Pennsylvania Governor Shapiro Issues Order to Curb Data Center Growth

Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05, known as the Governor’s Responsible Infrastructure Development (GRID) requirements, to control the rapid growth of data centers across the state. The order aims to block speculative data center projects, enhance local community input, and protect the environment and electric grid. Shapiro emphasized that developers unwilling to meet strict state requirements and gain local approval would not receive Commonwealth support.

The GRID requirements mandate that data center developers cover the full cost of new electricity infrastructure, engage transparently with local communities, hire and train local workers, commit to community benefit agreements, and adhere to high environmental protection standards, including water conservation. The Governor's action comes amidst a political climate where data center growth is a contentious issue, with Republican gubernatorial candidate Stacy Garrity having called for a pause on approvals. Shapiro cited a cluster of problematic data center projects in Archbald, Lackawanna County, and the Amazon data center project in Luzerne County as catalysts for the order.

Further provisions of the executive order include removing AI data center projects from the PA Permit Fast Track Program, banning non-disclosure agreements with data center projects, and requiring developers to submit detailed information on energy and water consumption to the Department of Environmental Protection (DEP). The DEP will also maintain a publicly accessible map of data center projects. Additionally, the Special Counsel for Energy Affordability will work with the Pennsylvania Public Utility Commission (PUC) to prevent energy cost shifts to residents and ensure data centers are prioritized for service interruptions during grid stress.

While the Democratic-controlled House approved House Bill 2650, which codifies GRID requirements, the Republican-controlled Senate has not acted on it, prompting Shapiro's executive order. Senate Majority Leader Joe Pittman criticized the Governor's move, suggesting it's politically motivated and that the Senate plans to address data center legislation this fall, including potentially allowing local moratorium decisions. Despite the criticism, the order received support from organizations like the Natural Resources Defense Council and the Pennsylvania State Association of Township Supervisors, who lauded its emphasis on local land-use decisions and environmental protection.