Pennsylvania Governor Josh Shapiro restricts data center development statewide
Pennsylvania Governor Josh Shapiro has signed an executive order that significantly restricts data center development statewide. The order requires local approval for state permits, removes fast-track permitting, and mandates developers provide their own energy infrastructure and community benefits. This policy shift, aimed at protecting communities, is expected to face legal challenges from the data center industry.
Governor Josh Shapiro of Pennsylvania signed an executive order imposing significant new restrictions on data center development. The order requires local approval for projects to obtain state permits, effectively halting some developments, and removes all current and future data center projects from a previously established fast-track permitting program.
This action represents a notable change in Governor Shapiro's policy, who had previously championed data center growth, including securing a $20 billion commitment from Amazon for projects in Bucks and Luzerne Counties. His shift comes amidst a dramatic change in public opinion regarding data center development across the state.
The executive order introduces several new "guardrails," such as mandating community benefits agreements for projects to receive tax breaks, prohibiting state agencies from signing non-disclosure agreements related to data center projects, and requiring developers to fund their own energy infrastructure to cover increased usage costs. While it does not end state sales tax exemptions for data centers, it aims to protect communities from negative impacts.
With this order, Pennsylvania joins other states in regulating data center expansion. The Data Center Coalition, representing companies like Amazon and Microsoft, criticized the midstream rule changes, stating that companies and communities have already made plans. The Shapiro administration anticipates potential legal challenges from the data center industry.