Gov. Josh Shapiro announces finalized data center development standards in Pennsylvania
Pennsylvania Governor Josh Shapiro announced finalized Responsible Infrastructure Development (GRID) Standards for data center projects. These standards, which could become law, require developers to meet environmental, energy, transparency, and community benefit criteria to receive state support and tax exemptions. The move comes as residents across the state have expressed concerns about the impact of data center developments.
Pennsylvania Governor Josh Shapiro has officially announced the finalized Governor's Responsible Infrastructure Development (GRID) Standards for data center development across the state. These standards, first introduced during his February budget address, aim to establish a higher bar for projects seeking state support, ensuring they contribute positively to communities and adhere to environmental and energy sustainability.
Developers who meet these rigorous standards would qualify for GRID Certification from the state’s Office of Transformation and Opportunity (OTO) and the Department of Revenue (DOR), gaining access to the PA Permit Fast Track Program and tax benefits. However, developers not complying with the standards would not receive state backing. Governor Shapiro emphasized that these measures are designed to hold developers accountable, protect consumers, strengthen communities, and prioritize Pennsylvanians, responding to concerns from residents about data center impacts on communities, the environment, and utility bills.
The GRID Standards focus on four key areas: protecting energy affordability by requiring developers to provide for their own energy needs and source increasing percentages of clean energy; promoting transparency and community engagement through outreach plans and detailed project footprint reports including estimated water and electricity consumption; supporting workforce and economic development by mandating significant investments, job creation at prevailing wages, and community benefit agreements; and strengthening environmental protection through sustainability plans, advanced technology for efficiency, and minimizing local air pollutants. The administration is actively working with the General Assembly to codify these standards into law and amend Act 25 of 2021, which currently offers sales and use tax exemptions to data center owners and operators. The state projects the current tax exemption could cost over $517 million annually by FY 2030-31, with the proposed changes requiring GRID certification for eligibility, redirecting potential revenue to public priorities.