Pennsylvania small businesses are paying for the AI data center boom

A new report says Pennsylvania households and businesses are absorbing steep electricity costs from data center growth, with small businesses among the hardest hit. The study argues state policy can shift more of those grid-expansion costs onto the projects driving them while keeping AI infrastructure development moving.

Why it matters: - Pennsylvania households and businesses are now paying $78.3 million more per month for electricity, or nearly $1 billion a year. - The report says much of that increase is tied to grid infrastructure needed for the state's fast-growing data center industry. - Small and medium-sized businesses could face higher operating costs and weaker competitiveness if electricity prices keep rising. - Rural and agricultural counties are already seeing some of the sharpest increases.

What happened: - The Pennsylvania Sustainable Business Network, the American Sustainable Business Network and Compound Impact Collective released "Energy Affordability for Pennsylvania's Small Businesses: Data Centers & Energy Choices in the AI Era" on Aug. 18, 2026. - The report examines how grid expansion for AI infrastructure is shifting costs onto Pennsylvania ratepayers. - The report also lays out policy options for lawmakers and local governments.

The details: - Capacity market prices in PJM Interconnection rose 833% for the 2025-2026 delivery year. - Data centers accounted for roughly 63% of that increase. - Ratepayers covered about 95% of data center grid connections under current cost-allocation rules, according to the Union of Concerned Scientists. - That covers 124 of 130 projects in the PJM region in 2024. - Pennsylvania business electricity bills are projected to rise by up to 29% because of the PJM surge. - Nearly a quarter of Pennsylvanians could not afford their energy bill at least once in 2025. - Tioga County electricity prices rose 58% within the year. - The report says Pennsylvania has stronger policy tools than many states, including the Office of Small Business Advocate and a model community benefit agreement for data center accountability, clean energy and economic development opportunities. - Pennsylvania lawmakers have advanced House Bill 1834 and House Bill 2650 with bipartisan support to regulate data centers and protect ratepayers. - The report recommends transparency requirements, community input on standards and ongoing participation and oversight by ratepayers, including small business owners. - The report points to Pennsylvania's negotiated partnership approach, including what it calls the nation's first publicly documented data center community benefit agreement, instead of the moratoriums some other states are adopting. - The full report is available here through the webinar registration page. - Press members can request a copy of the full report by contacting Anayana White at anayana@asbnetwork.org.

Between the lines: - The report frames data center growth as a test of whether AI infrastructure costs should stay socialized across ratepayers or be pushed more directly onto the projects driving demand. - The authors are arguing for more public oversight, not a halt to data center development. - The message is aimed at small businesses that want AI-related investment but do not want to subsidize it through higher utility bills.

What's next: - PASBN, ASBN and Compound Impact Collective will host a public webinar on Aug. 26, 2026, at 1 PM ET. - The webinar, "Who Pays for the AI Boom? Inside Energy Affordability for Pennsylvania's Small Businesses," will feature the report's lead researcher and other speakers. - Policymakers are expected to weigh the report's recommendations as data center regulation advances in Pennsylvania.