PA governor signs executive order on AI data centers: 'nation’s strictest guardrails'
Pennsylvania Governor Josh Shapiro signed an executive order establishing what he calls the "nation's strictest guardrails" for AI data centers. The new GRID Standards require developers to provide their own clean power, pay for electricity costs, hire locally, and obtain local community approval. The order also removes data centers from the state's Fast Track permitting program and mandates detailed plans for environmental approval.
Governor Josh Shapiro of Pennsylvania signed an executive order on Tuesday, implementing what he described as the "nation’s strictest guardrails on AI data centers." The order comes amidst rumors of over 100 data center proposals in the state and aims to prevent rising energy costs for homeowners while granting local communities greater control over project approvals. Shapiro stated that if a local community does not approve a project, the state will also withhold approval.
The executive order legally mandates data center developers to adhere to the Governor’s Responsible Infrastructure Development Standards (GRID Standards). These standards require developers to provide their own power, cover all electricity costs, with a significant portion sourced from clean energy like solar, advanced nuclear, and battery storage. Additionally, developers must prioritize local hiring, offer "robust community benefits agreements," and secure local legal approval, all while meeting constitutional obligations to protect clean air and water. Penalties are established for non-compliance.
Shapiro is also removing data centers from Pennsylvania’s Fast Track permitting program, which previously streamlined economic development projects, and requires developers to submit detailed plans to the Department of Environmental Protection for approval. Environmental groups, including Clean Power PA and Conservation Voters of PA, lauded the move, with Clean Power PA Chair Katie Blume praising the strengthening of GRID protections. However, Pennsylvania Treasurer Stacey Garrity, a Republican, criticized Shapiro, accusing him of a policy reversal after previously being a "biggest cheerleader" for data centers. Shapiro clarified that the shift was prompted by an "unacceptable number of speculative proposals" since announcing two projects last summer in Luzerne and Bucks counties. Currently, no AI data centers are operating in Pennsylvania, though five have obtained necessary permits.