The $15 billion Pennsylvania Digital I (PAX) hyperscale AI data center project, a joint venture between Pennsylvania Data Center Partners and PowerHouse Data Centers, took a major step forward when the Middlesex Township Board of Supervisors voted unanimously to approve the construction of a critical 450 MW energy substation on the 700-acre site along Country Club Road. The approval clears the way for the next phase of construction, which could begin within days.

The substation is one of the first major infrastructure elements required before the data center buildings themselves can be installed, confirming that vertical construction had not yet begun prior to the vote.

Water Supply Secured Ahead of Construction

Earlier this year, the project ensured its essential utilities were in place. On January 15, 2026, Carlisle Development Partners signed a $14.1 million agreement with Middlesex Township to secure rights to the public water and sewer systems. This deal guarantees a reliable water supply for both construction and long-term operations. The water agreement, completed before the substation approval, was a critical step that enabled the project to move forward confidently toward Phase 1‑b, which includes the first data center campus.

Project Overview and Milestones

Pennsylvania Digital I (PAX) will deliver 1.35 GW of capacity, expandable up to 1.8 GW, making it one of the largest AI-focused data center developments in the U.S.

Master Plan: Three campuses, six buildings per campus, each with a dedicated 450 MW substation.

Fiber Connectivity: Direct peering with Ashburn, VA, plus 17 metropolitan fiber networks.

Near-Term Power Delivery: 300 MW expected by Q2 2027.

Investment Breakdown: $9.8 B for IT equipment, $3 B for construction, $1.5 B for power infrastructure, $750 M for cooling, security, and land.

Phase 1‑b, which includes the installation of the first data center buildings, is the next major milestone following the substation approval.

Economic Impact

The project is expected to generate significant local and regional benefits:

Job Creation: Up to 30,000 peak construction jobs and 270 permanent high-skilled positions in engineering, electrical work, and project management.

Tax Revenue: Over $65 million in direct tax revenue, including $45+ million for the Cumberland Valley School District, $10+ million to Middlesex Township, and $10+ million to Cumberland County.

Total Economic Impact: $37.5 billion over the life of the project, considering multiplier effects.

Igal J. Feibush, CEO of Pennsylvania Data Center Partners, speaking at the July 15, 2025 Pennsylvania Energy and Innovation Summit, highlighted the strategic importance of Pennsylvania’s natural energy resources: “We’re proud to help lead the charge in building the infrastructure that will define the next era of AI and technological innovation.”

Doug Fleit, CEO of PowerHouse Data Centers, added at the same announcement: “This campus is built for speed, engineered for growth, and located where the next wave of infrastructure will take shape for our customers.”

Community Engagement and Oversight

While the substation approval allows construction to begin, township officials remain mindful of community concerns:

Supervisors rejected proposals to expand the development area by over 214 acres along Harrisburg Pike.

A pause on further zoning changes for data centers was signaled until Middlesex Township updates its comprehensive plan, which is currently roughly 20 years old.

Residents raised questions about environmental impact, lighting, and long-term operations, highlighting the need for careful monitoring during construction.

Both developers are actively engaging with the community, supporting STEM education, nonprofits, and local hiring initiatives. PPL Electric Utilities will connect the campuses to the regional transmission system, ensuring reliable power delivery to the data centers and surrounding community.

Pennsylvania is expanding its role in AI and hyperscale data centers beyond Carlisle. The York 2 Energy Center developers are building a major energy hub to support digital infrastructure, highlighting the state’s emergence as a strategic location for power generation and AI compute facilities.

Technical Specifications

Workload Type: Hyperscale cloud computing and AI/ML training and inference.

Compute Infrastructure: High-density GPU computing (NVIDIA H100/H200 or GB200 GPUs), multi-exabyte storage, 400G/800G Ethernet or InfiniBand networking.

Cooling: Direct liquid and immersion cooling for high-density AI workloads.

Rack Power Density: 30–100+ kW per rack, PUE 1.1–1.3.

PAX is strategically positioned in Central Pennsylvania, forming the core of the emerging AI corridor in the Northeast. Its location ensures low-latency connectivity to major Eastern U.S. markets, strengthening Pennsylvania’s role as a competitive AI infrastructure hub.

Next Steps

With water rights secured in January 2026 and the substation approval on March 4, 2026, Phase 1‑b construction of the first data center is poised to begin. Subsequent phases will focus on building the remaining campuses, installing hyperscale infrastructure, and delivering AI compute capacity to meet demand from major hyperscale clients.

Pennsylvania Digital I (PAX) represents a transformative investment, combining scale, speed, and cutting-edge technology to reinforce Pennsylvania’s leadership in AI and data center infrastructure, while delivering substantial economic and social benefits to the surrounding community.

Pennsylvania Digital I (PAX) — Project Factsheet

Developers: Pennsylvania Data Center Partners, PowerHouse Data Centers

Location: Middlesex Township, Cumberland County, PA

Total Investment: $15 B

Site Area: 700 acres (three campuses, six buildings each)

Power Capacity: 1.35 GW (expandable to 1.8 GW)

Construction Status:

Water rights secured Jan 15, 2026

Energy substation approved Mar 4, 2026

Phase 1‑b (first buildings) ready to start

Infrastructure / IT:

Hyperscale AI/ML workloads

High-density GPUs and multi-exabyte storage

Direct liquid / immersion cooling

30–100+ kW per rack, PUE 1.1–1.3

Connectivity: 17 metro fiber networks, direct peering to Ashburn, VA

Economic Impact:

Peak construction jobs: 30,000

Permanent operations jobs: 270

Direct tax revenue: $65 M+ (school district, township, county)

Total economic impact over project life: $37.5 B

Key Milestones:

Jan 15, 2026 — Water rights agreement secured

Mar 4, 2026 — 450 MW energy substation approved

Phase Timeline:

Phase 1‑b: First campus construction to begin after substation

Subsequent phases: Remaining campuses built, full AI compute deployment