Stricter Data Center Controls
Governor Shapiro Signs Executive Orders for Stricter Data Center Development Guardrails in Pennsylvania
Key Points
Developers must sign a legally binding consent order with the state and file a notice of intent to comply with the GRID standards before their data center projects can proceed.
The executive order creates a public database listing all proposed data center projects across Pennsylvania that have engaged with communities, enhancing transparency for residents.
State agencies are barred from signing non-disclosure agreements about development projects, preventing opaque dealings between government and developers.
Shapiro highlighted that there are more than 100 data center proposals under discussion in Pennsylvania, underscoring the scale of interest and the need for guardrails.
A 2026 CNBC analysis cited in reporting suggests Pennsylvania is among the top states positioned to capitalize on AI growth due to its abundant water resources and electricity capacity.
Pennsylvania Governor Josh Shapiro signed two executive orders on Thursday creating what officials call the nation's toughest rules for data center development. The orders — collectively known as GRID, or Responsible Infrastructure Development — strip fast-track permitting for data centers and force developers to fund their own electricity, hire local workers, and sign binding agreements with communities, according to CNN.
Shapiro framed the move as a response to legislative inaction as interest in Pennsylvania surges. More than 100 data center proposals are currently under discussion in the state, Fox29 reported. A separate analysis cited in coverage ranks Pennsylvania among the top states poised to benefit from AI growth, due to its abundant water supplies and electricity capacity.
What GRID Requires Developers to Do
Before any project can move forward, developers must file a notice of intent to comply with GRID standards. They must also sign a legally binding consent order with the state, according to CNN. That consent order can carry penalties if the developer fails to follow through on its promises.
Developers must also show plans to power their facilities with clean energy. They cannot rely on the existing grid without demonstrating how they will supply their own electricity. Projects must include community benefits agreements — written deals that spell out what the project will give back to local residents and workers, Fox29 reported.
State Agencies Lose Fast-Track Power and Secrecy
Pennsylvania had previously offered data centers fast-track permitting — a way to speed up approvals and jump to the front of the line. Shapiro's orders end that practice entirely, CNN reported. Data centers will now go through standard review like any other large industrial project.
The orders also bar state agencies from signing non-disclosure agreements with developers. That ban aims to stop secret deals between government officials and companies. A new public database will list every proposed data center that has contacted a community in Pennsylvania, giving residents visibility into what is being planned near them, according to Fox29.
Local Communities Get a Real Say on Approvals
One of the biggest shifts is the power given to municipalities. Under GRID, local governments can approve or reject projects based on strict criteria. Developers must file detailed plans with the Department of Environmental Protection. Projects must also meet constitutional protections for clean air and water, CNN reported.
Shapiro said communities had been overwhelmed by a wave of speculative proposals — projects floated by developers with no firm plans to actually build. Pennsylvania has seen more than $20 billion in proposed data center investment, the Wall Street Journal reported. The governor argued stronger rules were needed to separate serious projects from predatory ones.
Lawmakers Push for Moratorium as Tensions Rise
Shapiro signed the orders after the state legislature failed to act on data center oversight. Some lawmakers are now pushing further, seeking a full moratorium on new data center construction while rules are set. That reflects a deeper tension in Pennsylvania and across the US between welcoming AI and cloud infrastructure investment and protecting local communities.
The Wall Street Journal noted Pennsylvania is the latest in a growing number of states to restrict data center construction. The orders do not ban data centers outright. They set a high bar that developers must clear before getting any state cooperation or approval. Whether that bar slows the flood of proposals — or just filters out the weakest ones — remains to be seen.
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