Governor Josh Shapiro announced the full Governor’s Responsible Infrastructure Development (GRID) Standards. First proposed in the 2026-27 budget address, these standards establish a framework and accountability metrics for data center development within Pennsylvania.
“As Pennsylvania continues to compete for major economic development projects and lead on innovation, we have a responsibility to set strict accountability standards and ensure these projects create real opportunity for our communities,” said Governor Shapiro.
Developers seeking state support—including coordinated project assistance through the Office of Transformation and Opportunity (OTO), expedited permitting, and state tax incentives—must meet these criteria. The standards were developed with input from local leaders, organized labor, industry representatives, and environmental stakeholders.
To receive Commonwealth support, developers must submit a joint application for GRID Certification to the OTO and the Department of Revenue (DOR).
Permit Fast-Tracking: Approved projects become eligible for OTO’s PA Permit Fast Track Program, which streamlines permitting across multiple state agencies.
Proposed Tax Incentive Changes: Under current law (Act 25 of 2021), data centers certified by the DOR receive a sales and use tax exemption on computer equipment. This exemption is projected to cost the Commonwealth over $517 million annually by FY 2030-31. The administration is asking the General Assembly to pass legislation requiring developers to obtain GRID certification to remain eligible for these tax benefits.
Compliance and Enforcement: OTO will publish information on certified projects online. Operational projects must submit annual, third-party-validated reports. Failure to meet the standards can result in the DOR revoking certification and clawing back provided tax benefits.
Applicants must demonstrate compliance across four primary areas:
1. Energy Affordability
Capacity Costs: Developers must fully fund the building or purchasing of the incremental electric capacity required to meet their project’s demand, ensuring costs are not passed to utility ratepayers.
Location & Source: This capacity must generally be located within the same deliverability area as the project. It must include an increasing percentage of Pennsylvania-based, dispatchable clean firm energy, reaching up to 32% by 2035.
Infrastructure Fees: Developers must pay all costs for interconnection, transmission, distribution, network upgrades, and ancillary services caused by the project.
2. Transparency and Community Engagement
Public Outreach: Developers must submit an outreach plan that includes early notification to local governments, public meetings, and consultation with municipal leaders.
Project Specifications: Applications must disclose the data center’s end-users, building size, campus acreage, estimated peak electric demand, estimated annual water consumption/source, percentage of non-emitting electricity, Power Usage Effectiveness (PUE), and Water Usage Effectiveness (WUE).
3. Workforce and Economic Development
Investment Thresholds: Projects must involve at least $250 million in cumulative new investment.
Job Creation: Developers must create at least 200 prevailing wage construction jobs. By the fourth anniversary of certification, they must create at least 50 jobs paying at least 125% of the state’s average wage, with total payroll at the site reaching at least $1.5 million.
Community Benefit Agreements: Developers must submit local hiring and training plans (including registered apprenticeships) and enter into agreements addressing local impacts such as noise, traffic, lighting, air quality, emergency management, and financial contributions to local priorities.
4. Environmental Protection
Efficiency Certifications: Developers must submit a sustainability plan utilizing advanced technology to limit water and energy use, aiming for certifications like LEED for Data Centers, EPA Energy Star, GBI Green Globes, or ISO standards.
Emissions: Projects must minimize local air pollutants by using zero-emission energy storage where possible or backup generators that meet strict emissions standards.
Ecological Mitigation: For projects located in High Quality/Exceptional Value Water watersheds or Pennsylvania Climate Change Connectivity areas, developers must commit to additional monitoring and mitigation of impacts to land, water, and biological resources.
