Pittsburgh bets big on data centers and AI-driven growth
Writer: Andrea Teran
May 2025 — Once known for its steel mills, Pittsburgh is increasingly becoming synonymous with artificial intelligence. The region is now laying the groundwork not just for AI innovation, but for the data infrastructure to power it, positioning itself as a rising tech corridor in the Mid-Atlantic.
At the core of this transformation is a convergence of AI, advanced manufacturing, and energy infrastructure — an intersection that leverages Pittsburgh’s industrial past to build its digital future.
“AI is the new steel,” said Joanna Doven, executive director of the AI Strike Team, as cited by Axios. “Companies are going where there is speed and ease. If they’re pitched with land, power and permitting, they will come.”
One of the most ambitious projects reshaping the landscape is the redevelopment of the former Homer City coal plant, 50 miles east of Pittsburgh, into a $10 billion natural gas-powered data center campus. Backed by Homer City Redevelopment, the project will generate up to 4.5 gigawatts, enough to power 3 million homes, making it one of the largest power generation facilities in the country.
The project anchors a broader strategy to capitalize on the surging global demand for AI infrastructure, catalyzed by energy-hungry applications like OpenAI’s ChatGPT and expanding cloud services. A ChatGPT request uses nearly 10 times as much electricity as a Google search, according to a 2024 electricity analysis and forecast by the International Energy Agency.
To ensure Pittsburgh doesn’t miss its moment, a coalition of academic, private sector, and civic leaders has launched the AI Strike Team. Their goal: attract billions in AI infrastructure investment through Operation Stargate Pittsburgh, a local bid to secure projects from a $500 billion national data center initiative funded by major tech players including OpenAI.
The coalition is identifying remediated industrial sites — such as the Aliquippa riverfront — for new developments, and advocating for tax incentives, energy access, and streamlined permitting to attract hyperscale data centers.
Data centers have become a critical yet controversial component of this new economy. While Pennsylvania now hosts 71 data centers — 42% of which are in the Pittsburgh area — their water and energy consumption has drawn scrutiny. According to the U.S. Department of Energy, data centers could consume up to 12% of U.S. electricity by 2028, up from 4.4% in 2023.
Still, industry advocates argue the economic benefits extend beyond the server racks. Pennsylvania’s data center sector supported 154,000 jobs in 2024, including indirect and induced roles, and direct jobs grew 48% between 2018 and 2024.
“We’re working closely with Lenape Tech, our vocational school, and Butler County Community College (BC3), both of which are ready to adapt to the needs of incoming industries like data centers, which are tech-driven,” said Armstrong County Commissioner Chairman John Strate in an interview with Invest:.
As Pittsburgh builds out its AI infrastructure, balancing economic opportunity with environmental stewardship will be essential. Industry leaders note that AI’s integration into traditional sectors is helping fuel innovation without abandoning legacy business models.
“AI is an opportunity, not a challenge,” said Robert Fragasso, chairman and CEO of Fragasso Financial Advisors. “Automation frees our team to focus on complex work like succession planning.”
The region’s AI evolution isn’t confined to major enterprises. For small businesses and entrepreneurs, automation and machine learning are opening new doors for sustainable growth.
“Automation makes resources more efficient, scalable, and accessible. That’s the next wave — enabling growth for anyone, anywhere,” said Melanie Marie Boyer, CEO of the Pittsburgh Metropolitan Area Hispanic Chamber of Commerce.
Boyer’s organization has deployed an AI-powered Smart Advisor system to provide 24/7 support to Latino entrepreneurs — a sign of how local institutions are using emerging technologies to bridge longstanding access gaps.
While Pittsburgh’s AI ecosystem is expanding in scope and inclusivity, challenges persist around capital access and startup retention. A report by Ernst & Young and Innovation Works found the region raised $1.89 billion in tech investment in 2024, down from $3.12 billion in 2023 and trailing behind peer metro areas. Venture capital is skewed toward larger coastal cities, and startups like Solstis, a CMU spinout, are still drawn westward by the rapid pace and scale of Silicon Valley funding.
Yet the ecosystem remains robust. Over 100 AI and robotics firms now call Pittsburgh home, employing more than 6,300 workers, according to the Pittsburgh Business Times. Major players like Aurora Innovation, Duolingo and Google anchor this cluster, while emerging firms and university labs continue to drive innovation.
Top image: screengrabs via Homer City Redevelopment/YouTube
For more information, contact:
https://www.homercityredevelopment.com/
https://www.innovationworks.org
