Gov. Josh Shapiro signs executive order restricting data center development in Pennsylvania
Pennsylvania Governor Josh Shapiro signed an executive order significantly restricting data center development statewide. The order mandates local approval for state permits, removes projects from fast-track permitting, and imposes new environmental and transparency requirements, including water conservation and independent electricity generation. This action marks a shift from Shapiro's earlier pro-development stance, driven by growing public and bipartisan opposition.
Pennsylvania Governor Josh Shapiro signed a sweeping executive order on Tuesday, implementing significant restrictions on data center development across the state. This action represents a dramatic policy shift for Shapiro, who previously championed data center growth, including a $20 billion commitment from Amazon for projects in Bucks and Luzerne Counties. The order, which explicitly states it is not a moratorium, requires data center projects to secure local approval to obtain state permits, effectively removing them from the state's fast-track permitting program.
Under the new regulations, all data center developments must adhere to the Governor’s Responsible Infrastructure Development (GRID) standards. These standards necessitate legally binding agreements on environmental protection, water conservation, early public notification, and transparency. Projects are also mandated to provide their own electricity generation, cover all associated energy costs, and sign community-benefit agreements for local hiring and infrastructure investment. Additionally, the Department of Environmental Protection is tasked with publishing a public map of permitting information, and state agencies are prohibited from signing non-disclosure agreements related to data center projects.
Shapiro stated that the executive action was necessary to protect Pennsylvanians from "predatory developers" and projects with negative community impacts, referencing controversial developments in Archbald and Montgomery County. The move comes amid increasing bipartisan backlash against data centers, with a recent poll indicating 76% of registered Pennsylvania voters oppose data centers in their communities. While the order was praised by environmental groups and local government associations like the Pennsylvania Association of Township Supervisors, industry representatives from the Data Center Coalition (representing Amazon, Microsoft, and other developers) expressed concerns about rules changing "midstream" for "responsible data center projects." Shapiro's administration indicated preparedness for potential legal challenges to the order.