PA’s new executive order won’t halt data centers — but it could reshape where they get built
Pennsylvania Governor Josh Shapiro signed an executive order that will reshape data center development in the state, imposing stricter environmental and energy standards and removing projects from an expedited permitting program. The Department of Environmental Protection will now play a larger role, requiring developers to agree to project-specific Consent Orders and adhere to GRID Standards. This initiative aims to encourage data centers to utilize sites with existing power infrastructure and lower-carbon energy sources.
Pennsylvania Governor Josh Shapiro has signed an executive order that will fundamentally alter the landscape for data center development in the state. While not imposing a moratorium as some advocates requested, the order introduces stricter environmental and energy standards, effectively changing the economic calculus and timelines for new projects.
The new rules will give the Pennsylvania Department of Environmental Protection (DEP) a significantly expanded role. Data center developers must now agree to a project-specific Consent Order and Agreement, developed by the DEP, which incorporates GRID Standards before their permit applications will even be considered. This shift means compliance with environmental and community GRID Standards, previously voluntary for additional state support, is now mandatory. Developers will also be required to submit annual reports on energy and water consumption, along with details on environmental protection measures.
The executive order also removes data center projects from the state's expedited permitting program and makes tax incentives conditional on meeting these new requirements. Brian Kennedy, senior vice president for operations and government affairs at the Pittsburgh Technology Council, highlighted an opportunity to repurpose brownfields and former coal-fired power plants for data centers, leveraging existing infrastructure.
Examples of current projects that may be impacted include GE Vernova's plan to convert a Homer City power plant to natural gas for a data center, and Microsoft's deal with Constellation Energy to reopen Three Mile Island for its Londonderry data center operations. Gov. Shapiro emphasized that new data center developments must source an "increasingly significant portion" of their energy from clean sources such as solar, nuclear, and battery storage.