Gov. Josh Shapiro signs executive order placing guardrails on data centers
Pennsylvania Governor Josh Shapiro signed an executive order imposing new, stringent requirements on data center developers across the state. This order aims to address community concerns regarding energy costs, air quality, and quality of life impacts from data center projects. It mandates developers secure their own power, use clean energy, be transparent with communities, and obtain local legal approval.
Pennsylvania Governor Josh Shapiro signed an executive order on August 18, establishing new, stringent requirements for data center development across the state. The order, signed at the Capitol, bypasses the need for legislative action and changes the approval process for data centers, setting new mandates for developers and communities.
TheGovernor stated that this executive order represents "the most stringent requirements in the entire country," warning developers to follow them or not plan to do business in Pennsylvania. The move comes in response to significant community pushback against data center proposals, citing concerns over energy costs, air quality, and overall quality of life. Shapiro highlighted an "unacceptable amount of speculative proposals" that he believes are negatively impacting communities.
The new requirements mandate that developers secure their own power sources, covering all associated electricity costs without burdening homeowners or businesses. Projects must also progressively source clean power and fulfill other environmental criteria. Furthermore, developers are required to engage transparently with local communities, prioritize local hiring, offer robust community benefits agreements, and obtain local legal approval before state engagement. The order also removes data centers from Pennsylvania's fast-track permitting process, shifting from voluntary to mandatory standards.
Responding to a question about Pennsylvania's previous approach to data centers, Governor Shapiro noted that only about five projects have received permits, while approximately 100 speculative projects have caused community disruption without being built. He emphasized that the executive order empowers local leaders and clarifies the operational rules in Pennsylvania. Republican opponent Stacy L. Garrity criticized Shapiro, accusing him of "gaslighting" Pennsylvanians after allegedly being a strong proponent of data centers previously, though she did not comment on the substance of the new requirements.