Shapiro launches new GRID standards for data center accountability
Pennsylvania Governor Josh Shapiro has announced new statewide guidelines, known as GRID standards, for data center development. These standards aim to ensure accountability and responsible development, addressing concerns about environmental impact, energy affordability, and community engagement. Data center developers seeking state support or tax benefits will need to meet these strict requirements.
Pennsylvania Governor Josh Shapiro has introduced the Governor's Responsible Infrastructure Development (GRID) standards, a new set of guidelines for data center development across the Commonwealth. The announcement, made during his budget address, aims to ensure data centers are built with accountability and responsible practices.
Governor Shapiro stated that these standards address public concerns regarding the environmental impact, energy consumption, and potential effects on utility bills from data center development. The GRID standards require developers seeking state support to outline how they will protect energy affordability, promote transparency and community engagement, support the workforce and economic development, and protect the environment.
Under the new framework, projects achieving GRID certification will qualify for the state's Permit Fast Track Program, which expedites permitting processes. Additionally, Governor Shapiro has called on state legislators to amend existing sales and use tax exemptions for data centers, requiring GRID certification for eligibility. This change is projected to save the Commonwealth over $517 million annually by FY 2030-31, with revenue to be invested in public priorities like education and infrastructure.
To obtain GRID certification, developers must commit to significant investments (at least $250 million), create prevailing wage construction jobs and well-paying permanent jobs, and engage in community benefit agreements. They are also required to provide an energy plan to meet their power needs without burdening Pennsylvanians, source a portion of their energy from clean sources (up to 32% by 2035), and create sustainability plans to limit water and energy consumption, minimize air pollution, and support water monitoring.