential for an even larger data center campus that could be powered by natural gas.

“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 potential expansion that could dramatically impact the area if favorable 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; Copus affirmed this possibility: “It is entirely possible.”

As artificial intelligence's role expands in daily life, 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 soon be needed 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 challenges with building nuclear plants and limitations of hydropower, natural gas remains a viable option.

Meuser underscored Pennsylvania’s strategic advantage noting that the state sits atop one of the world's largest reserves of natural gas: “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), represented at the hearing by a staff member. “As the Commonwealth faces growing energy requirements we need to look at what is readily available and meet that need.”

The Marcellus Shale positions Pennsylvania well for meeting future energy demands generated by data centers as reliable and scalable energy needs grow. Salem Township's abundant natural gas resources position it as a critical hub for powering technology's future.

The hearing also featured contributions from John Olejnik of International Brotherhood of Electrical Workers; Rep. Aaron Kaufer (R-Luzerne); and local construction leaders.