Pennsylvania governor signs data center executive order. Critics say it falls short.
Pennsylvania Governor Josh Shapiro signed an executive order imposing legally binding "stringent requirements" on data center developers, including mandates for renewable energy, local hiring, transparency, and environmental compliance. While Shapiro called it the "strictest guardrails in the nation," critics, including his reelection opponent, argue it falls short by not including a moratorium or reversing state tax incentives. The order aims to slow development progress for non-compliant developers by delaying permit reviews until local land use approvals are obtained.
Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday, introducing "legally binding" and "stringent requirements" for artificial intelligence data center developers operating in the commonwealth. The executive action mandates that developers provide their own power sources, increasingly from renewable energy, establish robust local hiring processes and community benefits agreements, ensure public transparency, and comply with clean air and pure water standards. According to Secretary Jessica Shirley of the state Department of Environmental Protection, developers who do not adhere to these standards will face delays in permit reviews until local land use approvals are secured.
Governor Shapiro asserted that the order implements the "strictest guardrails in the nation," aiming to prevent what he described as "greedy" and "predatory" developers from "recklessly" pushing projects without regard for local communities. He emphasized that the state would not be "bullied" or "bulldozed by the lawyers for these big tech companies." The move comes after months of pressure, with Shapiro facing criticism from both his reelection opponent, Republican state Treasurer Stacey Garrity, and grassroots campaigns for not limiting data center expansion.
Despite the governor's claims, critics argue the executive order does not go far enough. Garrity's campaign accused Shapiro of "gaslighting," pointing to his past support for data center investments, including a $20 billion Amazon project in Luzerne County, and suggesting his current stance is a political maneuver. Food and Water Watch also labeled the action "too little, too late," advocating for a mandatory moratorium on all new data center development, similar to one enacted in New York.
The new executive order also removes the option for data center projects to qualify for the state's fast-tracked permitting process, a benefit previously tied to the voluntary Governor’s Responsible Infrastructure Development (GRID) Standards. These standards, which also promoted clean energy and local engagement, passed the House but stalled in the Republican-led Senate, which is now considering legislation to eliminate sales tax exemptions for data centers and empower local communities with moratorium decisions.