The report from the Pennsylvania Sustainable Business Network highlights the financial strain that data center development is placing on small businesses in Pennsylvania. With over 1 million small businesses employing around 2.5 million people, many are struggling to cope with rising utility costs attributed to the growth of tech company AI data centers.
Key findings include:
- Rising Costs: 81% of small businesses reported an increase in utility bills over the past year, with more than half raising prices and one in five freezing hiring.
- Impact of Energy Costs: The report states even a 10% rise in annual energy costs could adversely affect small businesses’ hiring capabilities and overall sustainability.
- Electricity Bill Increases: Recent capacity cost increases could lead to a 10–20% rise in residential and up to a 29% increase in business electricity bills.
- Negotiation Disparity: Unlike large corporations, small businesses cannot negotiate their energy costs effectively. They lack the ratepayer protections that exist for residential customers.
- Advocacy and Support: The authors of the report advocate for state measures to ensure small businesses are included in community benefit negotiations and propose immediate support options, such as energy bill assistance and expanded efficiency grants.
The report also emphasizes the potential of clean energy solutions to help mitigate electricity prices, although structural barriers currently slow down the integration of renewable energy sources into the grid.
For further details, the report and analyses can be accessed through various linked resources.
