Shapiro reverses course on data center industry
Pennsylvania Gov. Josh Shapiro announced new, stricter 'guardrails' for data center projects, requiring them to meet standards for electricity costs, water use, and local approval to receive state permits or tax exemptions. This policy shift follows growing public backlash against data centers and increasing political pressure. The article also notes similar regulatory actions and moratoriums in other states.
Pennsylvania Governor Josh Shapiro announced new "strictest guardrails" for data center developments in the state, requiring projects to meet specific standards before receiving state construction permits or tax exemptions. The new requirements include plans for developers to pay the full cost of their electricity, demonstrate advanced water conservation technologies, and secure local approval prior to seeking state permits. This policy shift by Governor Shapiro, a potential 2028 presidential candidate, marks a reversal from his previous pro-data center stance and comes amid increasing public backlash and pressure from his Republican opponent, Stacy Garrity.
Shapiro criticized "predatory developers" for attempting to push through dozens of data center projects without adequate financing or clients, citing a community uprising and a developer's lawsuit in Archbald Borough as an example of the negative impacts on local communities. State Representative Doyle Heffley also voiced concerns from Carbon County residents regarding data centers' effects on land, water, and the electric grid, stating that while he welcomes the governor's steps, further protections for communities and local decision-making are needed.
The article highlights a national trend, with other governors like Texas's Greg Abbott, Arizona's Katie Hobbs, New York's Kathy Hochul, and Illinois's JB Pritzker also taking steps to regulate or restrict data center growth. These measures include imposing moratoriums on tax exemptions or construction, investigating electricity costs, and proposing new legislative agendas to curb incentives. Public sentiment has soured on data centers due to concerns over energy and water consumption, loss of open space, noise, property values, and the strain on local infrastructure, leading to rejections in local zoning and permitting votes across the U.S.