Transforming Pittsburgh's Old Steel Mills into an AI Hub.

Saturday, Jul 12, 2025 5:31 am ET1min read

President Trump will visit Pittsburgh to promote a $2 billion plan to turn a closed steel mill site into a power plant and data centers to support artificial intelligence. The project aims to create an AI hub and support 3,000 jobs, a decade after Nippon Steel invested $2 billion to keep 3,000 steelworkers employed at a local U.S. Steel mill.

President Donald Trump is scheduled to visit Pittsburgh on July 15, 2025, to promote a $2 billion plan aimed at transforming a closed steel mill site into a power plant and data centers to support artificial intelligence. The project, which will create an AI hub, is expected to generate 3,000 jobs, a decade after Nippon Steel invested $2 billion to keep 3,000 steelworkers employed at a local U.S. Steel mill [2].

The initiative, which is part of the “Energy and Innovation Summit” at Carnegie Mellon University, seeks to showcase Pennsylvania's ability to "power the AI revolution" [1]. The state, the second-largest natural gas producer in the U.S., is positioning itself as a key player in the burgeoning AI-data center industry.

However, the use of natural gas to power energy-intensive data centers has raised concerns among environmental experts. The increased carbon emissions from natural gas could exacerbate climate change, according to Yury Dvorkin, associate professor of electrical and computer engineering at Johns Hopkins University [1]. The Department of Energy estimates that data center electricity use could nearly triple by 2028, from 4.4 percent of U.S. electric power use in 2023 to 12 percent in 2028 [1].

Shaolei Ren of the University of California, Riverside, noted that while some estimates are lower, the overall picture is clear: the demand for AI is growing, and so is the demand for data centers [1]. The energy required to power these data centers is a significant concern, as a large fraction of U.S. energy still comes from fossil fuels, contributing to a carbon footprint for AI models [1].

The project is part of a broader effort by Pennsylvania leaders to attract AI-data center investment. Governor Josh Shapiro has touted Amazon's $20 billion plan to build two data centers in the state, drawing some of its power from the state's electrical grid, where natural gas is the dominant energy source [1]. The state is offering millions of dollars in tax breaks to build these centers.

The $2 billion AI hub project, if successful, could significantly boost the state's economy and job market. However, it also raises questions about the environmental impact of using natural gas to power these data centers. The project will need to navigate these challenges while promoting the economic benefits of the AI industry.

References:
[1] https://www.alleghenyfront.org/pa-leaders-trump-to-meet-at-carnegie-mellon-about-natural-gas-and-data-centers-as-ai-threatens-to-worsen-climate-change/
[2] https://oilprice.com/Metals/Commodities/Nippon-Steel-Acquires-US-Steel-After-Prolonged-Battle.html

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