Near-Term Actions (2025–2027)

To establish Pennsylvania’s early leadership in the energy-data-AI economy, near-term actions must remove immediate barriers, signal serious intent to investors and developers, and set the stage for longer-term transformation. These first steps emphasize readiness, coordination, alignment, and community engagement. As much as possible, AI should be fully deployed across these areas, not just as a support tool, but as a strategic driver, to amplify early actions and build sustained momentum.

Speed to market is not a novel idea in economic development circles, but it is especially pressing today given the current and rapid deployment of capital to drive increased demand for AI-driven compute power. For Pennsylvania, this reality means even more aggressively streamlining permitting and building a meaningful inventory of sites spanning the readiness spectrum to ensure communities can meet energy-related development and the rising demand for AI. Projects under construction send the clearest signal of confidence to investors.

• Generate an inventory of redevelopment/reinvestment sites across Pennsylvania suitable for data centers, including sites on publicly owned lands with assessments of infrastructure elements, environmental remediation, and other land development requirements, leveraging the Commonwealth’s acceleration of site readiness, the PA Sites program, the existing inventory at PA Site Search, and the expertise and knowledge of local economic development practitioners.
  
  
• Elevate appropriate “No-Bottleneck Sites” across regions with zoning already in place for data centers, local approvals secured, and clear interconnection options to accelerate near-term construction. Include detailed energy attributes and new energy technologies such as geothermal, fuel cells, carbon capture, and behind-the-meter generation to guide companies with sustainability goals, clear interconnection contacts, comparative graphics that benchmark Pennsylvania’s energy strengths, and real-time updates on private-sector energy investments
  
  
• Accelerate the permitting modernization strategy by bundling approvals for energy, broadband, water, and zoning, modeled on successful frameworks in other states, expanding funding and resources for the Pennsylvania Office of Transformation & Opportunity (PA FastTrack), which conducts inter-agency coordination and transparency for project sponsors and the public alike, and using AI to streamline the process
  
  
• Establish regional permitting commissions to harmonize requirements across jurisdictions, supporting local municipal officials with effective technical assistance, providing access to expertise and resources to help guide their communities, and facilitating the delivery of permits

Co-location of data centers, advanced manufacturing, and energy generation optimizes land use and infrastructure investments. This strategy allows Pennsylvania to attract next-generation industries while maintaining reliability and sustainability. In the near-term, crucial steps are required to assess the feasibility of this complex approach.

• Commission a study with PJM, DOE, and/or PUC to identify where a transmission corridor could or should be built, including opportunities for upgrading existing transmission lines
  
  
• Launch AI Infrastructure Opportunity Zones in regions with aligned assets (e.g., sites zoned appropriately for data centers, with adequate power, water, broadband, and innovation anchors such as academic research institutions) to test integrated siting strategies that adapt to the anticipated evolution of data centers and offer targeted incentive packages that primarily focus on speed to market. Such a strategy recognizes certain parts of the state have the assets necessary to be poised for long-term growth and maximum spillover effects to industries in the supply chain and in industries using AI
  
  
• Coordinate state and federal funding streams to close energy infrastructure gaps that hinder data center deployment and industrial growth on top opportunity sites, ensuring projects create benefits for both industry and local communities

Pennsylvania’s manufacturing sector is central to competitiveness, but most small and mid-sized firms (SMEs) face barriers to adopting advanced technologies. AI offers an incremental, cost-effective path to productivity gains, yet many SMEs lack capacity to evaluate and deploy solutions. The initiative will strengthen supply chains, boost SME competitiveness, and extend benefits to communities across the commonwealth.

Team Pennsylvania will launch the AI Manufacturing Scaling Initiative to accelerate adoption and ensure SMEs are not left behind. The initiative will:

• Build strategic partnerships with technology firms and regional subject expert “guides” to expand access to AI expertise and resources
  
  
• Support the development and circulation of tools and templates to reduce friction and address implementation barriers facing SMEs
  
  
• Amplify knowledge sharing through network events and peer learning to elevate insights from early AI adopters and benefit the broader manufacturing community

Collaboration across business, academia, government, and communities is essential for Pennsylvania to keep pace with rapid technological change. Creating spaces for shared problem-solving will align infrastructure, investment, and innovation, ensuring accountability and accelerating execution.

• Accelerate academic-led research and development by pooling resources across Pennsylvania’s top-tier research institutions, building compute capacity, and focusing on applied AI and energy applications that directly advance Pennsylvania’s economy
  
  
• Establish a centralized AI–Energy–Data Center Ombudsman/Coordination Office to work in public-private partnership with government, utilities, communities, developers, and end-users to serve as a clearinghouse for information, sharing data and insights across organizations and agencies, and a project tracking center
  
  
• Expand information sharing statewide and regionally through existing networks such as PSATS, CCAP, PML, Pennsylvania Economic Development Association, PA Chamber and Team Pennsylvania’s cross sector collaboratives, ensuring ongoing visibility into AI developments and opportunities for community stakeholders to stay informed and engaged. 

Local governments are on the front lines of data center development and energy deployment. Providing tools and data that reflect evolving industry needs is both efficient and levels the playing field across Pennsylvania’s diverse geographic landscape. A strong, shared knowledge base ensures that growth is fair and future-ready.

• Conduct economic modeling on AI Impacts, data center development, and energy implications, using current projects as case studies, assessing grid modernization effects, and tracking Pennsylvania’s supply chain opportunities
  
  
• Partner with Pennsylvania State Association of Township Supervisors, County Commissioners Association of Pennsylvania and the Pennsylvania Municipal League to create model Community Benefit Agreements (CBAs), deliver outreach and training to local officials, and equip municipalities with tools to evaluate, plan for, and communicate the value of data-driven economic development
  
  
• Evaluate policy to modernize land use and permitting policy to better align local planning with high-growth industries and AI infrastructure needs, support municipalities with model zoning templates and technical assistance hubs, helping local officials update comprehensive plans and permitting codes to accommodate new industries
  
  
• Deploy immersive demonstration tools to help communities visualize the impacts of AI and energy infrastructure, making benefits and trade-offs more concrete for stakeholders

Pennsylvania’s talent is both a constraint and a competitive advantage in the race to attract AI and energy investment. To meet growing demand, training pipelines must expand, AI awareness must grow across the education and talent readiness system, and talent development must align tightly with industry needs. This effort must include reaching people of all ages, income levels, and geographies across the state, including those with little or no current exposure to AI or AI-related education so that every community has a pathway to participate in and benefit from this technological transformation. Talent readiness should be factored into site selection and community benefit strategies to ensure projects can scale and succeed.

• Conduct statewide talent demand assessments for construction, operations, and management roles across AI, data, and energy sectors, and publish results to guide investment decisions
  
  
• Develop rapid-deployment training cohorts with workforce development boards, labor, and academia to ensure skilled labor is available and mobile, recognizing that many workers will rotate between regional builds
  
  
• Prioritize career-connected learning and pre-apprenticeships near infrastructure corridors and pilot regions, creating visible entry points to middle-class careers in technology and energy
  
  
• Deploy an AI literacy program statewide through libraries, K-12 schools, community colleges, and other partners, demystifying AI while exposing Pennsylvanians of all ages, across all income levels and geographies, to practical AI applications and career opportunities