Pa. Gov. Shapiro signs executive order to 'rein in' data center development

Pennsylvania Governor Josh Shapiro has signed an executive order aimed at regulating data center development in the state, a significant change from his prior efforts to attract such investments. The order imposes strict new rules, including a mandatory stamp of approval from local officials and a halt to expedited permitting for new data center projects. Additionally, state agencies are now prohibited from signing non-disclosure agreements regarding development projects.

The governor emphasized that developers will be required to sign contracts detailing transparency and robust natural resource protections, including stringent water conservation measures. The Department of Environmental Protection (DEP) will publicly track and map data center permits, with DEP Secretary Jessica Shirley confirming that permits will not be issued until all local land use approvals are secured. Governor Shapiro stated that the administration would not be "bullied" by big tech companies, asserting that a history of industry running "roughshod over our communities" would end with his tenure.

This executive action follows weeks after the state budget, which had largely left the industry unregulated, was signed into law. Lawmakers had previously considered and voted on proposed moratoriums for data center construction, but these measures were ultimately rejected from the final fiscal deal, which only included energy reporting requirements. Public concern over data centers' environmental impact and potential costs has been a growing "flashpoint" in state politics, with polls indicating strong community opposition. Republican gubernatorial candidate Stacy Garrity criticized Shapiro for what she termed "gaslighting" the public, alleging he is recalibrating his stance after benefitting from data center industry campaign donations.