Shapiro shifts course on data centers as governor campaign ramps up
Pennsylvania Governor Josh Shapiro issued an executive order establishing new "guardrails" for data center developments, requiring them to meet standards for electricity costs, water use, and local approval before receiving state permits or tax exemptions. This action is part of a national trend of increasing public backlash and regulatory scrutiny against data centers, with other governors also taking steps to impose restrictions or halt tax breaks. Shapiro highlighted issues with "predatory developers" and mentioned a lawsuit related to community resistance in Archbald Borough.
Pennsylvania Governor Josh Shapiro announced an executive order introducing new regulations for data center projects, requiring them to cover full electricity costs, demonstrate advanced water-saving technology, and secure local approval before state permits or tax exemptions are granted. Shapiro described these as the "strictest guardrails in the nation," though he did not impose a full moratorium on permits. This decision comes amidst growing public discontent with the energy and water demands of data centers and as Shapiro faces political pressure ahead of midterm elections, with his administration noting over 100 proposed projects in Pennsylvania.
Shapiro specifically criticized "predatory developers" attempting to force projects through and cited a "community uprising" in Archbald Borough against proposed data center campuses, which has led to a lawsuit from one developer and motions for recusal against local council members. The article also highlights similar actions by other governors across the US, including Texas Gov. Greg Abbott who ordered regulators to scrutinize data center electricity impacts and plans for future legislative restrictions. Arizona Gov. Katie Hobbs secured a three-year moratorium on sales tax exemptions for data centers, and New York Gov. Kathy Hochul ordered a one-year ban on large data centers to facilitate environmental and energy grid protections.
Illinois Gov. JB Pritzker halted sales tax exemptions, and gubernatorial candidates in Ohio and Wisconsin have also unveiled policies or campaigned on stricter data center regulations. The widespread opposition is fueled by concerns over loss of open space, farmland, rural character, quality of life, property values, noise from generators, aquifer depletion, and rising electricity bills. Communities have increasingly rejected projects in local zoning and permitting votes, prompting state leaders to reconsider previous pro-development stances.