Election 2026: Where Governor Candidates Garrity and Shapiro Stand on Data Centers
Pennsylvania's gubernatorial candidates, Gov. Josh Shapiro and Stacy Garrity, are taking differing stances on data center development ahead of the 2026 election, particularly regarding regulation and economic incentives. Shapiro favors voluntary standards for tax breaks, while Garrity supports mandatory regulations and a pause on development. State lawmakers have also introduced various bills to regulate data centers and potentially enact moratoriums, reflecting widespread public concern over their impacts.
Pennsylvania's 2026 gubernatorial election is seeing incumbent Gov. Josh Shapiro and Republican challenger Stacy Garrity adopting differing stances on data center development, a growing concern for many residents. While neither candidate has released comprehensive plans for regulating the industry, their positions diverge on key issues like development moratoriums and economic incentives.
Governor Shapiro advocates for voluntary environmental, workforce development, and energy standards, offering economic incentives in return. He has remained silent on the possibility of a moratorium. In contrast, Garrity, currently the State Treasurer, has expressed support for mandatory regulations independent of climate considerations and a temporary pause on data center construction to allow townships to update zoning and plan for emergency services. Both candidates have accused each other of changing their positions, with Garrity labeling Shapiro a "massive flip-flop" for advocating guardrails after previously championing data centers, including a $20 billion Amazon Web Services investment.
Public opinion in Pennsylvania reflects significant concern, with a poll indicating 64 percent view data centers as a crisis or problem due to impacts on energy prices, water availability, and property values. State lawmakers, recognizing these concerns, have introduced several bills, including proposals to repeal sales tax exemptions for data center equipment and restrict access to "opportunity zone" tax benefits. The state House has passed bills mandating disclosure of energy and water usage, and one particularly stringent bill aims to establish baseline requirements for utility contracts and mandate 32 percent clean energy use by 2035.
Shapiro's own "GRID" proposal, which requires legislative buy-in, would tie existing tax breaks to data centers meeting certain environmental, economic, and energy standards voluntarily, including creating jobs and using clean energy. Garrity has criticized these standards as voluntary, arguing for mandatory regulations and suggesting data centers be located on brownfields or industrial sites. While the state House has advanced bills related to moratoriums and regulations, and the Senate has passed a bill to restrict opportunity zone benefits, no comprehensive legislation has yet been enacted.