Pennsylvania Governor Imposes New Requirements on AI Data Center Developers

Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday, titled "Protecting Pennsylvania Consumers From Data Center Projects," imposing new requirements on AI data center developers.

This action marks a state-level effort to regulate the rapidly expanding industry amid concerns over energy use, transparency, and local impacts. The order implements Shapiro's Governor's Responsible Infrastructure Development (GRID) requirements. Companies seeking to build AI data centers in Pennsylvania must now meet several conditions before projects can proceed. These requirements include paying all electricity costs associated with their facilities, sourcing a portion of power from clean energy, obtaining approval from local communities, and disclosing key information about projects that developers have often kept confidential.

Shapiro also removed data centers from Pennsylvania's Fast Track permitting program. This represents a shift for Shapiro, who previously welcomed major investments, such as Amazon's planned $20 billion data center expansion in Luzerne and Bucks counties. The executive order applies to permit or authorization applications submitted after August 18, 2026. Projects with existing permits or approvals can continue under their current status, though existing data centers are still subject to certain reporting and transparency requirements.

Shapiro stated that AI data center developers must respect our communities and abide by these stringent requirements. Senate Republicans argue this shift risks politicizing an issue better addressed through local decision-making. Shapiro also stated that nondisclosure agreements for data center projects will not be allowed in the state under his new order.