Gov. Shapiro signs executive order on data center development in Pennsylvania

Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05 on Tuesday, introducing strict requirements for data center development across the commonwealth. Speaking from Wilkes-Barre, Governor Shapiro emphasized that while Pennsylvania is open for business, it will not be at the expense of its residents.

The executive order aims to curb "speculative and irresponsible" data center projects by demanding developers comply with the Governor's Responsible Infrastructure Development (GRID) Requirements. Key stipulations include developers paying the full cost of new electricity infrastructure, committing to transparent community engagement with public meetings, hiring local workers, investing in community benefit agreements, and meeting high environmental protection standards, including strict water conservation.

Under the new order, the Pennsylvania Department of Environmental Protection (DEP) will only review permit applications if developers have made a legally binding commitment to meet the GRID Requirements and have secured all necessary local approvals. The order also prohibits non-disclosure agreements for data center projects and removes artificial intelligence data center proposals from the PA Permit Fast Track permitting process. Additionally, the Department of Revenue (DOR) will update its Computer Data Center Equipment Exemption Program Guidelines to ensure applicants comply with GRID Requirements.

Governor Shapiro stated this action was prompted by a rapid increase in proposed data center projects and concerns from Pennsylvanians about impacts on communities, energy costs, and the environment. He noted that while the House has advanced legislation to codify these protections, Senate Republican leaders have not taken action, prompting the executive order. The new process applies immediately to all new data center permit applications.