From ‘all in’ to tap the brakes: Josh Shapiro redefines Pennsylvania’s tech boom -
Pennsylvania Governor Josh Shapiro has reversed an earlier policy, removing data center projects from an expedited permit review program. Executive Order 2026-05 establishes a more stringent framework, requiring developers to make binding commitments on energy costs, transparency, workforce development, and environmental protection. This policy shift affects all future data center developments in the state, despite an earlier $20 billion Amazon investment announcement.
Pennsylvania Governor Josh Shapiro has significantly altered the state's approach to data center development, moving from an "all in" stance to implementing more stringent regulations. In June 2025, Gov. Shapiro had announced a $20 billion investment by Amazon in cloud-computing and AI campuses across Pennsylvania, highlighting the state's potential as a tech hub and its energy production capabilities. The state had also launched the PA Permit Fast Track Program to expedite major infrastructure projects.
However, this week, Gov. Shapiro signed Executive Order 2026-05, immediately removing data center projects from the fast-track program. The order establishes a new "GRID framework" requiring developers to make legally binding commitments related to energy affordability, transparency, community engagement, workforce and economic development, and environmental protection. These commitments include covering the full cost of required infrastructure, engaging with local residents, hiring Pennsylvania workers, and addressing water conservation and air quality. Developers must now secure all necessary local approvals before the Department of Environmental Protection (DEP) will begin its state permit review. The order also bans non-disclosure agreements for data center proposals and mandates reporting on energy and water usage.
Dan Diorio, executive vice president of state policy & government affairs at the Data Center Coalition, acknowledged the governor's goals but emphasized the importance of policy stability, noting that companies have made plans based on previous rules. He highlighted the significant economic benefits data centers bring to Pennsylvania, including job creation, GDP contribution, and tax revenue. The article concludes by stressing that data centers are critical infrastructure requiring careful local planning, balancing economic opportunities with community concerns about electric rates, water, noise, traffic, and land use.