This guest essay first appeared in the Philadelphia Inquirer on February 4, 2026--
As we settle into the new year, the idea of “leftovers” might not be quite as appetizing as it was a few weeks ago, while we were relaxing with family and friends during the holidays.
But 2026 greets us with a challenge that went unmet last year: securing Pennsylvania’s energy future in a way that benefits our economy, environment, and everyday lives.
Why is this a challenge? Because we are currently facing difficulties of our own making, or perhaps more accurately, the consequences of our own inaction.
Like New Year’s resolutions, the solutions will take more than promises.
At the heart of the issue is the remarkable speed and intensity of data center development in Pennsylvania.
According to the most recent report from the independent market monitor for the 13-state PJM regional electric grid, data centers have dramatically increased costs for Pennsylvania’s energy consumers by as much as $23 billion across the PJM footprint over the past three years.
Rising electric costs
In other words, the primary reason electric costs are going up, and what increasingly worries public officials about grid reliability, is existing and projected future energy demand from data centers.
That demand shows no sign of slowing down.
To be fair, data centers provide vital construction and technology service jobs, can help build local tax bases, and are seen as essential to economic competitiveness and national security. But all this comes at a very real cost borne by citizens-- including those who may benefit, and many who do not.
So, what does this mean for decision-makers?
First, we need to manage the frenzied rush to build data centers by enacting strong standards to protect communities and energy consumers.
These measures include requiring data centers to directly pay for necessary grid connection and expansion costs to accommodate their demand, and securing additional, preferably clean, generation to meet their needs.
This is essential to help ensure grid reliability, along with expanding other programs and policies to make our grid more efficient and electrons more abundant.
Between recent efforts by the state Public Utility Commission to manage large energy user demand and legislation introduced in the General Assembly to address consumer and community concerns, we’re seeing the beginnings of a solution to several of these challenges.
These are urgently needed and should be advanced as soon as possible. Pennsylvania is not alone in developing these safeguards, so putting reasonable protections in place won’t hinder our competitiveness and will ensure this important industry develops in a sound and sustainable manner.
Diversifying the grid
Pennsylvania also needs to do all it can to diversify our electric grid, make it more efficient, and incentivize new, cleaner energy generation.
Legislation from Gov. Josh Shapiro’s Lightning Plan (House Bill 501 and Senate Bill 501) to expand our state’s Alternative Energy Portfolio Standards should be front and center, as it would bring new generation technologies like advanced nuclear, renewables, and geothermal to our state and help reduce long-term costs.
Legislation to modernize existing energy efficiency programs (House Bill 505 and Senate Bill 505)-- which have proven to reduce energy demand and save consumers money-- should also cross the finish line this year. So should policies that further encourage utilities to deploy advanced transmission technologies to bolster grid resilience.
Pennsylvania also needs to examine how we can better facilitate project development at the local level, where both a lack of capacity and intentional impediments have stymied the expansion of a clean energy supply.
We can have strong protections in concert with fair and efficient review.
On top of the energy cost considerations, we also need to ensure data centers do not overtax water resources (which could cause similar cost inflation for public water users) or worsen our air quality.
On this latter point, data centers should be required to maximize battery storage instead of using polluting backup generators.
This may sound like a large to-do list, but it’s one Pennsylvania can’t afford to ignore any longer.
2026 can be the year we move forward together and forge energy solutions that help our communities, economy, and environment.
Let’s not lose another moment or any further opportunities to build an affordable, reliable, and prosperous clean energy future.
Tom Gilbert is president of the Pennsylvania Environmental Council.
Related Articles This Week:
-- Gov. Shapiro’s Proposed Budget Includes Performance Standards For Data Centers Seeking State Tax Credits; Renewed Call For Lightening Energy Plan; New PUC Benchmarks For Utility Profits [PaEN]
-- Reactions To Gov. Shapiro's Proposed Budget From Citizen, Environmental, Energy, Industry, Utility Groups [PaEN]
-- House Committee OKs Bill To Give PUC More Authority To Regulate A.I. Data Centers, Other Large Loads To Protect Ratepayers, Electric Grid [PaEN]
-- Independent Fiscal Office Reports PA Electricity Prices Increased 46.1% From 2018 to 2025, More Than Other PJM States, Largely Due To Pennsylvania's Reliance On Natural Gas-Fired Electric Generation [PaEN]
-- Washington County Residents On Water Wells Not Aware A MarkWest Pipeline Drilling Project Lost 1.2 Million Gallons Of Drilling Fluid In Mount Pleasant & Robinson Townships [PaEN]
-- Environmental Hearing Board Denies CNX Gas Company Motion To Throw Out Ullom Family Appeal Over Water Loss In Washington County; Scope Of Rebuttable Presumption Under Review [PaEN]
NewsClips:
-- Scranton Times: Local Officials React To Shapiro’s Budget Address [Data Centers] [PDF of Article]
-- WHYY - Susan Phillips: Gov. Shapiro Wants More A.I. Data Centers, But They Need To Bring Their Own Power
-- PA Capital-Star: PA’s Approach To Joining The A.I. Race Must Put People First, Shapiro Said In Budget Address
-- Pittsburgh Business Times: Gov. Shapiro Proposes New Standards Requiring Data Centers To Bring Their Own Power [PDF of Article]
-- PennLive: Gov. Shapiro Lays Out 4 Principles To Steer How Big Tech Builds A.I. Data Centers In PA
-- Inquirer: Gov. Shapiro Says He’ll Prevent A.I. Data Center Developers From ‘Saddling’ Pennsylvanians With Higher Energy Costs
-- Inquirer - Frank Kummer: What Does PJM Have To Do With A.I. Data Centers And Why Is Gov. Shapiro Always So Made At It?
-- PPL Utilities Statement On Gov. Shapiro’s Budget Address And Energy Affordability
-- E&ENews/Politico: A.I Champion Josh Shapiro Leans On Tech Industry To Bear Energy Costs Of A.I. Data Centers
-- Pittsburgh Business Times: Gov. Shapiro Proposes $1 Billion Infrastructure Fund To Address PA’s Housing And Energy Needs [PDF of Article]
-- PA Capital-Star: Should A.I. Data Centers Pay Up Front Or Build Their Own Power Plants? PJM, State Governors Have Different Ideas On How To Fix Your Electricity Bill
-- Scranton Times Chris Kelly Opinion: A.I. Data Center Race A Marathon, Not A Sprint [PDF of Article]
-- Pittsburgh Business Times: Vistra Energy Beaver Valley Nuclear Power Plant VP Talks Meta/Facebook Deal, Planned 140 MW Uprate At Nuclear Plant https://tinyurl.com/3c46zxjz [PDF of Article]
-- Pittsburgh Business Times: Here Are More Details On The $10 Billion Shippingport A.I. Data Center Project Near Bruce Mansfield Power Plant Site: 593 Acres, 2 Million Square Feet [PDF of Article]
-- Pittsburgh Business Times: $10 Billion A.I. Data Center Campus, Natural Gas Power Plant Proposed For Former Bruce Mansfield Power Plant Site In Beaver County [Shippingport Boro Approved Jan. 28, Another Hearing To Be Set] [PDF of Article]
-- The Derrick: Clarion Borough Holds Public Hearing On A.I. Data Center Ordinance [PDF of Article]
-- The Citizens Voice: Rural Landowners In Luzerne County Offered $175,000/Acre For A.I. Data Center Takeover In Hollenback Twp. [PDF of Article]
-- NE PA Institute For Public Policy & Economic Development: Exploring The Dynamics Surrounding Data Centers In Northeastern Pennsylvania
-- Senate Passes Sen. Yaw Bill To Identify Sites For Natural Gas Power Plants [Except That Isn’t The Problem At All] [Senate Bill 704]
-- Senate Passes Bill To Weaken Plugging Standards For Abandoned Conventional Oil & Gas Wells [Senate Bill 712] [These wells were abandoned in the first place because there is no effective well plugging bond program and 100% of the burden put on taxpayers. Now conventional well boosters want to cut breaks to the industry another break by making the well plugging program less effective so wells have to be replugged more frequently. At the same time Congress and the President cut federal funding for well plugging.]
-- Reps. Matzie, Mehaffie Laud Passage Of Bill To Clear The Way For Construction Of Modular Nuclear Reactors [House Bill 2017]
-- Wall Street Journal: Google Is Spending Big To Build A Lead In A.I. Energy Race By Buying Energy Companies [PJM Highlighted] [PDF of Article]
-- Wall Street Journal: These Rural Americans Are Trying To Hold Back The Tide Of A.I. - Fears Of Rising Utility Costs, Job Losses, Privacy Violations [PDF of Article]
-- NYT: President’s Administration Is Blocking At Least 73 GW Of Much-Needed Solar Electricity Generation, 5.8 GW Of Wind Generation
[Posted: February 5, 2026] PA Environment Digest
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