Gov. Shapiro announces plan to attract ‘responsible’ data center development
Pennsylvania Governor Josh Shapiro announced a plan to attract data center development through incentives, contingent on developers mitigating environmental and electric grid impacts. This voluntary program aims for responsible development, though environmental groups criticize it for prioritizing corporations. The plan requires legislative approval to implement new standards.
Pennsylvania Governor Josh Shapiro has unveiled a plan to incentivize "responsible" data center development across the state. The proposal offers perks like tax incentives and streamlined permitting to operators who commit to mitigating their environmental and electric grid impacts and investing in local communities. Governor Shapiro stated the voluntary program aims to put "clear guardrails in place to hold developers accountable" and address concerns from Pennsylvanians regarding data center impacts on communities, the environment, and utility bills.
The governor's initiative comes as over 50 new data centers are planned or under construction in Pennsylvania, following a previous $20 billion investment from Amazon for AI innovation campuses, including a data center in Bucks County. While proponents highlight potential tax revenue, residents and environmental groups have raised concerns about increased electricity bills, air quality, and water usage. Environmental advocates argue the plan prioritizes corporations over the environment, while industry groups find the proposed framework "complicated" and potentially detrimental to development.
Implementation of Governor Shapiro's plan would necessitate state lawmakers passing new legislation, including amendments to current tax laws. The governor has also supported separate legislation to create a model data center ordinance, intended to streamline the development process for such facilities.