Pennsylvania report warns small businesses may subsidize AI data centers through higher power bills

A report from the Pennsylvania Sustainable Business Network, cited by WESA, warns that small businesses in Pennsylvania may face significantly higher electricity costs due to the increasing number of AI data centers in the state. According to Michael Jarrett, the lead researcher, even a 10% increase in annual energy costs could negatively impact small employers' ability to hire, grow, or simply stay afloat.

The report highlights that nearly half of Pennsylvania's private-sector workforce is employed by small businesses, which are particularly vulnerable to rising utility prices. A Voice of Main Street poll mentioned in the report found that 81% of small business owners nationwide experienced increased utility bills, leading many to raise prices or freeze hiring. The report also notes expected 10-20% increases in residential electricity bills and up to 29% for businesses due to PJM Interconnection capacity costs.

In response to these concerns, the report's authors endorsed Gov. Josh Shapiro's Governor's Responsible Infrastructure Development (GRID) standards, designed to maintain energy affordability and encourage community involvement in data center projects. They also called for communities to negotiate benefit agreements with developers and suggested expanding the Pennsylvania Office of Small Business Advocate to include small businesses in these critical conversations. Additional recommendations include utility bill aid, tax credits for energy costs, and broader energy efficiency grants to mitigate the financial burden on small enterprises.