In the face of pushback from critics, data center developers and supporters argue that the developments are worth it for the benefits \u2014 financial and otherwise.<\/p>\n
But how much impact would data centers have on the Lehigh Valley economy?<\/p>\n
Data centers aren\u2019t new to the region. In fact, they already have been an important part of its economic growth.<\/p>\n
Tek Park in Upper Macungie Township<\/a>, for example, has been operating as one for at least 15 years. Other businesses, including Broadcom<\/a> and local healthcare systems, also have been using them.<\/p>\n \u201cPeople have really kind of discovered this term data center with this movement to hyperscaling to build these mammoth projects,\u201d Lehigh Valley Economic Development Corp. President and CEO Don Cunningham said. \u201cWhat\u2019s driving a good portion of the opposition is the massive-sized ones.\u201d<\/p>\n The LVEDC considers data centers to be more of foundational infrastructure, similar to power plants, rather than high-value development.<\/p>\n While essential to support a modern technological economy and cloud-based services, data centers require fewer employees than other industries once operational.<\/p>\n Consequently, regional economic groups such as the LVEDC do not dedicate heavy resources toward recruiting them compared with high-job-creating facilities such as Eli Lilly and Co.\u2019s plan to build a $3.5 billion manufacturing plant<\/a> or Chobani\u2019s $1.2 billion investment<\/a>, both in Upper Macungie Township.<\/p>\n \u201cThey\u2019re really more infrastructure projects,\u201d Cunningham said, \u201cvery much like a power plant or a substation or a large transmission line. It wouldn\u2019t fall into a high value category. In the Lehigh Valley market, it would not rise to the level where we would put a lot of resources and effort behind it.\u201d<\/p>\n The New York Times reports<\/a> that there are 78 data centers in operation across Pennsylvania, with 51 more in the pipeline. That puts it in 11th place among the states, with Virginia \u2014 and its heavy concentration of data centers near Washington in Loudoun County \u2014 way in front with almost 700 either built or planned.<\/p>\n In the Lehigh Valley, there are five hyperscale projects being reviewed, all of which have received pushback from residents; a sixth was recently abandoned at the former Air Products headquarters in Upper Macungie.\n<\/p>\n How many jobs?<\/p>\n Dan Diorio, vice president of state policy at the national Data Center Coalition, said hyperscale data centers usually have 100-250 direct positions, while multitenant data centers have between 30 and 50.<\/p>\n Overall, the Data Center Coalition says there are about 30,000 permanent employees at data centers in Pennsylvania, but when indirect jobs are included, the number increases by 100,000.<\/p>\n For some communities, Diorio says, fewer onsite jobs means less strain to local roads and school systems, which makes such buildings more desirable.<\/p>\n \u201cWith less of a job footprint there is less of an infrastructure strain,\u201d he said. \u201cYou don\u2019t have the need to house new individuals. You don\u2019t have the need to have the space in your schools. You don\u2019t have that many more people on your roads.<\/p>\n \u201cWe\u2019ve actually heard from communities where they say, \u2018This actually fits our economic development needs really well. We don\u2019t have the infrastructure to build 350 more homes, but we\u2019re seeing a significant economic impact.\u2019 \u201c<\/p>\n While data centers don\u2019t create as many permanent jobs as warehouses and manufacturing, studies have shown there are other financial benefits in the area where they\u2019re built.<\/p>\n Alberto Lamadrid, an economics professor at Lehigh University, said having local data centers could mean more efficiency for local industries.<\/p>\n \u201cEventually, this could transform into higher productivity for workers,\u201d Lamadrid said. \u201cThe promise of artificial intelligence means that people are going to become more productive.\u201d<\/p>\n Workers will also be employed to build data centers, which has attracted union support.<\/p>\n \u201cWe have a huge pool of building trades and skilled workmen, welders, pipe fitters, steam fitters, electricians, and you need that to build all this energy infrastructure,\u201d U.S. Sen. Dave McCormick, R-Pa., said last year at one of the\u00a0two innovation summits he\u2019s hosted to promote Pennsylvania as a tech center.<\/p>\n Diorio said those construction jobs are not necessarily temporary ones, as companies usually retain contractors to build more than one facility. That means many workers could find themselves in data center construction jobs for a decade or more.<\/p>\n Beyond that, local contractors such as electricians, pipefitters, HVAC technicians and plumbers will be hired to maintain the facilities once they\u2019re built.<\/p>\n \u201cWe\u2019ve seen data center construction jobs turn into, what ostensibly was two to three years, turn into five, six, seven, eight, nine, 10 years,\u201d Diorio said.<\/p>\n \u201cData centers are contracting with those local electricians \u2026 saying, \u2018Hey, we basically need you at our data center multiple times a week, if not virtually every day.\u2019 \u2026 That is a tangible employment impact that folks don\u2019t recognize.\u201d<\/p>\n That has drawn the support of trades unions, which have been openly campaigning for data center projects.<\/p>\n The North American Building Trades Unions recently signed an agreement with Blackrock and the AI Infrastructure Partnership to support the growth of AI and energy infrastructure investment needed to power it.<\/p>\n \u201cNABTU is proud to partner with BlackRock and AIP to help build the skilled workforce that will power America\u2019s data revolution,\u201d said Sean McGarvey, president of NABTU. \u201cAs we\u2019ve said, there is no shortage of men and women ready to build America\u2019s future; what is needed is the workforce planning, industry partnerships, and sustained investment required to connect people with world-class training and family-sustaining careers.\u201d<\/p>\n \u201cWhen people say, you know, \u2018data centers are the root of all evil,\u2019 we\u2019re just saying, \u2018look, they do create a hell of a lot of construction jobs, which we live and work in your communities,\u2019 \u201d Rob Bair, president of the Pennsylvania Building and Construction Trades Council, told SpotlightPA.<\/p>\n Lamadrid said in heavy data center hubs such as Virginia, multiplier models estimate up to 10 indirect jobs \u2014 service providers, contractors \u2014 are supported by every single direct job.<\/p>\n \u201cIn indirect impacts, they could be as large as around 10 [for every direct job],\u201d he said. \u201cThis is happening in Virginia mostly because Virginia has a huge concentration of data centers. I don\u2019t know that in the Lehigh Valley we\u2019re going to be having that many.\u201d<\/p>\n Powerful profits<\/p>\n The Data Center Coalition estimates the total contribution to the state\u2019s gross domestic product is $19.6 billion.<\/p>\n The potential for such revenue has made some state officials big backers of data centers. One of those is McCormick, who has made tech development a priority since he was elected in 2024.<\/p>\n It has been a bipartisan effort. Democratic Gov. Josh Shapiro has worked with McCormick to bring technology investments to the state. Shapiro was enthusiastic about data centers, and the potential for economic development, but has pulled back during his reelection campaign against Republican state Treasurer Stacy Garrity, who has also tempered her position<\/a>.<\/p>\n Still early in his term, McCormick has been moving quickly to attract more tech business, including data centers, to the state, in a quest to keep the U.S. competitive with such countries as China as artificial intelligence grows.<\/p>\n McCormick\u2019s innovation summit in Pittsburgh in July 2025<\/a> attracted business leaders and politicians, including President Donald Trump. It brought billions of dollars in investments, including funds for massive data center projects.<\/p>\n Lamadrid said the federal government has provided strong backing for data centers from the Department of Energy and the National Science Foundation<\/p>\n \u201cAt the federal government, at the national level, even the funding agencies are providing plenty of funding in these areas,\u201d he said. \u201cBasically, they are encouraging it.\u201d<\/p>\n Allentown-based PPL Corp. said at the Pittsburgh summit that it would invest $6.8 billion through 2028 to expand grid capacity and modernize transmission across multiple Pennsylvania counties to support growing power demand. The projects are expected to create 3,400 jobs in Pennsylvania. PPL also announced a joint venture with Blackstone, an investment company, to develop, own and operate combined-cycle gas generation capacity.<\/p>\n