The Center Square — If there’s one phrase that’s impossible to escape in the news this year, it’s artificial intelligence, and Pennsylvania has been at the forefront.
Leaders at the national and state levels, academics and industry stakeholders have all worked to make the Commonwealth a premier destination for AI innovation. Here’s a look at where they’ve succeeded and where there’s still work to be done in 2025.
Data centers
At the center of the AI debate is the rise of data centers, facilities built to house the resource-intensive servers needed to run AI applications. The polarizing constructions have brought in billions for the state while sparking controversy from communities concerned about their environmental and aesthetic impact. Throughout the year, legislators held several audiences to try to adapt to rapidly evolving changes.
In April, the state made its largest capital investment of $10 billion to convert the site of a former coal-fired power plant into a Data Center Campus powered by natural gas. This figure was quickly surpassed when Amazon announced a An investment of 20 billion dollars for data centers in Luzerne and Bucks counties in June.
Big Tech’s combined $90 billion investment was enough to President Donald TrumpRepublican U.S. Senator Dave McCormick and Democratic Governor Josh Shapiro traveled to Pittsburgh to discuss AI with industry leaders in front of a live audience. The event demonstrated the strength of the bipartisan appetite to capitalize on the AI boom while promising to outpace China in the race to develop tomorrow’s technologies.
Power
The energy required to win the AI race is considerable, and experts expect unprecedented demand in Pennsylvania and beyond. For the Commonwealth, a net exporter supplying about a quarter of the PJM grid’s energy, the “all of the above” energy approach has been key to generating investment.
Moderates and conservatives, including the Trump administration, have celebrated the state’s vast natural gas resources in the Marcellus Shale. Residents close to fracking in the state’s western region are less optimistic about increased production of fossil fuels.
Another controversial energy source is the revitalization of the country’s nuclear industry. Amazon’s data center in Luzerne County will directly operate the Susquehanna Nuclear Power Plant, while Three Mile Island will come back online as the Crane Clean Energy Center to support Microsoft’s efforts. This decision prompted mixed reactions of the public, while small modular reactors have attracted the attention of lawmakers seeking safe and clean energy sources.
Promise
What is the outcome of the AI revolution? The technology promises to reshape the landscape of several major Pennsylvania industries, including health care and defense. U.S. Rep. Chrissy Houlahan, D-West Chester, joined her colleagues on the National Security Commission on Emerging Biotechnologies in the Commonwealth for her Biotech Tour Across America.
The move doubled down on state-level policy agendas to grow the industry, particularly life sciences, which saw new doors opening with the help of AI. University Centers of Philadelphia and Pittsburgh have rushed to build a reputation as global AI hubs, from robotics at Carnegie Mellon to politics at the University of Pennsylvania.
Pittsburgh’s AI Strike Force hosted the AI Horizons Summit where Shapiro and McCormick both spoke about their goals for bringing AI to the state and the urgency with which they approach the topic. Other industry leaders, such as those already using AI in health carespoke about the latest developments in their fields.
Politics and ethics
With great power comes great responsibility. Enter difficult discussions about how to use AI appropriately and what it could mean for the future of humanity. In August, Place du Center sat down with Dr. Michael Kearns to discuss the ethical questions posed by AI.
In October, TCS examined environmental concerns beyond energy demandspeaking to Howard Neukrug, former commissioner and CEO of Philadelphia Water and executive director of the University of Pennsylvania Water Center, who launched the Water-AI Center of Excellence in partnership with industry and utility leaders..
State leaders addressed topics such as content provenanceor trace the digital footprint of a piece of content back to its original creator, and information literacy facing waves of AI-generated images and more.
Organizers fought against the environmental impact of AI while attract attention to the loss of jobs that is expected to follow the increased use of AI. The legislators started trying to regulate ways AI can be used in healthcare, while catching up legislation around data centers.
