Lawmakers call for stronger data center regulations
The governors of New York and Pennsylvania have signed executive orders regulating data center development, with New York enacting a statewide moratorium on large-scale facilities and Pennsylvania implementing mandatory GRID requirements. While these are seen as initial steps, some lawmakers and advocates are calling for stronger, more permanent legislative action and a moratorium in Pennsylvania.
Governors Kathy Hochul of New York and Josh Shapiro of Pennsylvania have recently signed executive orders aimed at regulating data center development in their respective states. Governor Hochul's order, signed on July 14, instituted a one-year statewide moratorium on large-scale data centers requiring 50 megawatts or more of energy, alongside other regulations. Her order also directed Empire State Development to create a Community Investment Framework to guide local communities in negotiating benefits from data center developers.
A month later, on August 18, Governor Shapiro signed an executive order instituting mandatory Governor’s Responsible Infrastructure Development (GRID) requirements for all data center projects seeking permits in Pennsylvania. These requirements focus on energy affordability, transparency, community engagement, workforce and economic development, and environmental protection, including the use of renewable energy and water recycling. Shapiro emphasized that developers must comply with these stringent rules to operate in Pennsylvania and removed data centers from the state's Permit Fast Track program.
Despite these executive actions, some lawmakers and advocates in both states argue that the measures do not go far enough. PA Senator Rosemary Brown (R-40) criticized Shapiro's order for not including a moratorium and called for stronger, more comprehensive statewide protections. In New York, Assembly Member Didi Barrett (D-106) and Sen. Kristen Gonzalez (D, WF-59), along with 58 other state lawmakers, sent a letter to Governor Hochul urging her to sign the Data Center Development Act. This bill, which passed both houses, proposes a one-year moratorium and aims to provide more permanent, law-based regulations regarding ratepayer protections, public participation, community benefits, labor standards, and renewable energy procurement for data centers. Hochul has until the end of the year to act on the bill.