Google Cloud is spearheading a massive $25 billion expansion of data center and AI infrastructure across the PJM Interconnection power grid—spanning 13 U.S. states—over the next two years. The commitment, announced at the Pennsylvania Energy and Innovation Summit hosted by Senator Dave McCormick and attended by President Donald Trump, comes alongside a plan to invest $3 billion to modernize two hydropower plants in Pennsylvania.

These investments form part of a nationwide surge: on the same stage, Blackstone revealed a matching $25 billion to build out AI-focused data centers in Northeast Pennsylvania, with natural gas power sources co-located to ensure reliable electricity delivery. Additionally, CoreWeave committed $6 billion for a state-of-the-art AI facility in Lancaster, and AWS reaffirmed its $20 billion pledge in the region supporting its Stargate infrastructure initiative. Altogether, these developments represent over $90 billion in new AI and energy investments in Pennsylvania.

Google and Blackstone’s decisions highlight a growing strategy among hyperscalers: investing heavily in AI-optimized data centers that are co-located with power generation sources—be it hydropower, natural gas, or even nuclear—aimed at solving both the compute and energy bottlenecks of AI operations.

For Google, this initiative builds on earlier infrastructure investments. The company spent $17.2 billion in the first quarter of 2025 alone on servers and data center capacity, and it plans to increase overall capital expenditure to approximately $75 billion for the year. Similar commitments from AWS and Microsoft—who are investing $30–35 billion in U.S. data centers—underscore a hyped “AI arms race” in infrastructure buildout .

Google’s $25 billion commitment is central to addressing intensifying demand for cloud compute and AI services across the PJM power grid. The funding will support the launch of AI Works for America—an initiative aimed at expanding AI skills training—and infrastructure upgrades like hydropower modernization, nuclear pilot projects with Westinghouse Electric, and grid resilience enhancements.

This expansion has broader policy significance: while it ushers in economic growth—by creating construction and tech jobs—it also responds to national competitiveness goals. These drawline investments are linked to strategic energy policy and executive initiatives supporting AI infrastructure as foundational to the nation’s technological leadership.