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Pennsylvania gets a big score in the “Backyard Brawl”

It’s almost indescribable, the sensation of watching your college football rival take the opening kickoff, march down the field and score on the opening drive of the game. It is akin to being punched in the gut, made worse by watching your rival’s fans celebrate the achievement at your team’s expense.

On Wednesday, President Trump, flanked by tech and energy industry leaders, announced more than $90 billion in new investments in Pennsylvania, including the construction of data centers necessary to power artificial intelligence.

Here in West Virginia, the news was received with about the same enthusiasm as Pitt connecting on a fade pass to the back of the end zone.

During his inaugural address, Gov. Patrick Morrisey announced he was launching an “Economic Backyard Brawl,” his administration’s strategy to compete with surrounding states. The plan included simplifying the tax code, cutting red tape, and establishing West Virginia as one of the easiest states in which to do business.

The governor has made multiple announcements that are in line with his strategy including a “One-Stop Shop” permitting program for companies looking to do business in West Virginia and the Power Generation and Consumption Act, creating a certified microgrid program, meant to use this state’s natural resources to power data centers. There have been other economic development announcements around the state but they pale in comparison to the news out of Pittsburgh on Wednesday.

Pennsylvania scored a touchdown and converted the two-point conversion, taking the lead in the “Economic Backyard Brawl.”

But why Pennsylvania? What sets it apart from West Virginia?

In many ways, not much.

Much of Pennsylvania is located in Appalachia. Western Pennsylvania residents share characteristics common in West Virginia. They live in blue-collar towns that were built on the steel industry and were left trying to rebuild when the mills closed and the jobs disappeared.

One of the sites chosen for investment is an old steel mill in Aliquippa. The mill that once employed over 13,000 people has been gone for years but now there are plans to redevelop the site into a power plant and data centers to support AI.

Aliquippa is no different than Weirton where over 13,000 people once worked at Weirton Steel’s sprawling complex along the Ohio River. Now, much of the former Weirton Steel site is empty.  The mill has been demolished and the location is waiting for the sort of development planned for just upriver.

Pennsylvania has abundant natural resources to power AI development, but so does West Virginia. In 2023, West Virginia produced 88 million tons of coal and 3.2 trillion cubic feet of natural gas. Both ranked in the top four in the country.

So what does Pennsylvania have? There is its obvious political importance. Pennsylvania and its 19 electoral votes were key to getting Donald Trump elected to the White House in 2016 and 2024. The same can be said for President Joe Biden in 2020.

Beyond that, there is bipartisan support to be a key player in the AI race. The Wall Street Journal reported that Republican Sen. Dave McCormick conceived of the tech summit, where the investments were announced, as a way to catch up with other regions in the “data-center arms race.” Democrat Gov. Josh Shapiro has also promoted bringing data centers to other parts of the state.

West Virginia is certainly not out of the game. The AI race is just beginning. By 2030, global investments in the development of data centers are expected to reach $6.7 trillion dollars and the energy demand is expected to double.

West Virginia can still win the “Economic Backyard Brawl.” For now, we’re forced to sit and watch the fans on the other side of the field, or in this case, the other side of the border, celebrate their touchdown.

 





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