Shapiro Signs Executive Order Setting New Requirements for Pennsylvania Data Center Projects
Pennsylvania Gov. Josh Shapiro has signed an executive order establishing new requirements for data center projects seeking permits in the state. The order mandates that developers make legally enforceable commitments to new GRID standards covering energy costs, environmental protections, transparency, and community involvement. It also removes data center proposals from the state's Permit Fast Track Program and updates guidelines for the state's tax exemption program.
Pennsylvania Governor Josh Shapiro has signed Executive Order 2026-05, implementing new statewide requirements for data center developments. The order directs the Pennsylvania Department of Environmental Protection (DEP) to integrate the administration's Responsible Infrastructure Development (GRID) standards into its review process for data center proposals.
Under the new mandate, developers seeking permits must commit to the GRID standards through legally enforceable consent orders and agreements. These standards require developers to cover the full costs of new electricity infrastructure needed for their projects, prevent the shifting of these costs to other customers, and engage in robust community outreach including public meetings. Additional requirements include hiring and training local workers, entering into community benefit agreements, and adhering to environmental standards such as water conservation measures. The order also removes data center projects from the state's Permit Fast Track Program and prohibits the use of nondisclosure agreements for these projects.
Furthermore, the Pennsylvania Department of Revenue will update guidelines for the state's Computer Data Center Equipment Exemption Program, making compliance with GRID requirements a condition for eligibility for sales and use tax exemptions. The DEP will also collect and publicly report data on data center energy and water usage, and the administration has created a public map tracking proposed data center projects. The Department of Community and Economic Development is tasked with developing best practices for municipalities regarding zoning standards and community benefit agreements for data centers. The new permitting process applies to all new data center permit applications going forward.