Gov. Shapiro signs executive order for data center development in Pennsylvania
Pennsylvania Governor Josh Shapiro signed an executive order establishing new requirements for data center development across the state. The order aims to preserve local control, prevent infrastructure costs from being shifted to residents, and enforce environmental and community engagement standards. It also makes developers responsible for related infrastructure costs and removes data centers from the state's Permit Fast Track Program.
Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05 on Tuesday, introducing new requirements for data center development statewide. The order, which takes immediate effect, directs the state Department of Environmental Protection (DEP) to incorporate 'Responsible Infrastructure Development,' or GRID, standards into its permitting process. These standards address energy affordability, environmental protection, workforce development, transparency, and community engagement, ensuring that permits are not issued until projects secure local approvals.
Under the GRID requirements, data center developers will be held responsible for the full costs of new electricity generation, transmission, and distribution infrastructure, preventing these expenses from being passed on to residents. Developers must also commit to public outreach, hiring local workers, providing community benefits, and implementing water conservation measures. The order also prohibits non-disclosure agreements for data center projects, requires operators to report energy and water consumption, and makes non-compliant developers ineligible for the state's sales and use tax exemption.
The Governor's action comes amidst a surge in proposed data center projects, with over 100 identified across Pennsylvania. The issue has been particularly contentious in Granville Township, where supervisors have been developing zoning regulations to address concerns about electricity and water use, traffic, noise, and environmental impacts associated with a proposed hyperscale data center. The township recently adopted an ordinance allowing data centers as a conditional use in its Industrial District, though a development plan submitted in July was rejected as incomplete.