Pennsylvania governor issues order on data center development
Pennsylvania Gov. Josh Shapiro signed an executive order imposing stricter requirements on data center developers and giving municipalities more control over project approvals. The order removes data centers from the state’s fast-track permitting program, requires energy and water reporting, and links state permits and tax benefits to local approval and voluntary GRID commitments.
Pennsylvania Gov. Josh Shapiro signed an executive order on Aug. 18 establishing new guardrails for data center development amid growing public opposition to AI-focused hyperscale projects. The order gives municipalities greater control by requiring local approval before the Pennsylvania Department of Environmental Protection can issue permits, removes data centers from the state’s PA Permit Fast Track Program, bars nondisclosure agreements, and requires annual reporting of energy and water use beginning in July 2027.
The order builds on the Governor’s Responsible Infrastructure Development initiative, which includes standards for economic development, energy affordability, transparency, water conservation and air pollution. Developers that do not agree to the GRID requirements will not qualify for the state’s existing data center equipment tax exemption, though no developers had signed GRID agreements as of Sept. 18.
The policy comes as Pennsylvania considers more than 100 additional data center proposals, including the contested $15 billion PAX-1 project in Middlesex Township, Cumberland County. Local officials, environmental advocates and industry representatives offered mixed views, with supporters citing stronger protections and critics warning that restrictive local ordinances or changing rules could delay investment; advocates said legislation is still needed to make the requirements binding.