QTS, a data center operator owned by Blackstone, has acquired multiple land parcels in Northeastern Pennsylvania for the development of data center facilities
In sum, what to know:
Large-scale investment – Blackstone will invest $25 billion in Pennsylvania’s energy and data infrastructure, with the aim of attracting further private-sector investment totaling up to $60 billion.
Energy and data center buildout – QTS will develop new data centers, and a joint venture with PPL will construct natural gas power plants to support increased electricity demand.
Jobs and permitting – The project is expected to support thousands of jobs and will use Pennsylvania’s “Fast Track” system to streamline the permitting process.
Alternative asset manager Blackstone has announced plans to invest more than $25 billion through its infrastructure and real estate funds to support the development of energy and digital infrastructure in Pennsylvania.
In a release, the company said that the initiative is also expected to draw up to $60 billion in additional investment into the state from other sources. The move follows Blackstone’s ongoing activity in sectors such as data centers and power infrastructure.
Jon Gray, Blackstone’s president and chief operating officer, said: “We’re thrilled to be investing behind two of our highest conviction themes – digital infrastructure and energy – in a part of the country that is ideally situated to support and expand America’s leading position in the AI revolution.”
Sean Klimczak, Blackstone’s global head of infrastructure, added: “Pennsylvania is transforming into a strategic hub for AI innovation, and we’re excited to work with our partners at PPL to invest in the generation needed to support this critical digital infrastructure.”
QTS, a data center operator owned by Blackstone, has acquired multiple land parcels in Northeastern Pennsylvania for the development of data center facilities. The company also plans to issue a request for information to identify other localities that may be interested in hosting future projects.
As part of the broader infrastructure effort, Blackstone and PPL have created a joint venture that intends to invest in new natural gas power plants in the state. These would supply electricity for future data centers and related facilities.
Blackstone estimates that the construction phase will create or support around 6,000 jobs annually over a 10-year period, with another 3,000 permanent roles expected once operations begin.
Pennsylvania currently produces about 20% of the United States’ natural gas, making it one of the country’s leading sources of relatively low-cost energy. This supply is seen as important for the operation of energy-intensive facilities such as AI data centers.
Construction is scheduled to begin by the end of 2028, subject to permits and approvals.
Tag Greason, co-CEO of QTS, added: “Pennsylvania is well positioned for data center growth and has become a market where we’re seeing substantial demand from hyperscalers and other customers for high-quality digital infrastructure. We look forward to engaging with communities and leaders across the Commonwealth to position our leading data center platform to support the digital infrastructure needs of Pennsylvania businesses and families.
AI cloud company CoreWeave recently announced plans to invest over $6 billion to develop a large-scale data center in Lancaster County, Pennsylvania, with the main aim of supporting high-performance AI workloads.
The firm said that the site will initially support 100 megawatts (MW) of power capacity, with the potential to expand to 300 MW. CoreWeave also stated that the data center facility will be equipped to run advanced AI computing infrastructure and is part of the company’s broader strategy to expand its U.S. data center footprint.
Data center and energy firms have committed to invest $90 billion in Pennsylvania to support the development of the state’s digital and energy infrastructure.
The investment plans were announced during the first Pennsylvania Energy and Innovation Summit, held earlier this week in Pittsburgh. The event was attended by President Donald Trump and Pennsylvania senator Dave McCormick, along with executives and investors from across the U.S. and abroad.
