Governor of Pennsylvania Josh Shapiro has signed an executive order that he says introduces the strictest guardrails for AI data center developments in the US. The order aims to protect local communities and the state’s environment from what Shapiro called predatory developers.
The governor noted that Executive Order 2026-05 requires that all AI data center proposals comply with the Governor’s Responsible Infrastructure Development (GRID) requirements. These requirements are designed to block speculative, irresponsible data center projects from moving forward by giving Pennsylvanian communities more control over development decisions.
“My message to data center developers is clear: 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. These are some of the biggest companies in the world – they can afford to be good neighbors, follow the rules, and do this right,” said Shapiro at a press briefing on Tuesday.
The GRID requirements which were introduced earlier this year stipulate that developers must pay the full cost of new electricity generation, transmission, distribution, and other costs associated with powering facilities without shifting that burden onto ratepayers in the state as has been the case to date.
Developers must also commit to open, transparent engagement with residents and leaders as well as hire and train local workers. Furthermore, investments in schools, infrastructure, and long-term economic development are outlined as a requirement, as is meeting the highest standards for environmental protection.
Developers will need to sign a legally binding Consent Order and Agreement which imposes penalties on developers that do not follow through with those commitments. The governor’s executive order also removes all AI data center projects from the state’s Permit Fast Track Program, and bars them entirely from the program in the future.
Furthermore, developers will no longer be allowed to make use of nondisclosure agreements for data center projects.
New permit approval process codified
Effective immediately, all data center permits will be reviewed by the Department of Environmental Protection, which will only consider developers that make a legally binding commitment to the GRID requirements. Even then, developers will need approval from local municipalities to move forward. The state’s Department of Revenue has been directed to include GRID requirement compliance in the Computer Data Center Equipment Exemption Program, so that developers who don’t commit to GRID aren’t granted the existing tax exemption. There are 14 existing or in-development data center locations that have this tax exemption.
The governor has also directed various state agencies to draft, review, and update regulations that dictate how data center projects are approved.
Unlike the moratorium imposed by New York Governor Kathy Hochul, Shapiro doesn’t seem to be intent on halting buildouts altogether. Indeed, his office’s press release notes that these guardrails have the intention of maintaining Pennsylvania’s status as a major investment destination while making sure developers meet standards that protect ratepayers, communities, workers, and the environment.
The executive order does represent a shift in Shapiro’s stance on data centers. Little more than a year ago, he welcomed a US$ 20 billion investment from Amazon which planned to build multiple AI data center campuses in Pennsylvania. The governor still wants data center developers to invest in the state but this must be balanced with the needs of the people and businesses living in Pennsylvania.
There are at present roughly 174 data centers in Pennsylvania according to numbers from Data Center Map. In the last year the Department of Environmental Protection identified 100 data center projects from publicly sourced databases. Only 58 projects have discussed permitting with the department, 15 of which have applied for a permit and only five have received the necessary permits. While Shapiro wants responsible data center operators to choose the state, whether they will following this executive order remains to be seen.