It is no secret that the artificial intelligence (AI) revolution is underway. What remains less widely understood is that the success of this revolution will not be determined solely by software, algorithms or venture capital. It will be determined by physical infrastructure—power generation, transmission capacity, industrial supply chains and the facilities that house advanced computing systems.
But capturing that opportunity requires more than capital. It requires navigating complex regulatory frameworks, recognizing opposition from the ground, securing energy capacity and executing projects at speed.
Buchanan partners with clients across each stage of the data center lifecycle—helping turn market opportunity into successful, scalable infrastructure. Our team can work with you to provide a plan for success.
A Market Taking Shape
In particular, Pennsylvania is uniquely positioned to support the next generation of data center and AI infrastructure development. As highlighted in the recent report “Pennsylvania Builds the Cloud: Manufacturing, Energy, and Data Center Development,” the Commonwealth offers a rare alignment of assets across manufacturing, land availability and energy production.
Managing Development, Supply Chain and Workforce
In 2024 alone, Pennsylvania exported nearly $14.6 billion in data center-related materials across the PJM region, including generators, fabricated metal products, electrical components and precision-machined systems critical to high-performance computing environments. The Commonwealth can source much of the required infrastructure domestically and regionally, lowering transportation costs and insulating projects from supply chain disruptions. Pennsylvania’s manufacturing sector is not operating in isolation. It is directly linked to both the energy systems that power data centers and the construction ecosystem that delivers them, creating a structured flow system that delivers timely results. This integrated supply chain—combined with a skilled workforce of electricians, pipefitters and heavy equipment operators—helps reduce delays and improve execution certainty.
Accelerating Land Use, Zoning and Regulatory Approvals
The state’s evolving approach to infrastructure delivery—highlighted by initiatives like the proposed G.R.I.D. framework—signals a shift toward faster, more predictable permitting and approvals.
While the full details of the program are still forthcoming, its intent is unmistakable: reduce friction, increase certainty, and accelerate timelines for large-scale investment.
Large-scale projects still require coordination across state agencies, local governments and regulatory bodies. Our Buchanan team provides a cohesive strategic approach working across all levels of government.
Powering the Project: Energy Strategy as a Competitive Advantage
Data centers are fundamentally constrained by power, and Pennsylvania is the largest net exporter of electricity in the United States and the leading generator within the PJM Interconnection, the largest wholesale electricity market in the country. Its energy portfolio is anchored by natural gas, nuclear generation, and legacy baseload infrastructure that provides consistent, dispatchable power. Hyperscale data centers require not just large quantities of energy, but reliable energy delivered continuously and without interruption. Recent policy direction has further strengthened this advantage.
From Opportunity to Execution
Early movers will define Pennsylvania’s data center landscape—while later entrants may face increased competition for resources and approvals.
Pennsylvania’s strength lies in its ability to align manufacturing, energy, land and workforce into a cohesive ecosystem. That alignment is creating a self-reinforcing cycle of growth—one that will shape the physical backbone of the AI economy for years to come.
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