Shapiro signs executive order limiting data center development
Pennsylvania Gov. Josh Shapiro signed an executive order imposing strict new requirements on data center development, including mandates on energy affordability, water use, and community engagement. This action reflects a growing national trend as other governors and political figures in states like Texas, Arizona, and New York are also introducing restrictions or moratoriums on data centers due to public opposition and concerns over energy and environmental impact. The order also gives local municipalities more authority over data center projects.
Pennsylvania Governor Josh Shapiro signed an executive order Tuesday that imposes significant restrictions on data center development, responding to increasing public discontent and the energy demands of AI-driven server farms. The order mandates that data center projects will no longer receive priority for construction permits or tax exemptions unless they meet specific standards, including covering the full cost of their electricity, limiting water usage, and engaging in local community outreach. Governor Shapiro stated that Pennsylvania is experiencing an "unacceptable number of speculative proposals for data centers" from developers who disregard local communities, a sentiment echoed in the growing backlash observed across the state and nationwide.
This move by Shapiro, a potential 2028 White House candidate, highlights a broader shift among state leaders, with several governors now altering their previous pro-data center stances ahead of midterm elections. For instance, Texas Governor Greg Abbott, once a proponent, has directed regulators to address concerns about data centers' impact on electricity bills and plans to introduce legislative regulations next year, including removing tax breaks.
Similar actions are underway in other states: Arizona Governor Katie Hobbs secured a three-year moratorium on data center sales tax exemptions, New York Governor Kathy Hochul implemented a one-year ban on large data centers for environmental and energy grid protections, and Illinois Governor JB Pritzker halted sales tax exemptions pending stricter operational standards. The growing opposition is driven by concerns over loss of open space, farmland, rural character, noise pollution, water scarcity, and rising electricity costs, leading to project rejections in local zoning and permitting boards across the U.S.