Pennsylvania Governor Issues Executive Order Setting New Data Center Standards
Pennsylvania Governor Josh Shapiro signed an executive order implementing stricter environmental and transparency standards for new data center developments statewide. The order requires developers to meet specific clean energy and job creation benchmarks to qualify for streamlined state permits and sales tax exemptions. It also mandates that local zoning approvals must be secured before state permits are issued, and removes data centers from the state's "Fast Track" permitting initiative.
Gov. Josh Shapiro signed an executive order on August 18, 2026, implementing stricter environmental and transparency standards for new data center developments across Pennsylvania. The order introduces a two-track permitting system for data centers exceeding 25 MW, incentivizing adherence to the "Governor’s Responsible Infrastructure Development" (GRID) standards, which aim for cleaner energy and job creation.
Under the new order, developers who sign a "consent order and agreement" to follow GRID standards, which include requirements for clean energy, job creation, and sustainability, will receive state permits on a rolling basis. Critically, these developers must first demonstrate all necessary local approvals, addressing a previous loophole where state permits could precede local zoning. Developers not opting into GRID standards will face a much more difficult permitting process, requiring all applications to be submitted concurrently.
The executive order also links the state's data center sales tax exemption to compliance with GRID standards, directing the Department of Revenue to update program guidelines. Additionally, it prohibits state agencies from signing non-disclosure agreements related to data center projects and removes data centers from the "Fast Track" permitting program. The administration believes these measures will disincentivize speculative data center proposals that previously caused community consternation without firm development plans.
While not a moratorium, the order aims to enhance local decision-making power in siting and zoning. It also directs state agencies like the Public Utility Commission and the Department of Environmental Protection to advocate for rules that would prioritize other customers during power curtailments and recommend new environmental regulations for data centers, particularly concerning emissions from backup generators. Governor Shapiro asserted his authority in issuing the order, which includes a severability clause.