Pennsylvania leaders weigh in on Shapiro’s order to control data center growth
Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05, establishing new Responsible Infrastructure Development (GRID) Requirements for data center proposals. This order mandates local approval, self-provided power, and clean energy commitments, aiming to control speculative growth and protect residents. The move has garnered mixed reactions from industry groups and state legislators.
Pennsylvania Governor Josh Shapiro has signed Executive Order 2026-05, implementing new Responsible Infrastructure Development (GRID) Requirements for data center proposals across the Commonwealth. The order mandates that data center developers must secure local approval and make legally binding commitments to meet GRID requirements, including providing their own power with an increasing portion from clean energy sources, before their state permit applications can be evaluated by the Department of Environmental Protection (DEP).
The executive order, signed on August 18, removes data centers from the Fast Track permitting program and disqualifies non-compliant developers from existing sales tax exemptions on data center equipment. Governor Shapiro stated the measures are designed to block speculative projects, empower local communities, and protect Pennsylvania residents' interests, including their constitutional right to clean air and pure water.
The initiative has elicited varied responses. Dan Diorio, executive vice president of state policy and government affairs for the Data Center Coalition, expressed support for the order's intent but cautioned against changing rules mid-stream for ongoing projects, emphasizing the industry's economic contributions to the state. State Senator Tracy Pennycuick (R-24) supported the new hurdles but disagreed with maintaining tax exemptions for companies simply meeting basic responsibilities. Conversely, State Rep. Dave Madsen (D-Dauphin) lauded the order, calling it the nation's strictest guardrail for data center development.
Advocacy groups also weighed in, with the Better Path Coalition asserting that the order does not go far enough and demanding a statewide moratorium on data center development to study its impacts. Molly Parzen, executive director of Conservation Voters of Pennsylvania, supported the Governor, stating the order is a meaningful step to address affordability crises and protect natural resources from rapid data center growth.