PHILADELPHIA — As Pennsylvania Governor Josh Shapiro prepares for his reelection campaign, he finds himself in a delicate dance with the tech industry, particularly concerning artificial intelligence and data centers. A prominent Democrat in a pivotal swing state, Shapiro has aligned his political fortunes with tech investments, notably securing a staggering $20 billion from Amazon and attracting significant funds from giants like Microsoft and Google. However, he is now recalibrating his narrative in response to a growing public outcry over the rising costs associated with these developments.
Shapiro’s approach reflects a strategic pivot, particularly as voters express increasing anxiety about the impact of data centers on their electricity bills. “Pay for your own power, so it’s not saddling local businesses or homeowners with higher costs,” he commented in a recent interview with POLITICO, indicating a shift from his previous stance.
This alteration in tone is conspicuous for a leader who has been at the forefront of data center politics. With rising electricity prices posing a significant threat to political stability for both parties, Shapiro has joined forces with fellow Democratic governors like Katie Hobbs of Arizona and Kathy Hochul of New York to combat the narrative that data centers are driving up utility costs. Recent data shows that household electricity bills have surged at twice the rate of inflation, a statistic that could spell trouble for any incumbent.
“Too many of these projects have been shrouded in secrecy, leaving local communities in the dark about who is coming in and what they’re building,” Shapiro declared earlier this month during his annual address to the Pennsylvania General Assembly.
As he embarks on his reelection journey with favorable poll numbers, Shapiro is presenting the tech boom as a catalyst for union jobs during the construction phase. However, he must also navigate the potential backlash from voters who may feel alienated by these developments.
Christopher Borick, a political science professor at Muhlenberg College, posits that Shapiro’s reputation as a “get stuff done” leader could be jeopardized if voters directly associate energy affordability issues with data center initiatives. “People have started to connect the demand for AI and data centers to pricing,” he observes.
Jobs and Energy
Shapiro’s foresight regarding the data center wave is noteworthy. Shortly after taking office in 2023, he initiated an analysis to gauge the future trajectory of Pennsylvania’s economy and identified AI as a significant opportunity. “Not just because we thought it was cool, but because we have strengths,” remarked Rick Siger, Shapiro’s secretary of community and economic development and a former Obama aide.
Carnegie Mellon University, renowned for its engineering and technology programs, along with Pennsylvania’s robust manufacturing sector, were pivotal selling points. The state’s capability to produce hardware for data centers, coupled with the presence of tech companies eager to harness advanced AI, positioned Shapiro’s administration favorably. “Speed matters, in particular to companies that are competing in AI,” Siger noted.
In June 2025, Shapiro heralded Amazon’s monumental $20 billion investment in two data center complexes—one in Bucks County and another near Wilkes-Barre. “The employees will be making, in some cases, double the average wage in that county,” Siger claimed, emphasizing the allure of high-tech jobs that enable workers to remain in their hometowns.
Local officials in Bucks County, which voted Republican in 2024 for the first time since 1988, express cautious optimism. Erin Mullen, vice chair of the Falls Township Board of Supervisors, acknowledged the challenges posed by technology potentially displacing jobs but affirmed the importance of pursuing temporary construction opportunities: “This is a blue-collar township. So even though the jobs are temporary, a lot of families here survive on temporary jobs, and this is huge for the trades.”
Shapiro has also leveraged Pennsylvania’s substantial natural gas reserves in discussions with tech firms. Last summer, he joined forces with Trump and state Republican Senator Dave McCormick to announce multi-billion dollar commitments aimed at reviving aging hydropower and expanding nuclear and natural gas electricity generation. Despite recent cuts to federal renewable energy tax credits, he continues to champion Pennsylvania’s energy resources, albeit with a partisan twist.
“I’m an ‘all-of-the-above’ energy governor,” Shapiro asserted in his POLITICO interview, pointing fingers at federal cutbacks that have cost the state thousands of union jobs. “I don’t think it’s an either-or — it’s a both-and. We need to generate more power. Yes, it will rely in part on Pennsylvania natural gas. We also need to generate more power with renewables.”
Power Politics
Shapiro’s insistence that data center developers cover the costs associated with electricity infrastructure mirrors recent rhetoric from the Trump administration, yet it also highlights a long-standing concern of his. Last year, while courting Amazon, Pennsylvania consumers faced a staggering $14.7 billion charge from PJM Interconnection, the region’s electricity grid manager, leading to unprecedented double-digit increases in utility bills. Shapiro has since clamored for a price cap on the rapidly escalating electricity costs, a move that has garnered significant media attention and could reshape Pennsylvania’s energy landscape.
According to federal data, electricity prices in Pennsylvania soared roughly 20 percent between November 2024 and November 2025—the highest rate in the nation. PJM has warned that the construction pace of new data centers could outstrip energy supply, posing a risk of shortages by the decade’s end. “PJM is broken,” Shapiro declared in December, criticizing its slow response to energy needs. “We are being held captive.”
While the intricate market rules governing power prices might evade the average American’s daily discussions, both Shapiro and Trump have linked their political credibility to the promise of making data centers financially accountable for energy costs. In January, Shapiro united with other East Coast governors to urge PJM to regulate power prices and for data centers to “bring their own power” through long-term contracts with new energy developers.
Some tech firms are starting to heed this call. Trump recently announced via Truth Social that the White House was collaborating with tech companies to contain public energy costs, and Microsoft has pledged to assume greater responsibility for these expenses.
Polling indicates this approach might resonate with voters. A recent POLITICO survey revealed that while constituents are concerned about the implications of data centers on power prices and blackout risks, they remain generally supportive of new data center projects, even if it means increased electrical bills.
In his address to lawmakers, Shapiro outlined a three-pronged strategy to combat rising energy costs, proposing new regulations for data center developers, electric utilities, and the regional grid, PJM. He vowed to “hold data center developers accountable to strict standards if they want our full support.” This week, PJM agreed to extend electricity price controls into 2030, a significant concession in the ongoing energy debate.
