PowerHouse JV to Build $15B Pennsylvania Data Center Hub
Three campuses will provide 1.35 gigawatts of power once complete.
PowerHouse Data Centers has formed a joint venture with Pennsylvania Data Center Partners for the development of a $15 billion, 1.35-gigawatt data center project in Carlisle, Penn.
Dubbed PAX, the 700-acre AI hub will comprise three campuses, each with six buildings. Furthermore, each campus will have its own, 450-megawatt substation. The partnership expects the first 300 megawatts to come online by 2027’s second quarter. PPL will provide electricity for PAX and will connect the three campuses to its transmission system.
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The 4.2 million-square-foot, master-planned development will provide access to 17 metropolitan fiber networks, including direct peering to Ashburn, Va. The site includes an option for further expansion, which would bring the total capacity to 1.8 gigawatts.
Local tax incentives and expected revenue
The partnership will benefit from Pennsylvania’s data center tax incentive program, which will result in a 100 percent abatement for sales and use taxes on equipment and electricity for up to 15 years.
Still, the hyperscale project is expected to generate more than $65 million in direct tax revenue, of which $45 million will go to the Cumberland Valley School District, $10 million to Middlesex Township and $10 million to Cumberland County.
The news follows PowerHouse Data Centers’ recent project in Louisville, Ky. With Poe Cos. as partner, the company will develop a 400-megawatt hyperscale campus. During the same period, PowerHouse entered into a joint venture with Provident Data Centers for a similar project in Grand Prairie, Texas, set to become one of the largest data center campuses in Texas.
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