Governor Shapiro signs executive order setting data center requirements
Governor Josh Shapiro signed Executive Order 2026-05, establishing new statewide requirements for all data center proposals seeking permits in Pennsylvania. The order aims to block irresponsible projects, give local communities more power, and protect residents by mandating adherence to GRID Requirements for energy affordability, environmental protection, and community engagement. It also removes AI data center projects from the PA Permit Fast Track Program and updates tax exemption guidelines.
On August 18, Governor Josh Shapiro signed Executive Order 2026-05 in Harrisburg, Pennsylvania, establishing new statewide requirements for all data center proposals applying for permits. The order, known as the Governor's Responsible Infrastructure Development (GRID) Requirements, aims to block speculative and irresponsible data center projects, enhance local community power over development, and protect Pennsylvania residents.
The Executive Order mandates that the Department of Environmental Protection (DEP) will only evaluate permit applications if developers make a legally binding commitment to meet GRID Requirements and secure all necessary local approvals. It immediately removes AI data center projects from the PA Permit Fast Track Program and prohibits the use of nondisclosure agreements. The Department of Revenue (DOR) will also update guidelines for the Computer Data Center Equipment Exemption Program, requiring compliance with GRID for tax exemptions.
Governor Shapiro stated that the order is a direct response to Pennsylvanians' concerns about the potential impacts of data center development on communities, the environment, and utility bills. Lieutenant Governor Austin Davis echoed environmental protection concerns, emphasizing clean air and water. The administration also noted an "unprecedented number" of data center proposals, with over 100 projects reported and 58 engaged with DEP, but only 5 having received all necessary permits for their first phase.
Key officials lauded the order, with DEP Secretary Jessica Shirley highlighting the need for strong, enforceable environmental standards. Commissioner John Smith of Hampden Township praised the added layer of state protection alongside local control. Dawone Robinson of the Natural Resources Defense Council called it a "strong start," and Special Counsel for Energy Affordability Mark Szybist underscored efforts to prevent data centers from shifting energy costs onto residents. The Governor continues to urge the Pennsylvania General Assembly to codify these protections into law, citing a lack of action from Senate Republican leaders.