Pennsylvania Governor Shapiro Proposes New Data Center Regulations
Pennsylvania Governor Josh Shapiro has introduced the "GRID Standards" plan to hold data center developers accountable, requiring commitments to energy, community engagement, environmental sustainability, and economic investment to qualify for faster permitting and tax incentives. Republican lawmakers have counter-proposed legislation to repeal data center tax breaks and allow local municipalities to institute 18-month moratoriums on applications.
Pennsylvania Governor Josh Shapiro has unveiled a new plan called the "Governor's Responsible Infrastructure Development" (GRID) Standards, aiming to set clear expectations and hold data center developers accountable in the commonwealth. The proposal seeks to fast-track permitting processes and offer state tax incentives to developers who adhere to these standards, with legislation currently being drafted in the General Assembly.
The GRID Standards require developers to submit a joint application outlining how their projects will meet four key criteria. These include providing or generating their energy needs without increasing costs for ratepayers, committing to an increasing percentage of renewable energy (aiming for 32% by 2035), and covering all transmission, distribution, and network upgrade costs. Developers must also create a community outreach plan, promote public engagement, and submit a report detailing the project's campus size, water usage, and peak electric demand. Furthermore, projects must commit to at least $250 million in new investments, creating 200 construction jobs and 50 jobs paying 125% of the statewide average salary within four years. Environmental sustainability plans detailing water and energy consumption limits and the use of zero-emission systems are also mandatory.
In response, Senate Majority Leader Joe Pittman acknowledged the proposal. Separately, Republican Senator Jarrett Coleman and Representative Jamie Walsh have introduced their own package of bills. These measures would repeal a tax break for data centers and empower municipalities to implement an 18-month moratorium on data center applications, allowing local governments to assess impacts and adjust ordinances. The Data Center Coalition (DCC) issued a statement highlighting existing data center investments and job creation in Pennsylvania.