In light of the growing surge in artificial intelligence and the development of data centers, Gov. Josh Shapiro signed an executive order placing strict new guardrails on data centers that seek to limit electricity and water usage.
The executive order officially implements the Governor’s Responsible Infrastructure Development (GRID) Principles, requiring tech companies to secure their own power supplies and gain local community approval before receiving state permits.
The move marks a significant policy shift for the Shapiro administration, which previously courted major tech investments in the state.
“I’ve heard loud and clear from the people of Pennsylvania as I’ve traveled our Commonwealth, and I’m here to say that we will not be bullied by developers and bulldozed by the lawyers working for these big tech companies”, Shapiro said.
The executive order officially codifies four core standards for any data center operator seeking state cooperation:
Energy Affordability: Developers must procure or generate their own power supply—prioritizing clean energy—to prevent grid strain and protect residential electricity rates from spiking.
Local Approvals & Transparency: Projects will no longer receive state permits without prior local municipality sign-offs, mandatory community notice, and public engagement.
Environmental Protection: Operators must sign legally binding agreements regarding strict water conservation, pollution limits, and resource management.
Workforce Commitments: Projects must utilize registered apprenticeship programs and prioritize local hiring.
Under the new order, the state is immediately stripping data center developments from Pennsylvania’s expedited “Fast-Track” permitting program—including multi-billion-dollar projects previously announced by major tech giants like Amazon. Moving forward, no data center project will be eligible for fast-tracked state processing unless it fully complies with the binding GRID requirements.
“Developers must bring their own power and pay for all the costs associated with that electricity. They will not be permitted to saddle homeowners and businesses with added costs because of their development,” the Governor noted.
While the executive order does not enact a total moratorium on data center construction, requiring local municipal approval alongside stringent energy conditions is expected to significantly slow the pace of unvetted development across rural and suburban Pennsylvania.
