AI Data Centers Unprecedented Opportunity for Appalachia Manufacturers, New Report Finds

The AI revolution is driving demand for new data centers, which Appalachia’s small and medium-sized manufacturers can capitalize on, finds a new report

PITTSBURGH, PA, UNITED STATES, September 16, 2025 /EINPresswire.com/ -- The Artificial Intelligence (AI) revolution is driving demand for new data centers, which Appalachia’s small and medium-sized manufacturers can capitalize on, finds a new report from the Energy & Manufacturing in Appalachia (EMA) initiative. President Trump’s and Pennsylvania Governor Shapiro’s July visit to Pittsburgh showcased a $92 billion commitment by leading tech and finance companies in AI and energy projects in the region.

The EMA initiative is led by Catalyst Connection, southwestern Pennsylvania’s economic development organization, along with the following regional partners: Alliance for Manufacturing and Technology (AMT), Industrial Modernization Center, Magnet, Manufacturers Resource Center, MANTEC, Maryland MEP, Northeastern PA IRC, Northwestern PA IRC, Reimagine Appalachia, and West Virginia University.

“Few economic opportunities can match the potential that the rapid growth of AI data centers presents,” said Petra Mitchell, President and CEO of Catalyst Connection. “We stand ready to help Appalachia’s manufacturers be at the forefront of the AI revolution.”

AI Data Centers Becoming Critical Infrastructure

AI data centers vary by scale and function, ranging from hyperscale and enterprise facilities run by tech giants to colocation, edge, and cloud centers. AI data centers are critical infrastructure as demand for high-performance computing continues to soar —approximately 92 GW of data center capacity in the pipeline in the United States, 7 GW additions each month at the end of 2024.

AI queries consume 10 times more energy on average than traditional requests, creating infrastructure bottlenecks that are driving demand for power systems and energy-efficient components. Permitting delays, zoning restrictions, and public backlash against water and power use can slow construction, rewarding firms that proactively work to build community support.

Given these challenges, many traditional data center hubs are quickly becoming saturated, shifting growth toward rural regions in Pennsylvania, West Virginia, providing Appalachia’s manufacturers with a competitive advantage.
 
Policy Incentives and New Investments Address Surging Demand

In April, the Trump Administration issued an executive order (EO) to expedite coal-powered infrastructure to power AI data centers. Federal and state incentives and growing demand have led to unprecedented $92 billion in private-sector investments, including:
• Google, $25 billion for data centers and infrastructure, including a $3 billion deal with Brookfield Asset Management for hydropower electricity;
• Blackstone, $25 billion for data centers and natural gas plants;
• CoreWeave, $6 billion in data center expansion;
• Energy Capital Partners, $5 billion for data center development;
• And FirstEnergy, $15 billion for power infrastructure.

Report Provides Roadmap for Appalachia Manufacturers

The Appalachia region is already a leader in next-generation manufacturing, from precision metalwork and electrical assembly to HVAC and industrial automation, which can be readily retooled to support AI data center development. EMA’s AI Data Centers: Overview examines a diversified supply chain with opportunities across computing, power, cooling, security, and automation. This includes computing and racks, power and resilience, thermal management, controls and sensing, and connectivity and civil works, each a unique market opportunity for regional manufacturers. The report also provides resources for navigating permitting, zoning, water and power, and community outreach considerations essential to success. Appalachian manufacturers can visit EMA’s website for additional resources.

Read the full report

About Catalyst Connection

Catalyst Connection is a southwestern Pennsylvania economic development organization dedicated to serving manufacturers. For more than 35 years, Catalyst has operated with a focus on powering potential through delivering technical assistance and management consulting services and developing long-standing partnerships across the region. Catalyst maintains a deeply held commitment to modernizing manufacturing and enabling opportunity across business enterprises, individuals, and throughout communities.
Catalyst Connection is supported, in part, by the Pennsylvania Department of Community and Economic Development and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). As such, we are an affiliate of the Pennsylvania Industrial Resource Center (IRC) and the MEP National Network in southwestern Pennsylvania.
About the Energy & Manufacturing in Appalachia initiative

The Energy & Manufacturing in Appalachia (EMA) initiative provides technical assistance and business support to small and medium manufacturers and enterprises in 156 counties of Maryland, New York, Ohio, Pennsylvania, and West Virginia seeking to expand business, production and jobs in the energy supply chains or to be more energy efficient.

Allison Moux
Catalyst Connection
+1 412-918-4252
email us here
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