Compute Institute
Ratings for the physical buildout of AI

Jurisdiction Index / US — Pennsylvania (PJM)

US — Pennsylvania (PJM)

Tier 2 · Competitive
Positive
Rank #15 of 31
Data confidence B
60.4 /100

JCI composite · as of · methodology v0

US — Pennsylvania (PJM) scores 60.4/100 on the Compute Institute Jurisdiction Competitiveness Index (Tier 2, Competitive), ranking #15 of 31 rated jurisdictions with a positive outlook, as of June 25, 2026 under methodology v0. Its strongest dimension is Stability & Execution Risk at 8.4/10; its weakest is Power Availability & Deliverability at 3.8/10. 17 of 22 sub-factors are scored on E1–E2 evidence (data confidence B). The positive outlook is driven by 5 forward-looking signals (+0.93 net points, E3–E4 evidence): permitting regime (E3), observed construction velocity (E3), labor & supply capacity (E3), ecosystem (E3) and physical & geopolitical risk (E3).

Dimension breakdown

Seven dimensions, each 0–10, weighted per methodology v0. JCI = Σ(dimension × weight) × 10.

Power Availability & Deliverability

3.8 /10 weight 20%

Power Cost

4.3 /10 weight 12.5%

Speed to Build

Not scored weight 17.5%

Regulatory & AI Policy Environment

6.7 /10 weight 12.5%

Fiscal & Incentives

7.2 /10 weight 10%

Capital & Ecosystem Depth

7 /10 weight 12.5%

Stability & Execution Risk

8.4 /10 weight 15%

Outlook drivers — Positive (+0.93 net points)

Forward-looking E3–E4 signals. They move the outlook only — never the base score.

  • Permitting regime
    E3
    +0.35 pts as of
    “PA permitting is 'managed,' not fast-track. The Homer City brownfield coal-to-gas conversion received PA DEP air-quality plan approval on Nov ~18-20, 2025, clearing site prep for a ~4.4 GW campus — a workable but multi-step environmental process, not the ~18mo greenfield ideal. PA has NO DC-specific permitting/tax incentive (unlike TX/VA/AZ) and an ~8.99% CIT, so no statutory acceleration. Institutions are stable (US rule of law, no judicial blocking of state permits). The real chokepoint is federal FERC/PJM interconnection rather than state permitting, so state regime alone lands mid-range. Evidence E3 (press reporting the DEP permit; PA DEP primary docket not directly fetched). VERIFICATION: The cited DataCenterDynamics URL does NOT mention the DEP air-quality approval or the Nov 2025 date (it confirms Homer City brownfield, Kiewit EPC, 4.4-4.5 GW campus, 2027 ops); the permit fact is independently confirmed via BusinessWire/Homer City Redevelopment press release (~Nov 20, 2025) and is contested on appeal by Clean Air Council/PennFuture/Sierra Club — fact holds, source attribution is imperfect, E3 retained, score unchanged.”

    Source: DataCenterDynamics / Homer City Redevelopment — PA DEP air-quality plan approval ~Nov 20, 2025 (www.datacenterdynamics.com)

  • Observed construction velocity
    E3
    -0.92 pts as of
    “The binding velocity constraint is the PJM interconnection queue: average application-to-commercial-operation has risen from <2 years (2008) to OVER 8 YEARS (2025), with ~30,000 MW still in the transition queue to be processed in 2026. The flagship AWS/Talen Susquehanna load expansion was actually BLOCKED by FERC (Nov 1, 2024) for cost-shift/reliability reasons and had to be restructured into a front-of-meter PPA in June 2025 — direct evidence that fast greenfield grid connection is not available. Developers route around this via brownfield repowering (Homer City ~5-year build on an existing plant; Talen's existing 2.5 GW nuclear), which is faster than de novo but still multi-year. This is materially slower than the '12-18mo typical' (=5) anchor, hence ~3.5. Evidence E3 (queue timeline via PJM/press; FERC ruling is regulatory primary). VERIFICATION: Utility Dive URL CONFIRMS the FERC rejection (Nov 1, 2024) and the ~$140M cost-shift concern, but does NOT contain the '8+ year queue' or '30,000 MW transition queue' figures attributed to it; those are independently confirmed via PJM/RMI 2026 reporting (<2yr 2008 → 8+yr 2025; 30,000 MW remaining for 2026 processing) — both facts hold, source attribution imperfect, evidence honestly E3 (not E1), score unchanged.”

    Source: Utility Dive — FERC rejects Talen-Amazon interconnection (Nov 1 2024); PJM 8+yr queue per separate PJM/RMI reporting (www.utilitydive.com)

  • Labor & supply capacity
    E3
    +0.00 pts as of
    “PA Dept. of Labor & Industry projects a shortfall of 300,000+ skilled trade workers by 2030, layered on a national data-center construction labor crunch (ABC: ~439,000-worker shortage in 2025, projected 349K-499K additional needed by 2026; ~11-month average contractor backlogs; DC roles paying ~30% wage premiums that poach trades). This is meaningful scarcity, not acute collapse: PA retains a deep legacy industrial/EPC and power-plant workforce and union building trades, and Tier-1 EPCs (e.g., Kiewit at Homer City) are committing to multi-GW PA builds — evidence the labor base can be mobilized for marquee projects even if broad trades depth is thin. Net mid-range, scarcity-leaning. Evidence E3 (PA L&I figure via press; ABC trade-association data). VERIFICATION: The cited LVB URL DIRECTLY supports the '300,000+ skilled trade workers by 2030' figure attributed to the PA Department of Labor & Industry — fully supported, E3 retained, score unchanged.”

    Source: Lehigh Valley Business / PA Dept. of Labor & Industry — 300K+ skilled-trades shortfall by 2030 (lvb.com)

  • Ecosystem
    E3
    +0.38 pts as of
    “PA is an emerging, fast-growing secondary DC market — NOT the largest (the 10-anchor). CBRE (H2 2025) confirms Northern Virginia remains the largest US market (4,039.6 MW inventory, 37% YoY growth, 0.5% vacancy — lowest among primary US markets), with Pennsylvania cited among emerging markets drawing investor/hyperscaler interest for abundant land, flexible permitting, and easier power access. PA does anchor a top-tier hyperscaler (AWS/Amazon $20B, Susquehanna nuclear) and sits in the dense PJM/fiber corridor (with attendant PJM capacity-price cost exposure), but it does not host all hyperscalers and is far from the largest market. Strong power-led pipeline and at least one anchor hyperscaler, mid-density ecosystem, clearly secondary-tier → 6. VERIFICATION: URL live; NoVA figures (4,039.6 MW / 37% YoY / 0.5% vacancy) confirmed verbatim — justification's '~4,040 MW' is accurate. Correction: CBRE groups PA with Nevada and Michigan (not 'Ohio, Michigan, Texas'), and the 'gigawatt sites' phrasing is not in this release; these are factual edits that do NOT change the secondary-tier conclusion. CBRE is a commercial brokerage → E3 is correct. Score 6 holds.”

    Source: CBRE H2 2025 — US operational rankings (Phoenix #5, 807.3 MW); Northern Virginia largest market (www.cbre.com)

  • Physical & geopolitical risk
    E3
    +1.12 pts as of
    “Pennsylvania is an inland Mid-Atlantic state with no active conflict, no coastal-hurricane storm-surge exposure, and no significant seismic zone; its FEMA NRI hazard profile is dominated by riverine/inland flooding and winter weather — well-characterized, insurable, and far from a disaster-zone anchor. Crucially for a data-center jurisdiction, PA has strong energy/physical security: EIA confirms it was the 3rd-largest US net electricity generator at 241,498,648 MWh in 2024, anchored by the Susquehanna nuclear plant supplying the AWS deal — i.e., abundant in-state baseload rather than import-dependent. The deduction from a 9-10 reflects genuine residual riverine flood and ice-storm exposure and PJM regional grid-adequacy strain (capacity auctions clearing at the price cap on data-center-driven load growth), not weather catastrophe risk. The energy-security generation figure is E1 (EIA); the FEMA NRI hazard characterization for PA is an anchored assessment from FEMA's published methodology rather than a fetched state-level NRI score, so this is honestly E3. VERIFICATION: EIA source re-fetched and confirms 241,498,648 MWh (rank 3rd, 2024); however the cited EIA page does NOT substantiate the original 'top US electricity-export state' claim — that phrase has been REMOVED as unverified by the source. FEMA NRI characterization remains unfetched (methodology-based), so E3 is retained and score 8 upheld.”

    Source: EIA — Pennsylvania Electricity Profile 2024 (www.eia.gov)

Sub-factor scores and sources

Every base-scored input below carries E1–E2 evidence: a justification, an evidence-level grade, and a link to the underlying source document.

Power Availability & Deliverability — 3.8/10 (weight 20%)

Sub-factor
Score
Justification
Evidence
Source
Grid headroom 40% of dimension 3.5 /10 Pennsylvania sits in PJM, where headroom for new large load is constrained but not under moratorium. PJM utilities have collectively committed to serve roughly TWICE as much new large-load demand as the region has planned new generation to support (forecast peak +5,250 MW for 202... as of
E1
PJM Inside Lines (2027/2028 BRA: 134,479 MW, cap $333.44/MW-day, +5,100 MW data centers) + Wood Mackenzie (utilities committed to 2x planned generation) insidelines.pjm.com
Time-to-power 35% of dimension 1.5 /10 Per PJM, the average time from interconnection application to commercial operation has risen from under 2 years in 2008 to OVER 8 YEARS in 2025. That places typical grid-tied energization at the anchor's '0 = >6yr' floor. It is not a flat 0 because the reformed process now target... as of
E1
PJM Inside Lines / RMI 'Speed to Power' (interconnection timeline >8 years in 2025; ~63 GW transition queue free to proceed) insidelines.pjm.com
Energy mix & expandability 15% of dimension 7 /10 Firm generation pipeline is strong: Pennsylvania is the #1 net electricity exporter (est. 87 million MWh exported in 2024, nearly double the #2 state), with natural gas at ~59% of in-state generation (2023, Marcellus-fed) and ranking among the top nuclear states at 32% share (202... as of
E1
Utility Dive / Talen 8-K (FERC Nov 2024 ISA rejection; June 2025 1,920 MW front-of-the-meter restructure; FERC Dec 18 2025 co-location order) + EIA PA profile www.utilitydive.com
Water availability 10% of dimension 8 /10 Water is abundant relative to arid Western DC markets. Pennsylvania's data-center load concentrates in the humid, water-rich Susquehanna River Basin. The SRBC regulates withdrawals, has issued only ONE hyperscale permit in the basin as of early 2026 (the AWS Salem Township campus... as of
E2
Susquehanna River Basin Commission - Data Centers & Water Use (Resolution 2025-03 dry cooling; AWS Salem Twp = sole hyperscale permit; case-by-case approval) www.srbc.gov

Power Cost — 4.3/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
Industrial electricity price 60% of dimension 4.2 /10 EIA Electric Power Monthly Table 5.6.A (data through April 2026) puts Pennsylvania's average INDUSTRIAL retail electricity price at 9.82 cents/kWh = ~$98.2/MWh all-in, vs the US industrial average of 8.66 cents/kWh ($86.6/MWh) — PA runs ~13% above the national industrial average.... as of
E1
EIA Electric Power Monthly, Table 5.6.A www.eia.gov
Price trajectory & exposure 25% of dimension 3 /10 PA sits entirely in PJM, which is acutely capacity-cost exposed. The 2026/2027 Base Residual Auction cleared at the FERC-approved cap of $329.17/MW-day (UCAP) for the whole RTO — up sharply from $269.92/MW-day the prior year — and the 2027/2028 BRA (Dec 2025) hit the cap AGAIN at... as of
E1
PJM 2026/2027 BRA Report (Jul 2025) & 2027/2028 BRA Report (Dec 2025) www.pjm.com
Cost certainty / contractability 15% of dimension 7 /10 Direct primary evidence that long-dated fixed power contracts are contractable in PA: Talen Energy and AWS signed a 17-year, ~$18B PPA for up to 1,920 MW of carbon-free output from the 2.5-GW Susquehanna nuclear plant (term to 2042, with extension option), restructured into a gri... as of
E2
Talen Energy press release / SEC 8-K: Talen Energy Expands Nuclear Energy Relationship with Amazon (Jun 11, 2025) ir.talenenergy.com

Speed to Build (weight 17.5%)

Sub-factor
Score
Justification
Evidence
Source
Permitting regime 40% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.
Observed construction velocity 35% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.
Labor & supply capacity 25% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.

Regulatory & AI Policy Environment — 6.7/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
AI-specific law in force 35% of dimension 7 /10 Pennsylvania has NO comprehensive or restrictive AI statute in force as of mid-2026 — a permissive vacuum that favors AI/data-center development. Governor Shapiro's June 2026 AI actions are executive tools, not binding restrictions: an AI Literacy Toolkit, an AI Enforcement Task... as of
E1
Commonwealth of Pennsylvania — Governor Shapiro AI press release (Jun 2026) www.pa.gov
DC-specific regulation 35% of dimension 6 /10 Pennsylvania DOES have a DC-specific incentive: a 25-year sales-and-use tax exemption for qualifying data-center equipment under Act 84 of 2016 as amended by Act 13 of 2019 and Act 25 of 2021. Thresholds: $75M investment + 25 FTE jobs (counties <=250k pop) or $100M + 45 jobs (lar... as of
E1
Server Country — Pennsylvania Data Center Policy (Act 84/13/25 exemption; Nov 2025 PUC Tentative Order) servercountry.org
Regulatory predictability 30% of dimension 7 /10 Pennsylvania inherits high US institutional quality: strong rule of law, independent courts, USD reserve currency, no expropriation or retroactive reversals. No retroactive policy reversals on data-center or AI investment have occurred; the Act 84/13/25 tax exemption is a stable... as of
E2
World Bank — Worldwide Governance Indicators, Rule of Law Percentile Rank (figure unconfirmed at source URL; JS-gated portal) data.worldbank.org

Fiscal & Incentives — 7.2/10 (weight 10%)

Sub-factor
Score
Justification
Evidence
Source
Enacted incentives 40% of dimension 9 /10 Contrary to the assumption that PA has no DC-specific incentive, Pennsylvania DOES have an enacted, DC-specific Computer Data Center Equipment Program: a full sales-and-use-tax exemption on computer data center equipment 'sold to, used, or consumed in a certified data center,' au... as of
E1
PA Department of Revenue — Computer Data Center Equipment Program www.pa.gov
Headline tax burden 40% of dimension 5 /10 Pennsylvania's Corporate Net Income Tax (CNIT) is officially 7.49% for tax year 2026 per the PA Department of Revenue, mid-way through a statutory phase-down (Act 53 of 2022) from a former 9.99% to 4.99% by 2031 (2027: 6.99%, 2028: 6.49%, 2029: 5.99%, 2030: 5.49%). Combined with... as of
E1
PA Department of Revenue — Corporation Tax Rates www.pa.gov
Incentive durability 20% of dimension 8 /10 The exemption is structurally durable: each certified owner/operator receives up to 25 full calendar years of exemption from the year of certification, and the authorizing statute (Act 84/2016 as amended by Act 25/2021) carries no program sunset date — so a center certified today... as of
E2
WHYY — How PA lawmakers are responding to data centers (HB2198 / HB2153) whyy.org

Capital & Ecosystem Depth — 7/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
Committed capital 40% of dimension 10 /10 Committed/financed DC capex in PA vastly exceeds the $10B+ anchor. Governor's office and PA DCED (E1 govt primary) confirm Amazon's committed 'at least $20 billion' AI-infrastructure investment (June 9, 2025) — described at source as 'the largest private sector investment in the... as of
E1
PA DCED — Gov. Shapiro Announces Amazon Plans to Invest $20 Billion in Pennsylvania for AI Infrastructure dced.pa.gov
Ecosystem 30% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.
Sovereign/anchor capital availability 30% of dimension 3 /10 There is NO Pennsylvania state co-investment vehicle (no sovereign-wealth-style equity fund co-investing in DC capex), so the top anchor (10=state co-investment vehicle) is not met. The state's support is indirect fiscal incentive, not co-invested capital: the Computer Data Cente... as of
E1
PA Department of Revenue — Computer Data Center Equipment Program www.pa.gov

Stability & Execution Risk — 8.4/10 (weight 15%)

Sub-factor
Score
Justification
Evidence
Source
Political/policy continuity 40% of dimension 7 /10 Stable US/Commonwealth institutions with no expropriation or reversal risk, and the policy trend is actually improving: the PA Dept of Revenue confirms the Corporate Net Income Tax is phasing DOWN from 7.49% in 2026 to 4.99% by 2031 (Act 45 of 2025 accelerated the original Act 53... as of
E1
PA Department of Revenue — Corporate Net Income Tax www.pa.gov
Currency, transfer & convertibility 35% of dimension 10 /10 Pennsylvania transacts entirely in US dollars — a fully convertible reserve currency with no capital controls, no transfer restrictions, and no convertibility or sovereign-default risk relevant to a US state. This is corroborated by normal-functioning dollar-denominated electrici... as of
E1
EIA — Pennsylvania Electricity Profile 2024 www.eia.gov
Physical & geopolitical risk 25% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.

Signals

Recent ingested source documents linked to this jurisdiction via extracted claims or triage mentions, newest first.

  1. · Inside Climate News · relevance 0.20

  2. · Data Center Dynamics · relevance 0.85

  3. · Data Center Dynamics · relevance 0.15

  4. · Area Development — News · relevance 0.00

  5. · Area Development — News · relevance 0.20

  6. · Data Center Dynamics · relevance 0.65

  7. · PJM Inside Lines · relevance 0.60

  8. · Site Selection · relevance 0.30

  9. · Area Development — News · relevance 0.00

  10. · The Conversation · relevance 0.70

Scores are reproducible from the frozen inputs snapshot recorded at computation time (2026-06-25T20:22:16+00:00). See the full methodology for rubrics, weights, and the evidence ladder.