Shapiro order puts curbs on data center growth
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Gov. Josh Shapiro signed an executive order Tuesday putting curbs on rampant data center growth, the hottest political issue in Pennsylvania.
Executive Order 2026-05 puts Shapiro's proposed Governor's Responsible Infrastructure Development (GRID) requirements into effect in an effort to block speculative data center projects from moving forward, give local host communities greater say and protect the environment and electric energy grid, said Shapiro.
"My message to data center developers is clear," said Shapiro at a press conference. "If you can't agree to our strict requirements and get the community where you want to build to say 'yes,' you're not going to have the Commonwealth's support either."
The order sets requirements that data center developers must meet regarding energy affordability, community engagement, workforce and economic development, transparency, and environmental protection and local approval to receive necessary state permits.
GRID requirements
GRID requires that developers:
-- Pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their project without shifting costs to Pennsylvania households and businesses;
-- Commit to open, transparent engagement with local residents and leaders including detailed community outreach plans that include notification to local governments, public meetings, and consultation early enough in the process to allow meaningful public input on major design decisions;
-- Hire and train local workers and enter into meaningful community benefit agreements that invest in local priorities, from schools and infrastructure to long-term economic development; and
-- Meet the highest standards for environmental protection, including strict water conservation.
Asked about supporting a moratorium on approval of data center projects as some state lawmakers propose, Shapiro said he supports the requirements for data center approval in his executive order.
Shapiro's action comes on the cusp of the fall election campaign where he is seeking reelection as governor. Republican gubernatorial candidate Stacy Garrity recently called for a pause on data center approvals.
The governor said an executive order is needed because of an onslaught of over 100 data center projects. Many are speculative, he added. Bad developers are scaring local residents with legal threats as they seek approval for plans that lack specifics.
"We will not be bullied by these developers," said Shapiro.
Shapiro specifically referred to a cluster of data center projects in the small borough of Archbald in Lackawanna County that won't have his support. He said he met with Archbald residents last May on the matter.
The flood of data center projects came after the Amazon data center project in Luzerne County was proposed in 2024-25 using the Susquehanna nuclear power plant as its energy source, added Shapiro.
The state Department of Environmental Protection (DEP) is aware of over 100 projects reported in publicly sourced databases, and 58 projects engaged with DEP to discuss permitting at some level of formality. Of those projects, 15 have applied for at least one DEP permit, and only five have received all necessary permits required for their first phase of development.
Shapiro also said he's removing all AI data center projects from the PA Permit Fast Track Program that he established and won't consider data center projects for the program going forward. Fast tracking isn't right for data centers, he added.
The order implements new public transparency requirements for developers and bans the use of nondisclosure agreements with data center projects.
In addition, the Department of Revenue will update guidelines for the Computer Data Center Equipment Exemption Program to ensure applicants for the state sales and use tax exemption comply with the GRID requirements.
Data center operators will be required to submit to DEP information on energy and water consumption. The measurements will include total energy consumption and total natural gas consumption for the previous calendar year; estimated average amount of energy usage per hour during the data center's peak; total water consumption for the previous calendar year, along with the maximum day demand; and any measures taken to protect the environment and public from polluted water or air.
The administration created a publicly accessible map of data center projects that engaged with DEP. On the map, residents can easily track the status of permits as they are reviewed by the agency. The map will be updated regularly as DEP becomes aware of new proposals.
Energy use
The Special Counsel for Energy Affordability, the Shapiro Administration's energy watchdog, will engage with the Pennsylvania Public Utility Commission (PUC) to ensure data center development does not shift energy costs onto Pennsylvania households and businesses -- and does not compromise the reliability of their electricity service.
The special counsel will support the development of protocols to ensure that, in the event the power grid is stressed, data centers lose electric service before other customers.
Senate Republicans respond
Shapiro said he decided on an executive order because House Bill 2650 which codifies GRID requirements hasn't been acted on by the Republican-controlled Senate. The Democratic controlled House approved HB2650 by a 134-68 vote last June.
Senate Majority Leader Joe Pittman, R-Indiana, criticized Shapiro's action and said the Senate will work on data center legislation this fall.
"A year ago, Governor Shapiro proudly announced his administration was 'already all in on AI' and 'the future of AI is going to run right here through the Commonwealth of Pennsylvania,''' said Pittman. "His comments today seem aimed at erasing his remarks from last year and underscore how afraid he's become over his previous record of embracing data centers, only to find out how politically intense the proposals have become. He's not seriously engaged on this issue, other than what we have seen on his data center-driven social media."
"We strongly believe communities need to have the ability to weigh in on what is best for their residents and are open to further discussions, including considering measures to allow for moratorium decisions to be made at the local level," said Pittman.
The order starts to address data center issues relating to affordability, clean energy, and transparency, said Dawone Robinson, managing director, Climate & Energy, Natural Resources Defense Council.
"The announcement is important because it reinforces a fundamental principle: land-use decisions are best made at the local level by the officials who know their communities, understand local conditions, such as geography and public safety capabilities, and are accountable to the residents they serve," said Dave Sanko, executive director of the Pennsylvania State Association of Township Supervisors.