Gov. Shapiro signs executive order establishing stricter requirements on data centers
Pennsylvania Governor Josh Shapiro issued Executive Order 2026-05, imposing stricter requirements on data center developers across the state. The order mandates commitments to environmental protection, energy affordability, workforce development, and community engagement, and requires local approvals before state permits are issued. It also removes data centers from fast-track permitting and prohibits non-disclosure agreements.
Pennsylvania Governor Josh Shapiro has signed Executive Order 2026-05, titled Responsible Infrastructure Development (GRID), which implements stricter requirements for new data center proposals statewide. The order directs the Pennsylvania Department of Environmental Protection (DEP) to integrate these GRID requirements into its review process. Under the new mandate, data center developers must commit to legally enforceable standards concerning energy affordability, environmental protection, workforce development, transparency, and community engagement. They are also required to secure all necessary local approvals prior to the DEP issuing permits.
A key provision of the executive order is the removal of all data center proposals from Pennsylvania's fast-track permitting program and a prohibition on developers using non-disclosure agreements. Furthermore, developers must cover the costs of energy infrastructure themselves, without passing expenses to residents and businesses. They are also obligated to report energy and water consumption, hire and train local workers, engage with communities, and adhere to water-conservation standards. Projects failing to meet GRID requirements will be ineligible for the state's sales and use tax exemption on eligible equipment.
The Shapiro administration has launched a public map to track proposed data center projects that have contacted the DEP, allowing residents to monitor permit application statuses. Lieutenant Governor Austin Davis underscored the importance of protecting Pennsylvania's environmental progress, citing concerns about air quality and water supplies. The Governor's office stated the order was a direct response to increasing public concern regarding data centers' potential impacts on utility bills, water, air quality, and local infrastructure, though some political commentary in the article suggests the Governor's actions are a reversal of a previous pro-data center stance due to shifting public opinion.