Shapiro puts new guardrails on Pa. data centers
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Gov. Josh Shapiro speaks in New York City in April. Photo: Michael M. Santiago/Getty Images
Gov. Josh Shapiro signed an executive order Tuesday tightening the rules for data center development in Pennsylvania, a move he said imposes the “strictest guardrails in the nation.”
Why it matters: The first-term Democratic governor and potential 2028 presidential contender once courted data center investment in Pennsylvania, but growing public opposition to energy demands and concerns about local control have led politicians nationwide to recalibrate that approach.
The big picture: Shapiro bypassed a divided General Assembly after it stalled in Harrisburg to enact his previously announced Responsible Infrastructure Development (GRID) standards through executive action.
The order removes all data center projects from the state’s fast-track permitting program and makes future data center projects ineligible for the program.
- It also requires developers to sign agreements enforcing GRID requirements, including a range of water, land and energy use guidelines.
- The Department of Environmental Protection will stall permits of those who refuse until they get local approval. Developers will also lose access to an existing sales tax exemption if they do not comply.
- Developers must secure local approval before the state will consider the applications.
Zoom in: The move also requires developers to supply their own power, including 10% from clean energy sources, and pay the costs tied to electricity use.
- It bars state agencies from signing nondisclosure agreements related to data center projects and requires developers to offer municipalities community benefits agreements and hire and train local workers.
What they’re saying: Shapiro said that of more than 100 speculative projects across the state, only five have the permits they would need to begin operating, noting many “lack detailed plans, have insufficient financing, don’t have access to the electricity they actually need … or have no agreement with a tech company to use the space once it's built.”
- Shapiro pointed to Archbald, a Lackawanna County borough of about 7,500 where residents are protesting plans for six data center campuses — more than anywhere else in Pennsylvania.
Between the lines: Shapiro’s political ambitions go beyond 2026, and he becomes one of the first White House hopefuls to make a splash against data centers.
- His executive order follows other high-profile politicians in states like Wisconsin, Michigan and Ohio who have come out strongly against new data centers.
The other side: Shapiro’s Republican challenger, state Treasurer Stacy Garrity, reiterated in a statement her call to pause all new data center development, saying Shapiro was reversing course amid shifting public opinion.
The bottom line: Shapiro’s order doesn’t pause new data center development outright, but the administration says the stricter standards will make it difficult for most developers to qualify for new projects.