Pennsylvania Wants Data Centers to Pay Their Own Way. There’s a Better Way to Do It.

Originally published by RealClear Energy.

Lawmakers in both parties are scrambling to address the issues revealed by data centers. President Donald Trump, his administration officials, and several governors (including Pennsylvania Gov. Josh Shapiro) signed on to a statement of principles that encourage data centers to bring their own power or pay for the power they need.

But officials should also champion specific state legislative reforms that could keep Pennsylvania growing without compromising grid reliability or affordable electricity. By creating room for innovation in the electricity industry, Pennsylvania’s industrial powerhouse could be unleashed just as the rest of the grid gets tight.

Pennsylvanians are worried that the artificial intelligence boom will drive up electricity bills, and for good reason. Data centers accounted for an estimated 63 percent of the increase in electric capacity demand across the PJM Interconnection between 2025 and 2026, contributing to billions of dollars in additional costs across the region. PECO (formerly Philadelphia Electric Company) recently sought a 13 percent rate increase.

Read more at RealClear Energy.