Pa. Gov. Shapiro says too many data center developers 'don't care about our communities'
Pennsylvania Gov. Josh Shapiro criticized data center developers for not caring about local communities and signed an executive order to implement stringent requirements for AI data center projects in the state. This order removes AI data centers from a fast-track approval program and mandates developers secure local support, generate their own power, and protect environmental resources. The move comes amid growing public opposition to data centers and ahead of gubernatorial elections, where development policy is a key issue.
Pennsylvania Governor Josh Shapiro criticized data center developers on Tuesday, stating that "too many" do not care about the communities where they build artificial intelligence projects. Speaking on CNBC, Governor Shapiro emphasized the need for CEOs who "give a damn about the community," contrasting this with developers he claims "run roughshod over our communities." These comments follow an August 18 executive order he signed, which mandates stringent Responsible Infrastructure Development (GRID) Requirements for all AI data center proposals in Pennsylvania and removes them from a previous fast-track approval process.
The executive order, which Shapiro described as imposing "the most stringent requirements in the entire country," dictates that developers must secure local support before seeking state permits, generate and pay for their own power to avoid burdening local utilities, and protect water supply and air quality. The Governor underscored that these standards are now legally binding. This policy shift reflects a broader trend among US governors to impose greater scrutiny on data center development amidst public opposition regarding electricity demand, utility costs, and strain on water resources.
Shapiro's actions come as he seeks re-election against Republican challenger Stacy Garrity, who labeled the executive order "damage control" and vowed to pause data center development in Pennsylvania if elected. However, Garrity previously expressed a desire for Pennsylvania to attract more data centers, noting Ohio's lead in the sector. The political implications of data center opposition are significant, as evidenced by a National Republican Senatorial Committee memo warning that voter backlash could jeopardize Sen. Jon Husted's re-election bid in Ohio.
Despite the criticism, David Sacks, co-chair of the President's Council of Advisors on Science and Technology, suggested that educating the public on data centers' potential benefits, such as funding grid upgrades and efficient water use, could sway public opinion. He believes there is a viable path for communities and data center companies to find common ground.