Companies are demanding states cut red tape. Data center-wary voters may think differently

Companies are demanding states cut red tape. Data center-wary voters may think differently

News ClipCNBC·PA·6/22/2026

Pennsylvania Governor Josh Shapiro introduced new "strict guardrails" for data center developers amidst growing public opposition to projects like two Amazon data centers. These GRID standards aim to address concerns about energy, environment, and community engagement. Meanwhile, a Republican gubernatorial candidate is calling for a moratorium on data center development, highlighting increasing political friction over these projects.

oppositiongovernmentelectricityenvironmentalzoningmoratorium
Amazon
Gov: Pennsylvania Governor's Office, Pennsylvania Department of Community and Economic Development

Pennsylvania Governor Josh Shapiro is facing significant public backlash over a $20 billion economic development deal announced last June, which includes two large Amazon data centers. An Emerson College poll revealed 42% of Pennsylvanians oppose a data center in their community, leading Shapiro to introduce new "strict guardrails" known as the Governor's Responsible Infrastructure Development (GRID) standards.

These standards mandate that data center companies either provide their own energy or fully cover costs to maintain affordable local utility rates, promote transparency and community engagement, support the workforce, and protect the environment. Secretary of Community and Economic Development Rick Siger emphasized the state's efforts to cut red tape and streamline permitting processes to attract businesses, despite the added complexity of these new standards. Site selection consultants note that community opposition is now a critical factor in company location decisions.

The debate has intensified politically, with State Treasurer Stacy Garrity, Shapiro's Republican opponent for the 2026 gubernatorial race, proposing a "pause" on major data center development. Garrity criticized Shapiro's approach, citing community concerns regarding water usage, energy demands, noise, zoning, infrastructure, and farmland impact. The ongoing tension underscores a broader challenge for states balancing economic development goals with increasing community and environmental concerns.