The $5 billion data center project at the York 2 Energy Center remains in the critical pre-construction phase, with a physical groundbreaking not yet occurring despite a July 2025 announcement. The project is currently navigating complex engineering and regulatory requirements to integrate a “giga-scale” data center with existing power generation assets in Peach Bottom Township. The project is set to make Pennsylvania a key hub in the nation’s AI and tech infrastructure boom with the data center set to join the ranks of the giga datacenters being planned around the country.

The project adds to a growing pipeline of large-scale AI infrastructure investments in Pennsylvania, including the $15 billion Pennsylvania Digital I (PAX) data center development in Middlesex Township near Carlisle.

A primary focus involves securing grid integration approvals and finalized power-sharing agreements, as the facility is designed to draw massive amounts of electricity directly from the York 2 gas turbine plant and a nearby nuclear facility. This “behind-the-meter” strategy requires rigorous technical review to support the intense energy demands of artificial intelligence.

Despite the lack of active construction, the project remains a central, high-priority investment for the state’s AI and energy infrastructure goals, developed by Energy Capital Partners. The site is currently undergoing necessary environmental and zoning assessments to transition from a conceptual plan to an active construction site.

Driving Economic Growth and Job Creation

On July 15, 2025, the project was highlighted during the Pennsylvania Energy & Innovation Summit in Pittsburgh, where U.S. Senator Dave McCormick pointed to the development’s transformative scale. At the same event, Kevin Schreiber, CEO of the York County Economic Alliance, described the investment as a major economic opportunity for the region. Developers expect the project to create about 2,500 construction jobs while supporting local businesses through supply chain activity and increased service demand. Together, these impacts position the data center as both a major technology investment and a significant economic driver for southern York County.

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Built on Strong Energy Infrastructure

The data center will be located at Calpine’s York 2 Energy Center, an 828-megawatt dual-fuel combined-cycle gas turbine power station in Peach Bottom Township. It will also benefit from proximity to the Peach Bottom Clean Energy Center, a nuclear facility operated by Constellation Energy and PSEG. The nuclear plant currently employs more than 750 people and recently filed to extend its operating license through 2054. This unique blend of energy assets ensures the new data hub will have access to reliable, high-capacity power essential for running advanced computing systems.

York County’s Transformation into a Tech-Energy Hub

Once primarily known for its role in traditional power generation, York County is now embracing a new identity. The transition from a power supplier to a high-tech data host signifies a historic evolution. Local leaders like Commissioner Julie Wheeler see this project as a launchpad into a new era, aligning York with national trends in energy and digital innovation. With the rise of AI demanding localized, secure data centers powered by dependable energy, York County is strategically positioned. The investment isn’t just reshaping the skyline; it’s redefining the county’s role in the global digital economy, bridging its industrial past with a tech-driven future.

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York 2 Energy Data Center Project Overview

Location: York 2 Energy Center site, Peach Bottom Township, York County, Pennsylvania

Total Investment: $5 billion

Developer: Energy Capital Partners (parent company of Calpine Corporation)

Purpose: To establish a high-capacity data center supporting AI infrastructure and digital services

Site Advantage: Powered by the existing 828 MW dual-fuel York 2 Energy Center

Nearby Assets: Adjacent to the Peach Bottom Clean Energy Center (nuclear facility jointly operated by Constellation Energy and PSEG)

Job Creation: Approximately 2,500 new construction jobs expected

Economic Impact: Project will boost local businesses, workforce development, and economic activity in York County

Strategic Importance: Part of a broader $90 billion state-level investment in AI, energy, and innovation

Energy Integration: Leverages existing natural gas and nuclear assets to ensure reliable data center operations

Government Support: Backed by U.S. Senator Dave McCormick and York County leadership

Sustainability Potential: Integration with low-emission and clean energy assets aligns with long-term energy transition goals

Long-Term Vision: Positions York County as a hub for tech-driven growth and energy innovation