SC/PA Data Center Collaboration

[Jim Wylie]

Hello Clean Energy Team,

At the Jan 7 Winter All-Hands Meeting (slides, recording) we discussed how several of our PA Chapter Conservation Teams could collaborate on the topic of Data Centers - which span several areas of concern and therefore several team's areas of expertise.

Kara and I suggest the following plan/format encouraging several teams to contribute to the data center resources that the Dirty Energy Team has started.

1. There is a new Data Center shared folder: Conservation Teams / Data Centers
   Let me know if anyone has trouble accessing
   
   
2. The Data Center Resources Sandbox is a spreadsheet that we can all contribute to - add links to articles, other org's resources, your thoughts. Look for the Clean Energy tab at the bottom.
   
   
3. Review the Chapter Data Center web page and send suggestions to Jim
   The page is live, but it's not linked on the top menu yet.
   
   
4. Meetings - find the notes from the Dirty Energy team meetings here. The last 6 months have mostly been just about data centers. All are welcome to attend upcoming meetings - usually the 3rd Monday - unless that falls on a holiday, like Presidents Day. Then it will be the following Tue. Find all Consv Team meetings on the SC Teams calendar.
   
   If there is interest in hosting a special meeting for a data center topic, let Kara know.
   
   

One issue that the Dirty Energy team has stumbled on is how clean energy can play a role in powering data centers in Pennsylvania. The amount of land needed for solar seems staggering for PA. And the energy storage tech doesn't seem to be there at the scales needed. And if they don't use clean energy, what will be the impact to PAs climate goals?

The idea of "the grid" being smart enough to use solar from wherever during the day and switching to ... gas? ... at night - to cover many (perhaps dozens in PA) of centers requiring 1 GW of power continuously seems overwhelming. 

Suggestions from the Clean Energy team about how state or local policy could require x% of energy used by data centers be sourced from clean sources would be welcome. I'm sure other states have already grappled with this issue.

Thanks,

Jim and Kara

[Alan Mandl]

It is tricky to get large scale sources of renewable energy.

In Massachusetts, I recall a city purchasing power on a competitive basis.

The Mayor opted to purchase 100% green energy and the contract was

duly publicized. It then came under attack because the renewable energy

was based on supplier purchases of renewable energy credits in Texas and not on renewable 

energy sources within the state. 

I don't know if there is a transmission connection between Hydro Quebec and PA, but

Hydro Quebec has been a major supplier to NY and New England. 

Bloom Energy stock has gone way up based upon its deals with data center developers.

Its batteries have been deployed. Most likely the batteries use natural gas as a source, but

that could be checked.  

Alan

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[Jim Wylie]

Thinking about the question of - is there a renewable energy option for data centers (or at least in large part)? 

Made me think of the Penn State webinar from March 2025 - What is the Best Energy Source: Nuclear, Solar, Natural Gas, or Wind? 

In that webinar they shared this map of the US with where the abundant energy sources are across the country:

In case its too small to read - yellow is solar, blue is wind, green is solar + wind, grey is gas. And here's a larger image.

So I think the Sierra Club should take a position of - build your dang data centers in the midwest or southwest. You'll be able to partner with new clean energy developers in the region. Use gas to cover the variability of solar and wind.

Just wanted to get your feedback on that.

Jim

On Thu, Jan 22, 2026 at 9:56 AM Jim Wylie <jimw...@gmail.com> wrote:

[Ellen Foreman]

That's a great idea Jim. 

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.

[Alan Mandl]

It may be off point, but one could distinguish more traditional telecom hotels from the hyper scale data center and crypto mining. The smaller traditional facilities did not have the serious negative impacts that current proposals would have. Making the distinction makes Jim’s idea more reasonable. Some development is inadvisable. 

The pushback will be that rebuffing hyperscale data centers is bad for the economy and at odds with McCormick and the Governor selling PA to high techs, hedge funds and the like. Some states are offering tax incentives to data centers that comply with some restrictions and requirements that would make them qualified data centers. 

I’d like to see a utility refuse to serve a hyperscale data center based upon financial harm to the utility and its other ratepayers. 

Some states mention community benefit agreements. Are they allowed in PA?

Alan 

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[Nathan Reagle]

Hi all,

A few thoughts:

• When the mention of "Sierra Club taking a position" is made, is that meant to be national Sierra Club or Sierra Club Pennsylvania Chapter? 
• I'd urge caution with this messaging for multiple reasons
• There are more environmental risks from data center development than just energy demand (water use being a widespread concern)
• This could be perceived as NIMBY and PA determining that other areas are better than PA regardless of what the other areas may think (imagine if Nevada pushed stuff they didn't want to PA because it was better for them)
• Along these lines, water use would likely be a major concern for the SW
• Ultimately, data centers are going to attempt to develop where it is easiest and cheapest

My main point: please use caution with messaging since it could unintentionally create other issues.

Thank you,

Nate Reagle Clean Energy Program Advocate Sierra Club Pennsylvania Chapter  Pronouns: he, him, his nathan...@sierraclub.org

On Mon, Jan 26, 2026 at 6:26 PM Jim Wylie <jimw...@gmail.com> wrote:

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[Alan Mandl]

It would not be well-perceived to categorically oppose any and all data centers in PA and advocate that

data centers be put in other states based on assumptions about their water and renewable energy supplies. 

Data centers come in different sizes with different impacts.

We don't have specific facts upon which to base a statement that this state or that state has adequate

water and renewable energy power supplies to support X amount of data center demand in unknown locations within these states. Also, there may be opposition to specific data centers in those states, just as there is in PA.

The opposition needs to be specific and fact-based. Water supply is a good example: 

adequacy of water supply to meet data center and all other user demands?

impact of increased demand on the water supply infrastructure, capital and maintenance expenses?

effect of added datas center demand on water bills of other users? 

wastewater management and disposal issues?

effect of any data center use of non-public water supply and whether that would tap 

into other user sources of well water or any sources of public water supply?

how would a data center handle curtailments on its water consumption during droughts that  require limits on water usage? 

The effect of a hyperscale data center on water tables and water runoff should be considered. 

These are not NIMBY issues. They may make a data center infeasible at a specific location. 

A factual record is needed in order to support opposition and permit denial. 

There are other impact issues that might support opposition to a specific project.

Opposition to transmission line, nuclear and wind projects illustrates the complexity of

permitting a large scale project. 

There is less local control over the power supply/energy issues. The state might provide tax incentives for the use of 

renewables. There might be incentives to use battery backup rather than diesel generator backup. But it may be

hard to say no natural gas. If the use of gas creates public health and safety issues, that could be a basis for 

opposing a specific hyperscale data center. The condition of the gas distribution system in the area could be an issue-the cost of

capital expenditures needed to enable gas supply for a data center should be recovered from the data center as a contribution

in aid of construction and not buried in rate base. The prevalence of existing gas leaks should be checked. The same goes for incremental electric transmission and distribution investment.   

If an analysis backs it up, the utilities need to refuse to serve a hyperscale data center based upon adverse

financial impacts upon the corporation, its shareholders and the general body of ratepayers. 

 

Alan

  

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[Jim Wylie]

Thanks for this discussion.

Nate - I was suggesting that the national Sierra Club might consider as part of our pending policy on data centers be to encourage siting where abundant renewable energy is available - midwest and southwest. Not the northeast US.

Nate - you are correct that a motivation for choosing PA is availability of water for cooling. While data centers can use tremendous amounts of water (like 5 million gallons a day), I think there are other cooling design options - closed loop water systems. ?? I don't know if closed loop systems are an option in the areas where wind and solar are abundant.

Alan - I will fwd your water use concerns to the Water Quality team.  I was trying to urge the Clean Energy team to have a discussion about whether there are clean energy options for data centers in PA. 

Alan - your point that PA should offer tax incentives for new projects that are powered (in some degree) by renewables is a good one. It makes no sense for PA to subsidize AI and data center projects in PA that use nuclear or gas. [Google "shapiro data centers tax incentives"]

All - I think another dimension that I don't hear being discussed (maybe I've missed it) is the potential setback to PA climate goals (80x50) if we see a sudden increase in data centers that are powered by burning fossil fuels. 

This UtilityDive article - Can power demand boost renewables above policy obstacles in 2026? - says:

[Despite the winding town of tax incentives,] some industry sectors still see considerable opportunity for renewables in the U.S., as renewable energy generation can often come online more quickly and cheaply than a fossil fuel plant.

Analysts continue to forecast staggering load growth over the next five years, and supply chain bottlenecks are resulting in five- to eight-year estimates for the deployment of new gas generation. The newest nuclear reactors took about 15 years to complete.

New utility-scale solar and wind generation, in contrast, can deploy in as little as a year and now account for most new generating capacity.

And in today's news - Sam Altman-backed Exowatt launches arm to power data centers with renewables. Which could be industrial greenwashing, but it's the kind of headlines we should be paying attention to.

The topic of data centers, I think, needs to be looked at from local, state, regional and national perspectives. It's hard to focus on one level only - yet each needs its own written policies. 

Jim

[Jim Wylie]

Continuing the discussion on how to get data centers to use a significant amount of renewable energy ...

I expect even sites that build on-site gas-powered generation will still tie into the elec utility grid. Right? For backup and for when prices are cheaper from sources on the grid than what they can purchase gas for. Right?

So if PJM gets their act together and gets the backlog of renewable energy projects moving and built, then, in theory, these data centers to choose to ink contracts with a solar PPA for xx MWh of energy per year and displace some of the gas they are burning. They will still need to burn the gas when the sun is not shining. 

And, PA could REQUIRE new data centers to invest (contract with) new clean energy companies and use that energy when it comes online. Right?

Perhaps some of you have already at this understanding. I'm still trying to get my head around how PA could require data centers to use renewable energy if renewables cannot generate 24/7 reliable power.

Talk more tonight.

Jim