Gov. Shapiro releases data center development standards
Pennsylvania Governor Josh Shapiro has released the Responsible Infrastructure Development (GRID) Standards, which data center developers must meet to receive state support like tax benefits and expedited permitting. These standards aim to ensure projects provide local value, mitigate impacts, and are developed responsibly, focusing on energy affordability, clean energy, transparency, workforce development, community impact, and environmental protection. The administration is working with the General Assembly to codify these standards into law.
Pennsylvania Governor Josh Shapiro has unveiled the full Governor
GÇÖs Responsible Infrastructure Development (GRID) Standards, designed to establish guardrails and accountability for data center development across the state. These standards dictate that developers must demonstrate their projects provide tangible value to local communities, mitigate environmental impacts, and ensure responsible development to qualify for state support, including coordinated project assistance, expedited permitting, and access to state tax incentives.
Developed with input from diverse stakeholders including local leaders, labor groups, industry members, and environmental advocates, the GRID standards require developers to submit a joint application to the Office of Transformation and Opportunity and the Department of Revenue. This application must detail how the project will protect energy affordability, promote transparency and community engagement, support workforce and economic development, and protect the environment. Key requirements include developers fully funding their energy needs, committing to increasing percentages of clean energy resources, and paying all associated interconnection and transmission costs.
Furthermore, the standards mandate robust community outreach plans, detailed project footprint reports covering electricity demand and water consumption, and community benefit plans that include substantial new investments, job creation with prevailing wages, and financial contributions to local priorities. Environmental protections are emphasized, requiring advanced technologies for water and energy conservation, minimizing air pollutants, and committing to monitoring and mitigating impacts in sensitive ecological areas. The Shapiro Administration is seeking legislative amendments to Act 25 of 2021 to require GRID certification for data center tax exemptions, with the Pa. House of Representatives already voting in favor of baseline requirements. Additionally, a new local government toolkit is being rolled out to assist municipalities in evaluating data center proposals and navigating issues like zoning and infrastructure capacity.