PHILADELPHIA — At a time when Pennsylvania is poised at the technological forefront, Governor Josh Shapiro’s recent maneuvers signal a major shift in the state’s approach to data centers and energy policy. With an eye on reelection and potential national ambitions, Shapiro’s strategy aims to balance robust economic growth with voter concerns over rising utility costs.

Since taking office in 2023, Shapiro has championed Pennsylvania as a nexus for technology and AI development, attracting massive investments from giants like Amazon, Microsoft, and Google. These projects promise to bring substantial economic benefits, including high-paying tech jobs and opportunities for local contractors and unions. However, the growing presence of data centers has sparked a backlash due to their significant energy demands, leading to higher electricity bills for residents.

Addressing these concerns, Shapiro has boldly shifted his stance, demanding that data center developers finance their own energy infrastructure to mitigate public costs. “Pay for your own power, so it's not saddling local businesses or homeowners with higher costs,” Shapiro stated in a recent interview with POLITICO.

This pivot is not isolated. Other Democratic leaders, such as Arizona’s Katie Hobbs and New York’s Kathy Hochul, have also begun tightening policies around tech developments, aiming to shield consumers from soaring energy prices. Shapiro’s proactive approach includes challenging the current operational frameworks of PJM Interconnection, the regional electricity grid manager, which has been criticized for slow responses to price spikes.

Shapiro’s stance has garnered attention beyond Pennsylvania’s borders, aligning him with a broader bipartisan push against unchecked tech expansion. During a recent White House meeting, Shapiro, along with East Coast governors from both parties, called for stringent controls on data center energy consumption and advocated for long-term contracts with energy developers to stabilize prices.

Local reactions are mixed. In Bucks County, where Trump gained significant support, officials recognize the economic benefits of temporary construction jobs, despite concerns about the long-term impact of automation and tech on employment. “This is a blue-collar township,” said Erin Mullen, vice chair of the Falls Township Board of Supervisors. “So even though the jobs are temporary, a lot of families here survive on temporary jobs, and this is huge for the trades.”

As part of his comprehensive strategy, Shapiro has proposed new regulations that would impose strict standards on data center developers seeking state support. These measures aim to ensure that the tech boom benefits all Pennsylvanians without compromising the state’s energy affordability or environmental commitments.

Shapiro’s recalibrated approach seems to resonate with voters. Recent polls indicate a cautious but growing acceptance of data centers, provided there are guarantees against unchecked hikes in power costs. With PJM agreeing to extend price controls into the next decade, Shapiro’s policies might just strike the right balance between technological advancement and economic stability for Pennsylvania.