Pennsylvania Data Center Order Puts Local Approval First
Pennsylvania Governor Josh Shapiro signed an executive order mandating local approval and binding commitments from data center developers for permits, while also removing them from the fast-track permitting process. This contrasts with Maryland's approach, which focuses on utility cost considerations and a large load registry via the Utility RELIEF Act. Maryland's Governor Wes Moore and several counties have also emphasized local control and developer accountability for infrastructure costs.
Pennsylvania Governor Josh Shapiro has issued an executive order that significantly alters the permitting process for data centers within the Commonwealth. The new directive requires data center developers to secure local approval and make legally binding commitments on energy usage, infrastructure, and community impacts before their permit applications are reviewed at the state level. Key provisions include the removal of data centers from Pennsylvania's Fast Track permitting process and a prohibition on nondisclosure agreements for such projects.
This executive order reflects a different strategy compared to Maryland's recent legislative actions. Maryland's Utility RELIEF Act, enacted this year, lowered the threshold for "large load customers" to 25 megawatts and mandates the Public Service Commission (PSC) to factor in the system costs created by these customers when approving their rates. The Maryland law also requires the PSC to establish a large load registry by July 1, 2027, compelling developers to report detailed project information including energy and water needs, and site control.
Despite the legislative differences, Maryland's Governor Wes Moore has publicly aligned with Pennsylvania's sentiment regarding local control. At a recent conference, Governor Moore stated that taxpayers should not bear the infrastructure costs incurred by major energy users, advocating for local governments to have the final say on data center projects. Concurrently, several Maryland counties have already implemented moratoriums or pauses on data center development, signaling local concerns over infrastructure, energy, fiscal, land-use, and community impacts.
With data center development expected to remain a prominent issue, both Pennsylvania's executive actions and Maryland's legislative and local government efforts highlight a growing trend towards increased oversight, local authority, and developer accountability for major infrastructure projects in the Mid-Atlantic region.