Shapiro enacts stricter requirements on data centers

Pennsylvania Governor Josh Shapiro has introduced a new executive order to implement stricter requirements for data center proposals across the state. The order aims to ensure that developers secure necessary power, financing, and local support before advancing their projects.

Sean O'Leary, a senior researcher and author at the Ohio River Valley Institute, discussed the governor's new guidelines, noting that they respond to significant public concern regarding data centers. These concerns range from environmental impacts, particularly on water resources, to potential increases in electricity bills and broader worries about artificial intelligence's economic and environmental effects.

Key provisions of the executive order include requiring data centers to pay for their own power and any necessary capital upgrades, a trend O'Leary says is becoming more common in states like Pennsylvania and Ohio. The order also pushes for local hiring, especially during the construction phase where many jobs might otherwise go to outside workers in rural areas. Additionally, it addresses the issue of non-disclosure agreements (NDAs) by banning them for state employees, although O'Leary points out this does not extend to local officials, where much of the relevant activity occurs. The order also requires data center developers to acquire local permits, seemingly returning more power to localities, though the effectiveness depends on existing local zoning laws and regulations. O'Leary cautioned that, as an executive order, these provisions could be subject to change by future administrations.