Pennsylvania Tightens Data Center Regulations
Pennsylvania has joined the ranks of states making it more challenging for companies to build artificial intelligence (AI) data centers. On August 19, 2026, Governor Josh Shapiro signed an executive order implementing a new framework called GRID (Governor’s Responsible Infrastructure Development).
Key Measures:
- Grid Independence: Data centers must adhere to four core principles: energy affordability, transparency and community engagement, workforce development, and environmental protection.
- No Fast Track Permits: The state’s permit fast-track program is eliminated for data centers.
- Local Approval Required: Environmental reviews are paused until local approvals are secured by developers.
- No Non-Disclosure Agreements: State agencies cannot sign non-disclosure agreements related to data center projects.
- Ratepayer Protections: Developers must cover the full cost of new infrastructure needed to power their projects, preventing costs from being shifted to Pennsylvania households and businesses.
- Reliability Costs: Data centers may be required to pay for reliability backstop auction costs.
- Reporting Requirements: Annual reporting on energy consumption, peak demand, water use, and maximum-day water demand is mandated.
Governor Shapiro’s Stance:
"We will not be bullied by developers and bulldozed by the lawyers working for these big tech companies," said Governor Shapiro at the signing. He emphasized that the requirements are legally binding and not voluntary standards.
Background:
Pennsylvania has seen a surge in data center proposals, with more than 100 identified. Amazon committed $20 billion to Pennsylvania data centers in 2025, and the Homer City Energy Campus is a massive $10 billion-plus development. Rising energy costs and increasing demand from data centers have put pressure on the state’s resources.
Shapiro’s Target:
The executive order aims to protect communities like Archbald, a small borough facing six proposed data center campuses.