Shapiro Signs Executive Order Restricting Data Center Development, Giving More Authority to Local Communities

Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday, implementing what he calls the nation's strictest requirements for data center development in the Commonwealth. The executive action, known as the Governor’s Responsible Infrastructure Development (GRID) Requirements, aims to prevent speculative data center projects, empower local communities in development decisions, and protect residents from increased costs and environmental harm.

Initially a proponent of data center growth, including a $20 billion Amazon investment announcement, Governor Shapiro stated that he shifted his stance due to significant community and local leader opposition. He emphasized that the executive order acts in the absence of legislative action, with the House having passed GRID Requirements as legislation while the Senate, led by Majority Leader Sen. Joe Pittman, has refused to bring it to a vote. Sen. James Malone (D-Lancaster) had called for a return to Harrisburg to address two bills (HB 2496 and SB 1345) proposing data center moratoriums of 180 days and 18 months, respectively, to allow municipalities time for planning related to land use, water, and electrical consumption.

The GRID Requirements are legally binding, mandating developers to provide a notice of intent to comply, present detailed plans to the PA Department of Environmental Protection, and sign a consent order outlining penalties for non-compliance. The order also removes all data centers from the state’s Fast Track permitting program. Governor Shapiro stated that developers must adhere to these new guardrails or seek development opportunities elsewhere.

The executive order has drawn mixed reactions. Pennsylvania House Democrats applauded the move, criticizing Senate Republicans for legislative inaction. However, State Treasurer Stacy Garrity, Shapiro’s Republican opponent, accused him of