CoreWeave’s multibillion-dollar push into central Pennsylvania is becoming a case study for how the AI economy is reshaping how data centers get built in the United States, a topic of immense interest to both Republicans and Democrats on Capitol Hill. The Reporter has covered how companies are working with local communities to navigate concerns around the rapid expansion of data centers. Retired Sen. Kyrsten Sinema (I., Ariz.), a featured columnist for the Reporter, published an op-ed making the case that data centers can be net benefits for communities.
The company is investing roughly $6 billion to convert former industrial space into high-capacity data center infrastructure, part of a broader race to secure power and real estate to support artificial intelligence workloads. Local officials and executives discussed the project at a recent economic development meeting, emphasizing Lancaster’s access to large-scale power and existing industrial facilities. Of note, local officials showed significant for the project which will include millions in community investments, scholarship, and jobs for locals.
The focus on lowering electricity costs has drawn scrutiny from Congress and the Trump administration. President Trump signed an executive order that requires private developers to bear the costs of new power demand. And lawmakers on both sides of the aisle have pushed for legislation to lower electricity costs that come with increased demand from data centers.
CoreWeave’s approach reflects a shift away from traditional tech hubs toward regions that can support massive energy demand. “This is where the AI race hits the real world,” a Republican congressional aide told the Reporter. “Everyone supports building out AI infrastructure, but the question we’re hearing more and more is who is paying for the power and the grid upgrades.”
In Lancaster, company officials and local leaders have pointed to private investment in infrastructure and long-term power arrangements as part of the solution. That model, where developers absorb more of the upfront energy costs, may gain traction as policymakers weigh how to balance economic development with concerns about electricity prices.
Coreweave’s Lancaster project underscores what’s coming next: more data center development in rural regions, with strong partnerships between the localities and developers.
That debate is already starting to take shape in legislation. Sen. Tom Cotton (R., Ark.) and other Republicans have begun advancing proposals, including the DATA Act, aimed at ensuring that large-scale data center projects do not shift electricity costs onto existing ratepayers. The push reflects a growing view among GOP lawmakers that the U.S. should aggressively build out AI infrastructure in a way that protects consumers and lowers electricity costs.
