Prepared for Pennsylvania’s Construction Executives
Executive Summary
This week brought a major new Pennsylvania data-center construction announcement and several developments that reinforce the Commonwealth’s emerging industrial/power construction cycle.
The biggest story is Project Phoenix, a new 2-gigawatt data-center campus in Shippingport, Beaver County, announced with a groundbreaking on September 10. Aligned Data Centers says the three-facility campus could anchor approximately $10 billion in regional economic investment and support an estimated 3,000 construction jobs. Holder Construction and Kokosing are identified as construction partners.
Also important: Philips announced a $1.6 million expansion in Mifflin County, adding a production line for ultrasound transducers and creating 101 jobs, while GrafTech and Antora Energy announced a new collaboration in St. Marys involving thermal-battery materials and the restart of eight furnaces.
On the public-investment side, Gov. Josh Shapiro launched a nearly $100 million Chester revitalization initiative, including $75.5 million in Commonwealth investment for infrastructure, blight remediation and economic development.
The market data also continue to point toward a construction economy increasingly driven by nonresidential specialty trades, industrial facilities, data centers and power infrastructure. Nationally, construction added 22,000 jobs in August, with nonresidential specialty contractors accounting for the largest gain. Pennsylvania construction employment, however, was still down 0.8% year over year in July.
1. TOP STORY: 2-GW Project Phoenix Data Center Breaks Ground in Beaver County
The development
Aligned Data Centers announced September 10 the groundbreaking of Project Phoenix, a planned 2-gigawatt data-center campus in Shippingport, Pennsylvania.
The campus will consist of three facilities and is being developed at a legacy energy/industrial site.
Aligned estimates the development will anchor approximately $10 billion in regional economic investment. The company estimates approximately 3,000 construction jobs and 640 permanent jobs once the campus is operational.
Holder Construction and Kokosing are identified as construction partners.
Aligned Data Centers — Project Phoenix announcement
Why it matters to Pennsylvania contractors
This is the kind of project that can materially affect the Pennsylvania construction labor market.
A 2-GW campus requires far more than the data-center buildings themselves:
- Site preparation
- Excavation
- Concrete
- Structural work
- Electrical distribution
- High-voltage systems
- Mechanical systems
- Cooling infrastructure
- Water systems
- Roads
- Utilities
- Telecommunications
- Security
- Fire protection
- Commissioning
It also creates a large demand for project managers, superintendents and skilled craft workers.
KCA takeaway
Project Phoenix is particularly significant because it is being developed at a legacy energy site and is explicitly framed around Pennsylvania’s new responsible-data-center framework.
It provides a real-world test of whether the Commonwealth can attract very large AI infrastructure investments while addressing:
power + jobs + community concerns + environmental requirements.
2. Project Phoenix Reinforces the “Data Center + Power” Construction Model
Project Phoenix is especially noteworthy because it fits a broader Pennsylvania trend: large data centers are increasingly being paired with dedicated or expanded power infrastructure.
The PUC recently forecast statewide industrial electricity demand to grow an average 18.56% annually through 2030, with industrial electricity demand in PPL Electric’s territory projected to increase approximately 51% annually.
That means the opportunity created by AI isn’t limited to data-center shells.
It potentially extends to:
- Natural-gas generation
- Substations
- Transmission
- Distribution
- Switchgear
- Transformers
- Backup generation
- Electrical controls
- Gas infrastructure
- Civil construction
KCA perspective
Power infrastructure should be treated as a separate major construction market.
KCA members who do not traditionally pursue data centers may still find substantial opportunities in the infrastructure required to serve them.
3. Philips Announces $1.6 Million Mifflin County Expansion
Philips announced a $1.6 million expansion of its ultrasound manufacturing operation in Reedsville, Mifflin County.
The company will add another production line to increase manufacturing capacity for ultrasound transducers.
The expansion is expected to create 101 jobs over three years while retaining 518 existing positions.
Pennsylvania is providing $330,000 through a Pennsylvania First grant.
Pennsylvania DCED — Philips expansion
Why it matters
This is a good example of advanced manufacturing growth in central Pennsylvania.
The project is relatively small compared with Project Phoenix, but these types of expansions can generate work in:
- Electrical
- HVAC
- Process systems
- Production-line installation
- Building modifications
- Controls
- Equipment foundations
- Specialty mechanical work
KCA takeaway
KCA should continue tracking incremental expansions of existing industrial facilities. They can create a steady construction pipeline even when ground-up industrial development slows.
4. GrafTech + Antora Energy Target Thermal-Battery Manufacturing in St. Marys
GrafTech International and Antora Energy announced September 10 a strategic collaboration involving carbon-based materials for Antora’s thermal batteries.
The work will utilize GrafTech’s St. Marys, Pennsylvania facility. GrafTech has restarted eight bake furnaces as part of the collaboration and says the effort is already creating jobs, with approximately a dozen additional positions being recruited.
Why it matters
This is another signal that Pennsylvania’s legacy industrial base can be repurposed for emerging energy technologies.
Potential future construction opportunities could include:
- Furnace upgrades
- Process equipment
- Electrical systems
- Industrial HVAC
- Controls
- Energy systems
- Plant modernization
- Material-handling infrastructure
KCA takeaway
Energy-transition manufacturing is becoming another industrial sector worth tracking alongside data centers and traditional manufacturing.
5. Chester Launches Nearly $100 Million Revitalization Initiative
Gov. Shapiro announced September 10 a new public/private initiative to revitalize Chester.
The initiative represents approximately $97.1 million in total investment, including $75.5 million from the Commonwealth.
The funding will support:
- Road improvements
- Pedestrian infrastructure
- Blight remediation
- Public-space improvements
- Safety initiatives
- Economic development
Pennsylvania DCED — Chester revitalization initiative
Why it matters to contractors
This is an important public-sector construction pipeline story.
Revitalization programs can translate into contracts involving:
- Road construction
- Streetscapes
- Sidewalks
- Lighting
- Demolition
- Site remediation
- Public buildings
- Infrastructure
- Landscaping
- Utility work
KCA takeaway
The scale of this investment suggests Chester could become a meaningful construction market over the next several years, particularly for contractors in the Philadelphia/Delaware County region.
6. Public Infrastructure: New PennDOT Projects Continue Moving Toward Construction
PennDOT continues advancing multiple projects that could create future bidding opportunities.
A new public outreach period opened this week for the German Hill Road project in Forest County, a planned 7.2-mile resurfacing project scheduled for construction in 2027.
PennDOT is also advancing the Shelocta Truss Preservation project in Indiana County, with construction planned for June-August 2027.
In the southeast, the U.S. 1/U.S. 202 intersection improvements in Delaware County are scheduled for construction beginning September 2026 and continuing through 2028.
Why it matters
These projects demonstrate that the public infrastructure pipeline remains active even when private commercial construction is uneven.
7. Current Public Bid Opportunities
Several Pennsylvania opportunities were active or approaching deadlines this week.
Highridge Business Park
The Schuylkill Economic Development Corporation solicited bids for the Highridge Business Park project, including:
- Site grading
- Earthwork
- Stormwater
- Paving
- Curbs
- Sidewalks
- Landscaping
The bid deadline was September 9.
West Mifflin Borough Building ADA Improvements
The South Hills Area Council of Governments is soliciting bids for ADA door improvements at the West Mifflin Borough Building.
The project includes Section 3 requirements relating to lower-income residents and businesses.
Hopewell Furnace National Historic Site
The National Park Service is soliciting a small-business contractor for approximately 450 linear feet of commercial-grade chain-link fencing, gates and related site work at Hopewell Furnace National Historic Site in Berks County.
The response deadline is September 11.
Federal construction opportunity — Hopewell Furnace
KCA takeaway
These smaller public projects matter because they provide entry points for small and midsize contractors that may not be positioned to compete for billion-dollar industrial work.
8. Workforce: Construction Hiring Remains Strong Nationally
The latest August employment report provides an interesting signal.
The construction industry added 22,000 jobs nationally in August, bringing year-over-year construction employment growth to approximately 1.5%.
Within construction:
- Nonresidential specialty trades: +7,800
- Heavy/civil engineering: +4,400
- Nonresidential building: -1,800
Construction unemployment fell to 3.1%.
Why it matters
This data strongly supports what KCA members are seeing on the ground:
The strongest employment demand is concentrated in specialty and infrastructure trades.
That is consistent with the growth of:
- Data centers
- Power infrastructure
- Industrial facilities
- Manufacturing
- Healthcare
- Major infrastructure projects
9. Pennsylvania Construction Employment Remains Slightly Below Last Year
Pennsylvania’s July employment data show approximately 261,400 construction jobs, down 0.8% from July 2025.
The state’s overall unemployment rate was 3.9%.
Why it matters
The combination is important:
Pennsylvania construction employment: slightly down
Pennsylvania overall unemployment: very low
That creates a difficult labor-market environment for contractors.
Even if construction employment isn’t growing rapidly, companies still have to compete against other industries for available workers.
KCA takeaway
Workforce development remains one of the most important constraints on Pennsylvania’s ability to capitalize on the industrial/data-center construction boom.
10. Safety: Construction Fall-Protection Requirements Remain Under Review
OSHA published a September 1 Federal Register notice concerning its information collection requirements for construction fall-protection systems, practices and training. Public comments are being accepted as part of the federal review process.
Fall protection remains one of OSHA’s central construction-safety priorities, with falls continuing to be a leading cause of construction fatalities.
OSHA — Construction Safety Resources
Why it matters
KCA contractors should continue to monitor federal OSHA activity involving:
- Fall protection
- Training
- Recordkeeping
- Respiratory protection
- Heat exposure
- Silica
Even when a rule is not immediately changing, OSHA’s information-collection and enforcement priorities can signal where compliance attention is headed.
11. Safety Training Opportunity: OSHA Machine Guarding
Pennsylvania’s Business One-Stop Shop is promoting a free OSHA machine-guarding webinar for September 17 covering:
- Hazard identification
- Point-of-operation guarding
- Lockout/tagout
- Safeguarding methods
- OSHA requirements
The training is being presented with participation from the federal OSHA Erie Area Office and Pennsylvania OSHA Consultation Program.
Pennsylvania OSHA Machine Guarding Training
KCA takeaway
While machine guarding is more directly applicable to manufacturing, it is increasingly relevant to contractors working inside advanced manufacturing facilities where construction and plant operations overlap.
12. Market Trend: The Construction Economy Is Becoming More Specialized
This week’s developments point to a clear structural trend.
Pennsylvania’s strongest construction opportunities are increasingly concentrated around:
AI & Data Infrastructure
Project Phoenix and other large campuses.
Power
Generation, transmission, substations and distribution.
Advanced Manufacturing
Philips, GrafTech/Antora and other specialized industrial facilities.
Healthcare
Medical manufacturing and healthcare facilities.
Public Infrastructure
Roads, bridges, utilities and municipal revitalization.
Meanwhile, national construction data show that nonresidential specialty contractors are doing much of the hiring.
KCA implication
This creates a strong argument for Pennsylvania contractors to invest in:
- Skilled-trade recruitment
- Apprenticeship programs
- Cross-training
- Specialty capabilities
- Project-management capacity
- Safety systems
- Workforce partnerships
KCA MARKET SCORECARD
| Sector | Current Outlook | KCA Assessment |
|---|---|---|
| Data Centers | 🟢 Very Strong | Huge pipeline; permitting remains key |
| Power/Energy | 🟢 Very Strong | Major secondary opportunity from AI |
| Advanced Manufacturing | 🟢 Strong | Growing throughout PA |
| Healthcare | 🟢 Strong | Continued institutional investment |
| Higher Education | 🟢 Stable | Renovation/capital pipeline |
| Public Infrastructure | 🟢 Strong | Significant project flow |
| Adaptive Reuse | 🟡 Growing | Opportunity in obsolete properties |
| Traditional Office | 🔴 Challenged | Continue to monitor |
| Skilled Labor | 🔴 Constrained | Major limiting factor |
| Construction Costs | 🟡 Watch | Energy/material volatility |
KCA’s 5 Things to Watch Next
1. Project Phoenix Construction Activity
This is the most important new project to follow.
KCA should track:
- Subcontractor opportunities
- Local hiring
- Apprenticeship participation
- Project phases
- Electrical/mechanical packages
- Site infrastructure
- Power-generation work
The project’s estimated 3,000 construction jobs could make it one of the largest workforce-demand projects in Western Pennsylvania.
2. How Pennsylvania’s GRID Rules Work in Practice
Project Phoenix will be an important case study.
Watch how the new requirements affect:
- Permitting
- Local approvals
- Power commitments
- Community benefits
- Workforce requirements
- Project schedules
3. The Power Infrastructure Pipeline
The PUC’s electricity forecast suggests the next major Pennsylvania construction boom could involve power infrastructure as much as buildings.
KCA should watch for announcements involving:
- New generation
- Substations
- Transmission
- Natural gas
- Grid upgrades
- Battery storage
4. Industrial Expansions
Philips and GrafTech/Antora demonstrate that Pennsylvania’s existing industrial base is continuing to attract new investment.
KCA should watch for more projects involving:
food + medical technology + energy technology + advanced manufacturing.
5. Workforce Capacity
The construction industry is adding jobs nationally while unemployment remains low.
The biggest question isn’t simply:
How much construction is coming?
It’s:
Does Pennsylvania have enough skilled workers to build it?
That makes apprenticeship, CTE, pre-apprenticeship and construction career promotion increasingly important to Pennsylvania’s economic-development strategy.
Bottom Line
This was a very significant week for Pennsylvania’s commercial construction outlook.
The 2-GW Project Phoenix groundbreaking in Beaver County is the headline, but the broader story is even more important: Pennsylvania is becoming a major destination for AI infrastructure, power investment and advanced manufacturing.
At the same time, Philips’ expansion, GrafTech/Antora’s industrial collaboration and Chester’s nearly $100 million revitalization initiative show that construction opportunities are developing well beyond data centers.
For KCA members, the opportunity is substantial—but so is the challenge.
The Commonwealth will need the contractors, skilled tradespeople, apprentices and specialty subcontractors capable of turning this investment pipeline into actual projects.
That makes workforce development, apprenticeship capacity, predictable permitting and infrastructure investment the four issues KCA should keep at the center of its agenda heading into the fall.
Building Pennsylvania 