The stakes of Josh Shapiro's data center pivot
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Photo illustration: Brendan Lynch/Axios. Photo: Mark Makela/Getty Images
Pennsylvania Gov. Josh Shapiro's (D) newly hard line on data centers says plenty about the evolving politics of AI and the tech industry's challenge to build the energy and computing power it needs.
Why it matters: He's in the 2028 presidential mix, leads a critical swing state, and faces November reelection in one of several governor's races where data centers are taking center stage.
Catch up quick: Shapiro yesterday issued an executive order that creates a tougher road for data center developers.
- Changes include stricter standards on community buy-in, booting data centers from the state's fast-track permitting program, and making future projects ineligible.
- It comes after the state's Senate did not act on his proposals in May, but it's also tougher than the earlier policies.
The big picture: The shift in political tone is unmistakable.
- While his May rollout talked up strict standards, it also said the state is looking to compete on "innovation," and he's previously been more welcoming.
- The vibes were different yesterday. Shapiro went after "predatory" actors and used other tough language. Still, he stopped short of a moratorium.
State of play: The new standards brought cheers from environmental groups, including the League of Conservation Voters, a large and politically active outfit.
Friction point: "I thought he was the clear leader of the Abundance Democrats, but this is just more of the old business-bashing Dem playbook," Adam Thierer, an innovation policy analyst with the R Street Institute, a free-market think tank, said on X.
What we're watching: Data centers are shaking up races nationwide as the midterms approach.
- The Senate GOP campaign arm, in a private memo to top AI companies, warns that toxic views of U.S. data centers are killing the party's chances of holding a vital seat in Ohio, Axios' Alex Isenstadt scooped this morning.
