Gov. Shapiro Signs Data Center Executive Order, But Critics Say It Falls Short
Pennsylvania Governor Josh Shapiro signed an executive order imposing stringent, legally binding requirements on AI data center developers, a move critics say falls short of a full moratorium. The order mandates developers to provide their own renewable power, comply with environmental standards, and obtain local land use approval before state permit reviews. This action comes after months of pressure to address concerns over data center expansion.
Pennsylvania Governor Josh Shapiro has signed an executive order making previously voluntary standards for artificial intelligence (AI) data center developers legally binding within the commonwealth. Speaking forcefully, Gov. Shapiro stated that developers who wish to do business in Pennsylvania must now comply with stringent requirements, including providing their own power with increasing renewable energy, adhering to local hiring processes and community benefits agreements, ensuring public transparency, and meeting clean air and pure water standards.
Secretary of the state Department of Environmental Protection, Jessica Shirley, clarified that the DEP will not review permit applications from developers who fail to meet these standards until local land use approvals are secured, effectively slowing their progress. Gov. Shapiro emphasized that the action implements "the strictest guardrails in the nation," though he acknowledged it falls short of a moratorium like the one advanced in New York and does not reverse state tax incentives.
The executive order comes after months of pressure from grassroots campaigns and political opponents, including Republican state Treasurer Stacey Garrity, who criticized Shapiro for not limiting data center growth. Garrity's campaign, however, dismissed the action as "gaslighting," accusing Shapiro of changing his stance after previously welcoming significant data center investments, such as Amazon's in Luzerne County. Data Center Coalition executive vice president Dan Diorio expressed concerns about changing rules "midstream" potentially impacting ongoing investments.
While receiving support from some Democratic legislative leaders and organizations like the Pennsylvania State Association of Township Supervisors and the Pennsylvania Utility Law Project, others, such as Food and Water Watch, criticized the order as "too little, too late" and called for a mandatory moratorium on all new data center development.