PA Environment Digest Blog: Gov. Shapiro: Major Utilities, Power Producers, Tech Companies, Experts Endorse Federal/Northeast PJM Governors’ Plan To Meet Surging A.I. Data Center Energy Demands

Wednesday, January 21, 2026

Gov. Shapiro: Major Utilities, Power Producers, Tech Companies, Experts Endorse Federal/Northeast PJM Governors’ Plan To Meet Surging A.I. Data Center Energy Demands - Will PJM Listen?

On January 21, Gov. Josh Shapiro announced a growing, broad coalition of major electric utilities, power producers, global technology companies, and leading energy experts is publicly backing a plan announced last week to reform PJM Interconnection practices to deal with the surging energy demands of A.I. data centers proposed by 13 governors from PJM states, and federal energy leaders-- but will PJM listen?

Last week, Governor Shapiro signed a Statement of Principles alongside a bipartisan group of governors, U.S. Secretary of Energy Chris Wright, and U.S. Secretary of the Interior Doug Burgum to advance a coordinated plan to fix PJM’s broken system, accelerate the construction of new energy generation, and protect families and businesses from escalating electricity prices. Read more here.

The Principles-- supported by every governor from the 13 PJM states-- build on years of leadership by Governor Shapiro, who has been sounding the alarm since early in his term that PJM’s failures would force Pennsylvanians to pay more while getting nothing in return.

The PJM Interconnection released this statement on January 16 in response to the proposal-- “PJM is reviewing the principles set forth by the White House and governors.

“The PJM Board’s decision, resulting from a multi-month stakeholder process on integrating large load addition [was released the same day as the White House/governors’ proposal. Read more here.]

“The Board has been deliberating on this issue since the end of that stakeholder process. We will work with our stakeholders to assess how the White House directive aligns with the Board’s decision.”

Support For Statement Of Principles

Voices from across the energy economy are echoing the warning raised by the White House/governors’ Statement of Principles and endorsing the plan as the clearest path forward.

Utilities and Power Producers

-- Exelon President and CEO Calvin Butler: “But the high energy supply costs our customers face demand long-term solutions. This is the kind of early action needed to move beyond 20th-century approaches and toward modern energy solutions that meet today’s demands. Exelon is continuing our all-of-the-above efforts in states to address the insufficient energy supply and increasing demand at the heart of high energy supply costs through utility-generated power.”

-- PPL President and Chief Executive Officer Vincent Sorgi: “We continue to believe that whoever is able and willing to build new generation should be encouraged to do so. And at PPL, we are absolutely willing and able to be part of the solution.”

-- Talen Energy CEO Mac McFarland: “Not surprisingly, Friday’s announcement calls for large load customers to pay for this new generation. We agree with most observers that the costs of electricity should be paid by those that use the electricity. Electricity should be affordable and reliable for household consumers. The mechanisms for allocating these costs, however, need to be considered thoughtfully so they do not disincentivize the tremendous economic development that large loads, including data centers, can bring to our communities. We applaud the White House and Pennsylvania Gov. Josh Shapiro’s efforts in this area and think reasonable minds can find the right means to allocate burdens appropriately.”

Technology Companies

-- Microsoft Vice Chair and President Brad Smith: “Microsoft thanks President Trump and the governors for their leadership on this important issue, and we welcome the bipartisan effort to expand America’s energy generation capacity while protecting Americans from higher costs. This is a strong starting point, and we look forward to engaging with stakeholders as this important work moves forward.”

-- Google: “We agree data centers should pay their own way. For us, it is table stakes. When built responsibly, data centers can provide long-term, reliable demand that stimulates new investments in energy production and transmission in a way that helps all consumers.”

-- Amazon Chief Global Affairs and Legal Officer David Zapolsky: “[Amazon] is paying our full energy costs and is committed to ensuring our data centers don’t increase consumers’ electricity bills.”

Energy and Consumer Advocates and Experts

-- Vote Solar Mid-Atlantic Regional Director Elowyn Corby: “Holding data centers accountable and making them responsible for their own costs is a big step in the right direction… The Shapiro administration can and should point to the extension of the price cap that is part of this plan as a big win that honestly wouldn’t have happened without them.”

-- ITI Executive Vice President of Public Sector Gordon Bitko: “The tech industry remains committed to making investments to modernize the grid and working to offset costs for ratepayers as demand for digital and AI-powered services continues to grow.”

-- Advance Energy United CEO Heather O’Neill: “Advanced energy companies will be first in line to meet data center demand if this proposal is implemented in a way that’s fair and competitive. However, significant hurdles remain. We will never meet our growing energy needs until the grid operator PJM makes it easier for advanced energy projects to connect to the power grid.”

Extending Price Cap

If the price cap is implemented as proposed, the extended price cap would save more than 67 million consumers — including 13 million Pennsylvanians — within the PJM region approximately $27 billion over the next two years with $5 billion in Pennsylvania alone.

These savings would be in addition to the $18.2 billion already saved as a direct result of Governor Shapiro’s 2024 lawsuit.

Together, these reforms are designed to lower costs, strengthen reliability, and finally fix PJM’s broken process — allowing economic growth and data center development to continue without burdening ratepayers.

Click Here for Gov. Shapiro’s announcement.

Resource Links:

-- House Energy Committee To Consider Bill Giving PUC More Authority To Regulate A.I. Data Centers Jan. 26; Hearings On Related Bills Jan. 26 and Feb. 2 [PaEN]

-- Gov. Shapiro Secures Federal Support To Extend PJM Electric Generation Auction Price Cap; Call For Emergency PJM Auction To ‘Build Big Power Plants Again’ [PaEN]

-- Sen. Boscola To Introduce 6-Bill Package To Protect Pennsylvania Communities And Ratepayers From Large-Scale A.I. Data Centers Rapidly Expanding Across The State [PaEN]

-- PA House Committee Approves Legislation Giving Local Officials Greater Say Over Regional-Scale Developments Like A.I. Data Centers, Warehouses [PaEN]

-- PJM Interconnection Board Proposes Its Own New Plan To Integrate A.I. Data Centers, Large Loads Into Grid To Maintain Reliability [PaEN]

-- Utility Dive: PJM Updates 20-Year Forecast Of Electricity Demand Growth, Reducing Short Term Growth Estimates By Up To 2.6%, Increasing 2035 Estimate By 3.3% [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part I: PA Utility Law Project - Utility Terminations Up 30% Already; Prioritize Existing Loads; Centers Need To Help Pay For Utility Assistance [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part II: PA Consumer Advocate - PUC Should Set Conditions For Centers To Be Served By The Grid; Set Power Curtailment Priorities [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part III: PJM Market Monitor - Data Centers Have Cost Existing Ratepayers $16.6 Billion Already; Centers Should Bring Their Own Power Generation To Prevent More Large Price Spikes [PaEN]

-- PJM Electricity Auction Prices Again At Cap Imposed By Gov. Shapiro’s Lawsuit Settlement, Without It Prices Would Be 59% Higher Driven By A.I. Data Center Demand; Grid Reliability Now Questioned [PaEN]