What Shapiro’s new data center order does, and doesn’t, force developers to do
Pennsylvania Governor Josh Shapiro has signed an executive order implementing stricter environmental and transparency standards for data center developments statewide. The order ties state permits and sales tax exemptions to compliance with new GRID standards, requiring clean energy, job creation, and prior local zoning approval. It also prohibits state agencies from signing NDAs for future projects and removes data centers from a fast-track permitting process.
Pennsylvania Governor Josh Shapiro has issued an executive order imposing significantly stricter environmental and transparency requirements on new data center developments across the state. The order mandates that data center developers seeking state permits and sales tax exemptions must sign an agreement to adhere to the Governor’s Responsible Infrastructure Development (GRID) standards. These standards include provisions for using increasing percentages of dispatchable, clean firm energy, making substantial investments, creating jobs with prevailing wages, and implementing sustainability plans to limit emissions and consumption of water and energy.
A key change introduced by the order is the requirement for developers to secure all local zoning approvals before they can receive any state permits or authorizations. This move aims to respect local decision-making and deter speculative data center proposals that can cause community concern. Sam Robinson, a deputy chief of staff for Governor Shapiro, emphasized the administration's desire to retain local power in siting and zoning decisions. Additionally, the executive order removes data centers from the state's "Fast Track" permitting initiative and prohibits state agencies under the governor’s control from entering into non-disclosure agreements regarding future data center projects.
While the order does not eliminate the state’s sales tax exemption for data centers, it unilaterally makes adherence to the GRID standards a condition for receiving this financial incentive. Existing state permits and tax exemptions for projects already underway will not be rescinded, but any remaining permitting for these projects will now need to comply with the new GRID requirements. The administration also stated it would advocate for the Public Utility Commission to prioritize curtailing data center power during emergencies and prevent associated utility costs from being passed to consumers, and for the Department of Environmental Protection to recommend new regulations to mitigate environmental impacts. Governor Shapiro asserted his authority to issue the order, which includes a severability clause.