Gov. Shapiro signs data center executive order. Critics say it falls short -
Pennsylvania Governor Josh Shapiro signed an executive order imposing stringent requirements on AI data center developers, aiming to ensure community respect and compliance with environmental and local standards. The order mandates developers provide their own renewable power sources and secure local land use approval before state permit reviews. While Shapiro calls them the "strictest guardrails in the nation," critics argue the measures fall short of a full moratorium or reversing tax incentives.
Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday, implementing stringent, legally binding requirements for AI data center developers operating in the commonwealth. Describing developers as "greedy" and "predatory," Shapiro stated the new rules are the "strictest guardrails in the nation," designed to protect communities and ensure compliance with environmental and local standards. The order directs the Department of Environmental Protection to only review permit applications after local land use approval is secured and mandates developers provide their own power, with an increasing portion from renewable sources, along with community benefits and public transparency.
The executive order has drawn criticism from both sides of the political spectrum. Republican state Treasurer and gubernatorial opponent Stacey Garrity accused Shapiro of "gaslighting," suggesting his action was a politically motivated reversal after previously welcoming major data center investments, including Amazon's $20 billion project in Luzerne County a year prior. Environmental groups like Food and Water Watch also deemed the order "too little, too late," advocating for a mandatory moratorium on all new data center development, a measure Shapiro's order explicitly falls short of.
Shapiro defended his stance by noting a significant change in the data center landscape, with an "unacceptable number of speculative projects swamping our commonwealth." He highlighted that only five projects currently have the necessary permits, contrasting with 20 permit applications received by the DEP. The new executive order effectively eliminates the fast-tracked permitting process previously offered under his voluntary Governor's Responsible Infrastructure Development (GRID) Standards, which had failed to pass the Republican-led Senate.
Industry representative Dan Diorio, Executive Vice President of State Policy & Government Affairs for the Data Center Coalition, expressed concerns about changing rules "midstream," warning of potential negative impacts on ongoing investment and Pennsylvania's ability to compete for economic opportunities. He emphasized the need for clear, predictable standards to foster confidence and investment, rather than "one-size-fits-all policies that stifle investment and job creation."